Macatawa Bank Corporation (NASDAQ:MCBC) today announced its results
for the second quarter of 2018, reflecting continued strong
financial performance.
- Net income of $6.7 million in second quarter 2018 versus $4.8
million in second quarter 2017 – up 41%
- Growth in net interest income – up 15% from second quarter
2017
- Overhead expense increase held to 2% over second quarter
2017
- Loan portfolio balances and bond financing to businesses up by
$90.4 million (7%), from a year ago
- Core deposit balances up by $120.5 million (8%), from a year
ago
- Asset quality metrics remained strong
Macatawa reported net income of $6.7 million, or $0.20 per
diluted share, in the second quarter 2018 compared to $4.8 million,
or $0.14 per diluted share, in the second quarter 2017. For
the first six months of 2018, Macatawa reported net income of $12.5
million, or $0.37 per diluted share, compared to $9.2 million, or
$0.27 per diluted share, for the same period in 2017.
Macatawa’s 2018 earnings were positively impacted by continued
earning asset growth, net interest margin improvement and a lower
corporate federal income tax rate, due to tax reform enacted at the
end of 2017.
"Macatawa Bank Corporation achieved consistent and profitable
growth in the second quarter of 2018. Trends noted in the
first quarter continued and strengthened into the second quarter of
2018,” said Ronald L. Haan, President and CEO of the Company.
“Revenue growth, primarily higher net interest income, along with a
reduction in the federal corporate income tax rate and continued
expense management resulted in a 41 percent increase in net income
compared to the second quarter of 2017. Continued growth in
our balances of loans and bond financing to businesses, along with
increases in market interest rates have positively affected our net
interest income. While net interest income grew by 15
percent, our core operating expenses, excluding problem asset
costs, increased by only 2 percent.”
Mr. Haan concluded: "Our commitment to providing excellent
service while operating a well-disciplined company continues to
produce strong and consistent financial performance for our
shareholders. While our service quality standards have
resulted in additional business and revenue from our customers, our
credit quality and expense discipline continue to allow more of
that revenue to drop to the bottom line. These results
demonstrate that Macatawa Bank Corporation remains well-positioned
for continued growth and success in the second half of 2018.”
Operating ResultsNet interest
income for the second quarter 2018 totaled $14.7 million, an
increase of $471,000 from the first quarter 2018 and an increase of
$1.9 million from the second quarter 2017. Net interest
margin was 3.37 percent, up 3 basis points from the first quarter
2018, and up 13 basis points from the second quarter
2017.
Average interest earning assets for the second quarter 2018
increased $26.3 million from the first quarter 2018 and were up
$162.1 million from the second quarter 2017. This growth
along with increases in yields on interest earning assets were the
primary contributors to the improvement in net interest
income.
Non-interest income increased $336,000 in the second quarter
2018 compared to the first quarter 2018 and decreased $10,000 from
the second quarter 2017. These changes were largely due to
fluctuations in gains on sales of mortgage loans. Gains on
sales of mortgage loans in the second quarter 2018 were up $81,000
compared to the first quarter 2018 and down $254,000 from the
second quarter 2017. While overall mortgage volume was down
in the second quarter 2018 compared to the second quarter 2017, the
reduction in gains was also significantly impacted by the Bank
holding more of 2018 production in portfolio. The Bank
originated $18.8 million in portfolio mortgage loans in the second
quarter 2018 compared to $16.1 million in the first quarter 2018
and $12.2 million in the second quarter 2017. The Bank
originated $8.4 million in mortgage loans for sale in the second
quarter 2018 compared to $5.1 million in the first quarter 2018 and
$16.8 million in the second quarter 2017. Also positively
impacting non-interest income in the second quarter 2018 was a
$135,000 increase in debit card and interchange income compared to
the first quarter 2018 and an increase of $75,000 compared to the
second quarter 2017.
Non-interest expense was $11.3 million for the second quarter
2018, compared to $11.4 million for the first quarter 2018 and
$10.8 million for the second quarter 2017. The largest
component of non-interest expense was salaries and benefit
expenses. Salaries and benefit expenses were up $195,000
compared to the first quarter 2018 and were up $236,000 compared to
the second quarter 2017. The increase compared to the first
quarter 2018 and the second quarter 2017 was due to annual
performance-related increases in salaries, partially offset by
lower variable based compensation from mortgage production
volume.
Nonperforming asset expenses decreased $378,000 compared to the
first quarter 2018 and increased $241,000 compared to the second
quarter 2017. The second quarter 2017 total was unusually low
due to net gains on sales of foreclosed properties of $321,000,
while net losses were incurred on sales in the second quarter 2018
and first quarter 2018. Additionally, writedowns on other
real estate totaled $11,000 in the second quarter 2018 compared to
$280,000 in first quarter 2018 and $21,000 in second quarter
2017. Other categories of non-interest expense were
relatively flat compared to the first quarter 2018 and the second
quarter 2017.
On December 22, 2017, “H.R.1”, formerly known as the “Tax Cuts
and Jobs Act”, was signed into law. This new tax law, among
other items, reduced the Company’s federal corporate tax rate from
35 percent to 21 percent effective January 1, 2018. Since the
enactment took place in December 2017, the Company revalued
downward its net deferred tax assets in its reporting periods ended
December 31, 2017 resulting in a $2.5 million increase to federal
income tax expense in the fourth quarter 2017.
Federal income tax expense was $1.4 million for the second
quarter 2018 compared to $1.2 million for the first quarter 2018
and $2.1 million for the second quarter 2017. The effective
tax rate was 17.6 percent for the second quarter 2018, compared to
17.6 percent for the first quarter 2018 and 30.9 percent for the
second quarter 2017. The effective tax rate in the first and
second quarters of 2018 reflect the impact of the lower federal
corporate tax rates from the enactment of the Tax Cuts and Jobs Act
at the end of 2017.
Asset QualityAs a result of the consistent
improvements in nonperforming loans and past due loans over the
past several quarters, the continued low historical loan loss
ratios, and net loan recoveries experienced in the second quarter
2018, a negative provision for loan losses of $300,000 was recorded
in the second quarter 2018. Net loan recoveries for the
second quarter 2018 were $320,000, compared to first quarter 2018
net loan recoveries of $175,000 and second quarter 2017 net loan
recoveries of $374,000. The Company has experienced net loan
recoveries in each of the past fourteen quarters. Total loans past
due on payments by 30 days or more amounted to $525,000 at June 30,
2018, down 47 percent from $995,000 at December 31, 2017 and down
36 percent from $815,000 at June 30, 2017. Delinquency as a
percentage of total loans was 0.04 percent at June 30, 2018.
The allowance for loan losses of $16.7 million was 1.26 percent
of total loans at June 30, 2018, compared to 1.26 percent of total
loans at December 31, 2017, and 1.32 percent at June 30,
2017. The coverage ratio of allowance for loan losses to
nonperforming loans continued to be strong and significantly
exceeded 1-to-1 coverage at 134-to-1 as of June 30, 2018.
At June 30, 2018, the Company's nonperforming loans had declined
to $125,000, representing 0.01 percent of total loans. This
compares to $395,000 (0.03 percent of total loans) at December 31,
2017 and $670,000 (0.05 percent of total loans) at June 30,
2017. Other real estate owned and repossessed assets were
$3.9 million at June 30, 2018, compared to $5.8 million at December
31, 2017 and $7.1 million at June 30, 2017. Total nonperforming
assets, including other real estate owned and nonperforming loans,
have decreased by $3.8 million, or 49 percent, from June 30, 2017
to June 30, 2018.
A break-down of non-performing loans is shown in the table
below.
Dollars in 000s |
|
Jun 30, 2018 |
|
Mar 31, 2018 |
|
Dec 31, 2017 |
|
Sept 30, 2017 |
|
Jun 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real
Estate |
|
$ |
121 |
|
$ |
121 |
|
$ |
385 |
|
$ |
440 |
|
$ |
436 |
Commercial and
Industrial |
|
|
2 |
|
|
201 |
|
|
4 |
|
|
4 |
|
|
6 |
Total
Commercial Loans |
|
|
123 |
|
|
322 |
|
|
389 |
|
|
444 |
|
|
442 |
Residential Mortgage
Loans |
|
|
2 |
|
|
2 |
|
|
2 |
|
|
58 |
|
|
206 |
Consumer Loans |
|
|
--- |
|
|
--- |
|
|
4 |
|
|
19 |
|
|
22 |
Total
Non-Performing Loans |
|
$ |
125 |
|
$ |
324 |
|
$ |
395 |
|
$ |
521 |
|
$ |
670 |
Total non-performing assets were $4.0 million, or 0.21 percent
of total assets, at June 30, 2018. A break-down of
non-performing assets is shown in the table below.
Dollars in 000s |
|
Jun 30, 2018 |
|
Mar 31, 2018 |
|
Dec 31, 2017 |
|
Sept 30, 2017 |
|
Jun 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Performing
Loans |
|
$ |
125 |
|
$ |
324 |
|
$ |
395 |
|
$ |
521 |
|
$ |
670 |
Other Repossessed
Assets |
|
|
--- |
|
|
--- |
|
|
11 |
|
|
--- |
|
|
--- |
Other Real Estate
Owned |
|
|
3,872 |
|
|
5,223 |
|
|
5,767 |
|
|
6,661 |
|
|
7,097 |
Total
Non-Performing Assets |
|
$ |
3,997 |
|
$ |
5,547 |
|
$ |
6,173 |
|
$ |
7,182 |
|
$ |
7,767 |
Balance Sheet, Liquidity and CapitalTotal
assets were $1.87 billion at June 30, 2018, an increase of $8.8
million from $1.86 billion at March 31, 2018 and an increase of
$113.5 million from $1.76 billion at June 30, 2017. Total
loans were $1.33 billion at June 30, 2018, an increase of $2.1
million from $1.33 billion at March 31, 2018 and an increase of
$76.3 million from $1.25 billion at June 30, 2017.
Commercial loans increased by $55.7 million from June 30, 2017
to June 30, 2018, along with an increase of $25.7 million in our
residential mortgage portfolio, partially offset by a decrease of
$5.1 million in our consumer loan portfolio. Commercial real
estate loans increased by $32.5 million while commercial and
industrial loans increased by $23.3 million during the same
period.
The composition of the commercial loan portfolio is shown in the
table below:
Dollars in 000s |
|
Jun 30, 2018 |
|
Mar 31, 2018 |
|
Dec 31, 2017 |
|
Sept 30, 2017 |
|
Jun 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and
Development |
|
$ |
85,193 |
|
$ |
81,948 |
|
$ |
92,241 |
|
$ |
84,659 |
|
$ |
82,317 |
Other Commercial Real
Estate |
|
|
461,808 |
|
|
447,922 |
|
|
449,694 |
|
|
445,703 |
|
|
432,223 |
Commercial Loans Securedby Real Estate |
|
|
547,001 |
|
|
529,870 |
|
|
541,935 |
|
|
530,362 |
|
|
514,540 |
Commercial and
Industrial |
|
|
458,468 |
|
|
477,088 |
|
|
465,208 |
|
|
418,838 |
|
|
435,218 |
Total
Commercial Loans |
|
$ |
1,005,469 |
|
$ |
1,006,958 |
|
$ |
1,007,143 |
|
$ |
949,200 |
|
$ |
949,758 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bond financing to commercial customers increased by $14.1
million from June 30, 2017 to June 30, 2018. This financing
combined with the loan portfolio led to a total growth rate of 7
percent from June 30, 2017 to June 30, 2018.
Total deposits were $1.58 billion at June 30, 2018, up $19.6
million from $1.56 billion at March 31, 2018 and were up $120.5
million, or 8 percent, from $1.46 billion at June 30, 2017.
Demand deposits, money market deposits, savings deposits and
certificates of deposit were all up in the second quarter 2018
compared to March 31, 2018 and June 30, 2017. The Bank
continues to be successful at attracting and retaining core deposit
customers. Customer deposit accounts remain insured to the
highest levels available under FDIC deposit insurance.
The Bank's risk-based regulatory capital ratios were higher at
June 30, 2018 compared to March 31, 2018 and June 30, 2017 due to
earnings growth, and continue to be at levels comfortably above
those required to be categorized as “well capitalized” under
applicable regulatory capital guidelines. As such, the Bank
was categorized as "well capitalized" at June 30, 2018.
About Macatawa BankHeadquartered in Holland,
Mich., Macatawa Bank offers a full range of banking, retail and
commercial lending, wealth management and ecommerce services to
individuals, businesses and governmental entities from a network of
26 full-service branches located throughout communities in Kent,
Ottawa and northern Allegan counties. The bank is recognized
for its local management team and decision making, along with
providing customers excellent service, a rewarding experience and
superior financial products. Macatawa Bank has been recognized for
the past eight consecutive years as one of “West Michigan’s 101
Best and Brightest Companies to Work For”. For more information,
visit www.macatawabank.com.
CAUTIONARY STATEMENT: This press release
contains forward-looking statements that are based on management's
current beliefs, expectations, assumptions, estimates, plans and
intentions. Forward-looking statements are identifiable by
words or phrases such as “anticipates,” "believe," "expect," "may,"
"should," "will," ”intend,” "continue," "improving," "additional,"
"focus," "forward," "future," "efforts," "strategy," "momentum,"
"positioned," and other similar words or phrases. Such
statements are based upon current beliefs and expectations and
involve substantial risks and uncertainties which could cause
actual results to differ materially from those expressed or implied
by such forward-looking statements. These statements include,
among others, statements related to trends in our key operating
metrics and financial performance, future levels of earnings and
profitability, future levels of earning assets, future asset
quality, future growth, and future net interest margin. All
statements with references to future time periods are
forward-looking. Management's determination of the provision
and allowance for loan losses, the appropriate carrying value of
intangible assets (including deferred tax assets) and other real
estate owned and the fair value of investment securities (including
whether any impairment on any investment security is temporary or
other-than-temporary and the amount of any impairment) involves
judgments that are inherently forward-looking. Our ability to sell
other real estate owned at its carrying value or at all, reduce
non-performing asset expenses, utilize our deferred tax asset,
reduce future tax liabilities, successfully implement new programs
and initiatives, increase efficiencies, maintain our current level
of deposits and other sources of funding, maintain liquidity,
respond to declines in collateral values and credit quality,
improve profitability, and produce consistent core earnings is not
entirely within our control and is not assured. The future
effect of changes in the real estate, financial and credit markets
and the national and regional economy on the banking industry,
generally, and Macatawa Bank Corporation, specifically, are also
inherently uncertain. These statements are not guarantees of
future performance and involve certain risks, uncertainties and
assumptions ("risk factors") 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 in or implied by such
forward-looking statements. Macatawa Bank Corporation does not
undertake to update forward-looking statements to reflect the
impact of circumstances or events that may arise after the date of
the forward-looking statements.
Risk factors include, but are not limited to,
the risk factors described in "Item 1A - Risk Factors" of our
Annual Report on Form 10-K for the year ended December 31,
2017. These and other factors are representative of the risk
factors that may emerge and could cause a difference between an
ultimate actual outcome and a preceding forward-looking
statement.
MACATAWA BANK CORPORATION |
CONSOLIDATED FINANCIAL SUMMARY |
(Unaudited) |
(Dollars in thousands except per share
information) |
|
|
|
|
|
Quarterly |
|
Six Months Ended |
|
2nd Qtr |
|
|
1st Qtr |
|
|
2nd Qtr |
|
|
June 30 |
EARNINGS
SUMMARY |
2018 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Total interest
income |
$ |
16,836 |
|
|
$ |
16,019 |
|
|
$ |
14,042 |
|
|
$ |
32,855 |
|
|
$ |
27,890 |
|
Total interest
expense |
2,183 |
|
|
1,837 |
|
|
1,337 |
|
|
4,019 |
|
|
2,602 |
|
Net
interest income |
14,653 |
|
|
14,182 |
|
|
12,705 |
|
|
28,836 |
|
|
25,288 |
|
Provision for loan
losses |
(300 |
) |
|
(100 |
) |
|
(500 |
) |
|
(400 |
) |
|
(1,000 |
) |
Net
interest income after provision for loan losses |
14,953 |
|
|
14,282 |
|
|
13,205 |
|
|
29,236 |
|
|
26,288 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit service
charges |
1,060 |
|
|
1,049 |
|
|
1,110 |
|
|
2,110 |
|
|
2,170 |
|
Net gains on mortgage
loans |
222 |
|
|
141 |
|
|
476 |
|
|
363 |
|
|
904 |
|
Trust fees |
945 |
|
|
925 |
|
|
833 |
|
|
1,870 |
|
|
1,611 |
|
Other |
2,241 |
|
|
2,017 |
|
|
2,059 |
|
|
4,256 |
|
|
4,024 |
|
Total
non-interest income |
4,468 |
|
|
4,132 |
|
|
4,478 |
|
|
8,599 |
|
|
8,709 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits |
6,389 |
|
|
6,194 |
|
|
6,153 |
|
|
12,583 |
|
|
12,152 |
|
Occupancy |
973 |
|
|
1,072 |
|
|
991 |
|
|
2,045 |
|
|
2,017 |
|
Furniture and
equipment |
773 |
|
|
805 |
|
|
750 |
|
|
1,578 |
|
|
1,482 |
|
FDIC assessment |
132 |
|
|
132 |
|
|
134 |
|
|
264 |
|
|
270 |
|
Problem asset costs,
including losses and (gains) |
83 |
|
|
461 |
|
|
(158 |
) |
|
544 |
|
|
(63 |
) |
Other |
2,909 |
|
|
2,770 |
|
|
2,922 |
|
|
5,679 |
|
|
5,821 |
|
Total
non-interest expense |
11,259 |
|
|
11,434 |
|
|
10,792 |
|
|
22,693 |
|
|
21,679 |
|
Income before income
tax |
8,162 |
|
|
6,980 |
|
|
6,891 |
|
|
15,142 |
|
|
13,318 |
|
Income tax expense |
1,434 |
|
|
1,225 |
|
|
2,129 |
|
|
2,659 |
|
|
4,095 |
|
Net
income |
$ |
6,728 |
|
|
$ |
5,755 |
|
|
$ |
4,762 |
|
|
$ |
12,483 |
|
|
$ |
9,223 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share |
$ |
0.20 |
|
|
$ |
0.17 |
|
|
$ |
0.14 |
|
|
$ |
0.37 |
|
|
$ |
0.27 |
|
Diluted earnings per
common share |
$ |
0.20 |
|
|
$ |
0.17 |
|
|
$ |
0.14 |
|
|
$ |
0.37 |
|
|
$ |
0.27 |
|
Return on average
assets |
1.44% |
|
|
1.25% |
|
|
1.11% |
|
|
1.34% |
|
|
1.08% |
|
Return on average
equity |
15.23% |
|
|
13.24% |
|
|
11.32% |
|
|
14.24% |
|
|
11.09% |
|
Net interest margin
(fully taxable equivalent) |
3.37% |
|
|
3.34% |
|
|
3.24% |
|
|
3.35% |
|
|
3.25% |
|
Efficiency ratio |
58.88% |
|
|
62.43% |
|
|
62.81% |
|
|
60.62% |
|
|
63.77% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET
DATA |
|
|
|
|
|
|
June 30 |
|
|
March 31 |
|
|
June 30 |
|
Assets |
|
|
|
|
|
|
2018 |
|
|
2018 |
|
|
2017 |
|
Cash and due from
banks |
|
|
|
|
|
|
$ |
37,105 |
|
|
$ |
26,954 |
|
|
$ |
31,165 |
|
Federal funds sold and
other short-term investments |
|
|
|
|
|
|
107,416 |
|
|
103,898 |
|
|
114,104 |
|
Debt securities
available for sale |
|
|
|
|
|
|
218,770 |
|
|
214,269 |
|
|
183,283 |
|
Debt securities held to
maturity |
|
|
|
|
|
|
79,569 |
|
|
90,513 |
|
|
68,818 |
|
Federal Home Loan Bank
Stock |
|
|
|
|
|
|
11,558 |
|
|
11,558 |
|
|
11,558 |
|
Loans held for
sale |
|
|
|
|
|
|
61 |
|
|
- |
|
|
3,184 |
|
Total loans |
|
|
|
|
|
|
1,327,686 |
|
|
1,325,545 |
|
|
1,251,355 |
|
Less allowance for loan
loss |
|
|
|
|
|
|
16,695 |
|
|
16,675 |
|
|
16,570 |
|
Net
loans |
|
|
|
|
|
|
1,310,991 |
|
|
1,308,870 |
|
|
1,234,785 |
|
Premises and equipment,
net |
|
|
|
|
|
|
45,907 |
|
|
46,110 |
|
|
48,626 |
|
Bank-owned life
insurance |
|
|
|
|
|
|
40,744 |
|
|
40,494 |
|
|
39,781 |
|
Other real estate
owned |
|
|
|
|
|
|
3,872 |
|
|
5,223 |
|
|
7,097 |
|
Other assets |
|
|
|
|
|
|
16,548 |
|
|
15,891 |
|
|
16,662 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets |
|
|
|
|
|
|
$ |
1,872,541 |
|
|
$ |
1,863,780 |
|
|
$ |
1,759,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits |
|
|
|
|
|
|
$ |
496,605 |
|
|
$ |
453,993 |
|
|
$ |
481,769 |
|
Interest-bearing
deposits |
|
|
|
|
|
|
1,083,856 |
|
|
1,106,879 |
|
|
978,221 |
|
Total
deposits |
|
|
|
|
|
|
1,580,461 |
|
|
1,560,872 |
|
|
1,459,990 |
|
Other borrowed
funds |
|
|
|
|
|
|
65,667 |
|
|
80,667 |
|
|
82,785 |
|
Long-term debt |
|
|
|
|
|
|
41,238 |
|
|
41,238 |
|
|
41,238 |
|
Other liabilities |
|
|
|
|
|
|
5,461 |
|
|
5,627 |
|
|
4,875 |
|
Total
Liabilities |
|
|
|
|
|
|
1,692,827 |
|
|
1,688,404 |
|
|
1,588,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity |
|
|
|
|
|
|
179,714 |
|
|
175,376 |
|
|
170,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
$ |
1,872,541 |
|
|
$ |
1,863,780 |
|
|
$ |
1,759,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MACATAWA BANK CORPORATION |
SELECTED CONSOLIDATED FINANCIAL
DATA |
(Unaudited) |
(Dollars in thousands except per share
information) |
|
|
Quarterly |
|
Year to Date |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2nd Qtr |
|
|
1st Qtr |
|
|
4th Qtr |
|
|
3rd Qtr |
|
|
2nd Qtr |
|
|
|
|
|
|
|
|
2018 |
|
|
2018 |
|
|
2017 |
|
|
2017 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
EARNINGS
SUMMARY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
$ |
14,653 |
|
|
$ |
14,182 |
|
|
$ |
13,517 |
|
|
$ |
13,138 |
|
|
$ |
12,705 |
|
|
$ |
28,836 |
|
|
$ |
25,288 |
|
Provision for loan
losses |
(300 |
) |
|
(100 |
) |
|
- |
|
|
(350 |
) |
|
(500 |
) |
|
(400 |
) |
|
(1,000 |
) |
Total non-interest
income |
4,468 |
|
|
4,132 |
|
|
4,410 |
|
|
4,300 |
|
|
4,478 |
|
|
8,599 |
|
|
8,709 |
|
Total non-interest
expense |
11,259 |
|
|
11,434 |
|
|
11,253 |
|
|
10,756 |
|
|
10,792 |
|
|
22,693 |
|
|
21,679 |
|
Federal income tax
expense |
1,434 |
|
|
1,225 |
|
|
4,480 |
|
|
2,157 |
|
|
2,129 |
|
|
2,659 |
|
|
4,095 |
|
Net income |
$ |
6,728 |
|
|
$ |
5,755 |
|
|
$ |
2,194 |
|
|
$ |
4,875 |
|
|
$ |
4,762 |
|
|
$ |
12,483 |
|
|
$ |
9,223 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share |
$ |
0.20 |
|
|
$ |
0.17 |
|
|
$ |
0.06 |
|
|
$ |
0.14 |
|
|
$ |
0.14 |
|
|
$ |
0.37 |
|
|
$ |
0.27 |
|
Diluted earnings per
common share |
$ |
0.20 |
|
|
$ |
0.17 |
|
|
$ |
0.06 |
|
|
$ |
0.14 |
|
|
$ |
0.14 |
|
|
$ |
0.37 |
|
|
$ |
0.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARKET
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share |
$ |
5.28 |
|
|
$ |
5.16 |
|
|
$ |
5.10 |
|
|
$ |
5.11 |
|
|
$ |
5.01 |
|
|
$ |
5.28 |
|
|
$ |
5.01 |
|
Tangible book value per
common share |
$ |
5.28 |
|
|
$ |
5.16 |
|
|
$ |
5.10 |
|
|
$ |
5.11 |
|
|
$ |
5.01 |
|
|
$ |
5.28 |
|
|
$ |
5.01 |
|
Market value per common
share |
$ |
12.14 |
|
|
$ |
10.27 |
|
|
$ |
10.00 |
|
|
$ |
10.26 |
|
|
$ |
9.54 |
|
|
$ |
12.14 |
|
|
$ |
9.54 |
|
Average basic common
shares |
34,016,679 |
|
|
34,010,396 |
|
|
33,958,992 |
|
|
33,942,248 |
|
|
33,942,318 |
|
|
34,013,555 |
|
|
33,941,668 |
|
Average diluted common
shares |
34,016,679 |
|
|
34,011,592 |
|
|
33,965,344 |
|
|
33,947,269 |
|
|
33,948,127 |
|
|
34,014,152 |
|
|
33,948,371 |
|
Period end common
shares |
34,014,319 |
|
|
34,017,525 |
|
|
33,972,977 |
|
|
33,941,953 |
|
|
33,938,486 |
|
|
34,014,319 |
|
|
33,938,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE
RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets |
1.44 |
% |
|
1.25 |
% |
|
0.49 |
% |
|
1.10 |
% |
|
1.11 |
% |
|
1.34 |
% |
|
1.08 |
% |
Return on average
equity |
15.23 |
% |
|
13.24 |
% |
|
5.03 |
% |
|
11.34 |
% |
|
11.32 |
% |
|
14.24 |
% |
|
11.09 |
% |
Net interest margin
(fully taxable equivalent) |
3.37 |
% |
|
3.34 |
% |
|
3.25 |
% |
|
3.21 |
% |
|
3.24 |
% |
|
3.35 |
% |
|
3.25 |
% |
Efficiency ratio |
58.88 |
% |
|
62.43 |
% |
|
62.77 |
% |
|
61.68 |
% |
|
62.81 |
% |
|
60.62 |
% |
|
63.77 |
% |
Full-time equivalent
employees (period end) |
339 |
|
|
332 |
|
|
340 |
|
|
343 |
|
|
344 |
|
|
339 |
|
|
344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross charge-offs |
$ |
30 |
|
|
$ |
97 |
|
|
$ |
45 |
|
|
$ |
55 |
|
|
$ |
139 |
|
|
$ |
126 |
|
|
$ |
165 |
|
Net
charge-offs/(recoveries) |
$ |
(320 |
) |
|
$ |
(175 |
) |
|
$ |
(166 |
) |
|
$ |
(214 |
) |
|
$ |
(374 |
) |
|
$ |
(495 |
) |
|
$ |
(608 |
) |
Net charge-offs to
average loans (annualized) |
-0.10% |
|
|
-0.05% |
|
|
-0.05% |
|
|
-0.07% |
|
|
-0.12% |
|
|
-0.07% |
|
|
-0.10% |
|
Nonperforming
loans |
$ |
125 |
|
|
$ |
324 |
|
|
$ |
395 |
|
|
$ |
521 |
|
|
$ |
670 |
|
|
$ |
125 |
|
|
$ |
670 |
|
Other real estate and
repossessed assets |
$ |
3,872 |
|
|
$ |
5,223 |
|
|
$ |
5,778 |
|
|
$ |
6,661 |
|
|
$ |
7,097 |
|
|
$ |
3,872 |
|
|
$ |
7,097 |
|
Nonperforming loans to
total loans |
0.01 |
% |
|
0.02 |
% |
|
0.03 |
% |
|
0.04 |
% |
|
0.05 |
% |
|
0.01 |
% |
|
0.05 |
% |
Nonperforming assets to
total assets |
0.21 |
% |
|
0.30 |
% |
|
0.33 |
% |
|
0.40 |
% |
|
0.44 |
% |
|
0.21 |
% |
|
0.44 |
% |
Allowance for loan
losses |
$ |
16,695 |
|
|
$ |
16,675 |
|
|
$ |
16,600 |
|
|
$ |
16,434 |
|
|
$ |
16,570 |
|
|
$ |
16,695 |
|
|
$ |
16,570 |
|
Allowance for loan
losses to total loans |
1.26 |
% |
|
1.26 |
% |
|
1.26 |
% |
|
1.30 |
% |
|
1.32 |
% |
|
1.26 |
% |
|
1.32 |
% |
Allowance for loan
losses to nonperforming loans |
13356.00 |
% |
|
5146.60 |
% |
|
4202.53 |
% |
|
3154.32 |
% |
|
2473.13 |
% |
|
13356.00 |
% |
|
2473.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average equity to
average assets |
9.44 |
% |
|
9.42 |
% |
|
9.68 |
% |
|
9.69 |
% |
|
9.76 |
% |
|
9.44 |
% |
|
9.76 |
% |
Common equity tier 1 to
risk weighted assets (Consolidated) |
11.83 |
% |
|
11.67 |
% |
|
11.31 |
% |
|
11.70 |
% |
|
11.60 |
% |
|
11.83 |
% |
|
11.60 |
% |
Tier 1 capital to
average assets (Consolidated) |
11.91 |
% |
|
11.83 |
% |
|
11.88 |
% |
|
12.04 |
% |
|
12.21 |
% |
|
11.91 |
% |
|
12.21 |
% |
Total capital to
risk-weighted assets (Consolidated) |
15.49 |
% |
|
15.36 |
% |
|
14.99 |
% |
|
15.50 |
% |
|
15.45 |
% |
|
15.49 |
% |
|
15.45 |
% |
Common equity tier 1 to
risk weighted assets (Bank) |
14.01 |
% |
|
13.87 |
% |
|
13.54 |
% |
|
13.99 |
% |
|
13.89 |
% |
|
14.01 |
% |
|
13.89 |
% |
Tier 1 capital to
average assets (Bank) |
11.58 |
% |
|
11.50 |
% |
|
11.56 |
% |
|
11.72 |
% |
|
11.87 |
% |
|
11.58 |
% |
|
11.87 |
% |
Total capital to
risk-weighted assets (Bank) |
15.09 |
% |
|
14.96 |
% |
|
14.62 |
% |
|
15.10 |
% |
|
15.02 |
% |
|
15.09 |
% |
|
15.02 |
% |
Tangible common equity
to assets |
9.60 |
% |
|
9.42 |
% |
|
9.15 |
% |
|
9.63 |
% |
|
9.70 |
% |
|
9.60 |
% |
|
9.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
END OF PERIOD
BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total portfolio
loans |
$ |
1,327,686 |
|
|
$ |
1,325,545 |
|
|
$ |
1,320,309 |
|
|
$ |
1,260,037 |
|
|
$ |
1,251,355 |
|
|
$ |
1,327,686 |
|
|
$ |
1,251,355 |
|
Earning assets |
1,751,167 |
|
|
1,751,315 |
|
|
1,767,752 |
|
|
1,680,458 |
|
|
1,633,383 |
|
|
1,751,167 |
|
|
1,633,383 |
|
Total assets |
1,872,541 |
|
|
1,863,780 |
|
|
1,890,232 |
|
|
1,803,046 |
|
|
1,759,063 |
|
|
1,872,541 |
|
|
1,759,063 |
|
Deposits |
1,580,461 |
|
|
1,560,872 |
|
|
1,579,010 |
|
|
1,506,178 |
|
|
1,459,990 |
|
|
1,580,461 |
|
|
1,459,990 |
|
Total shareholders'
equity |
179,714 |
|
|
175,376 |
|
|
172,986 |
|
|
173,464 |
|
|
170,175 |
|
|
179,714 |
|
|
170,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE
BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total portfolio
loans |
$ |
1,327,408 |
|
|
$ |
1,314,838 |
|
|
$ |
1,285,688 |
|
|
$ |
1,252,075 |
|
|
$ |
1,260,051 |
|
|
$ |
1,321,158 |
|
|
$ |
1,262,430 |
|
Earning assets |
1,756,909 |
|
|
1,730,576 |
|
|
1,681,297 |
|
|
1,652,028 |
|
|
1,594,849 |
|
|
1,743,815 |
|
|
1,587,345 |
|
Total assets |
1,872,559 |
|
|
1,845,911 |
|
|
1,802,386 |
|
|
1,775,302 |
|
|
1,723,575 |
|
|
1,859,309 |
|
|
1,715,156 |
|
Deposits |
1,575,408 |
|
|
1,537,376 |
|
|
1,497,213 |
|
|
1,481,539 |
|
|
1,419,775 |
|
|
1,556,497 |
|
|
1,408,747 |
|
Total shareholders'
equity |
176,749 |
|
|
173,913 |
|
|
174,427 |
|
|
171,987 |
|
|
168,240 |
|
|
175,339 |
|
|
166,289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact:
Jon Swets, CFO
616-494-7645
Macatawa Bank (NASDAQ:MCBC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Macatawa Bank (NASDAQ:MCBC)
Historical Stock Chart
From Apr 2023 to Apr 2024