Macatawa Bank Corporation (NASDAQ: MCBC) today announced its
results for the third quarter of 2018, reflecting continued strong
financial performance.
- Net income of $6.9 million in third quarter 2018 versus $4.9
million in third quarter 2017 – up 41%
- Growth in net interest income primary driver of earnings
improvement – up 15% from third quarter 2017
- Loan portfolio balances and bond financing to businesses up by
$98.7 million (8%), from September 30, 2017
- Core deposit balances up by $111.6 million (7%), from September
30, 2017
- Asset quality metrics remained strong
Macatawa reported net income of $6.9 million, or $0.20 per
diluted share, in the third quarter 2018 compared to $4.9 million,
or $0.14 per diluted share, in the third quarter 2017. For
the first nine months of 2018, Macatawa reported net income of
$19.3 million, or $0.57 per diluted share, compared to $14.1
million, or $0.42 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.
"Operating trends noted in the first half of the year continued
and strengthened into the third 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
third quarter of 2017. 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 less than 5 percent and have been on a decreasing trend
throughout 2018.”
Mr. Haan concluded: "We remain committed to providing
excellent financial services while operating a well-disciplined
company that delivers strong and consistent financial performance
for our shareholders. These results demonstrate that Macatawa
Bank Corporation remains well-positioned for continued growth and
success as we finish out 2018 and move into 2019.”
Operating ResultsNet interest
income for the third quarter 2018 totaled $15.2 million, an
increase of $509,000 from the second quarter 2018 and an increase
of $2.0 million from the third quarter 2017. Net interest
margin was 3.37 percent, and was unchanged from the second quarter
2018, and up 16 basis points from the third quarter 2017.
Average interest earning assets for the third quarter 2018
increased $42.7 million from the second quarter 2018 and were up
$147.6 million from the third quarter 2017. This growth along
with increases in yields on interest earning assets, primarily
commercial loan yields, were the main contributors to the
improvement in net interest income.
Non-interest income increased $31,000 in the third quarter 2018
compared to the second quarter 2018 and increased $199,000 from the
third quarter 2017. The increase from third quarter 2017 was
due primarily to a net loss of $176,000 recognized in the third
quarter 2017 on the sale of property in southwest Grand Rapids
(Metro Village). Gains on sales of mortgage loans continued
its downward trend as overall mortgage volume was down in recent
quarters, due primarily to increased market rates as well as
shortage of housing inventory. The Bank has also continued to
experience a shift in more origination volume being held in
portfolio as customers choose adjustable rate mortgage loans versus
longer term fixed rate products. The Bank holds adjustable
rate mortgages in its portfolio and sells long-term fixed rate
mortgages into the secondary market in order to appropriately
manage the Bank’s interest rate risk. For the nine month
period ended September 30, 2018, gains on sales were down 50
percent compared to the same period in 2017 as volumes were higher
in the early part of 2017. Other categories of non-interest
income were relatively consistent from quarter to quarter.
Non-interest expense was $11.2 million for the third quarter
2018, compared to $11.3 million for the second quarter 2018 and
$10.8 million for the third quarter 2017. The largest
component of non-interest expense was salaries and benefit
expenses. Salaries and benefit expenses were down $29,000
compared to the second quarter 2018 and were up $149,000 compared
to the third quarter 2017. The increase compared to the third
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 increased $25,000 compared to the
second quarter 2018 and increased $185,000 compared to the third
quarter 2017. The third quarter 2017 total was unusually low
due to net gains on sales of foreclosed properties of $190,000,
while net losses were incurred on sales in the third quarter 2018
and second quarter 2018. Additionally, there were no
writedowns on other real estate in the third quarter 2018 compared
to $11,000 in second quarter 2018 and no writedowns in third
quarter 2017. Other categories of non-interest expense were
relatively consistent compared to the second quarter 2018 and the
third 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 $1.6 million for the third
quarter 2018 compared to $1.4 million for the second quarter 2018
and $2.2 million for the third quarter 2017. The effective
tax rate was 18.6 percent for the third quarter 2018, compared to
17.6 percent for the second quarter 2018 and 30.7 percent for the
third quarter 2017. The effective tax rate in the 2018
periods 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 third quarter
2018, no provision for loan losses was recorded in the third
quarter 2018. Net loan recoveries for the third quarter 2018
were $108,000, compared to second quarter 2018 net loan recoveries
of $320,000 and third quarter 2017 net loan recoveries of
$214,000. The Company has experienced net loan recoveries in
each of the past fifteen quarters. Total loans past due on payments
by 30 days or more amounted to $492,000 at September 30, 2018, down
6 percent from $525,000 at June 30, 2018 and down 44 percent from
$872,000 at September 30, 2017. Delinquency as a percentage
of total loans was 0.04 percent at September 30, 2018.
The allowance for loan losses of $16.8 million was 1.25 percent
of total loans at September 30, 2018, compared to 1.26 percent of
total loans at June 30, 2018, and 1.30 percent at September 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 137-to-1 as of September 30, 2018.
At September 30, 2018, the Company's nonperforming loans had
declined to $123,000, representing 0.01 percent of total
loans. This compares to $125,000 (0.01 percent of total
loans) at June 30, 2018 and $521,000 (0.04 percent of total loans)
at September 30, 2017. Other real estate owned and
repossessed assets were $3.5 million at September 30, 2018,
compared to $3.9 million at June 30, 2018 and $6.7 million at
September 30, 2017. Total nonperforming assets, including other
real estate owned and nonperforming loans, have decreased by $3.6
million, or 50 percent, from September 30, 2017 to September 30,
2018.
A break-down of non-performing loans is shown in the table
below.
Dollars in 000s |
|
Sept 30, 2018 |
|
Jun 30, 2018 |
|
Mar 31, 2018 |
|
Dec 31, 2017 |
|
Sept 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate |
|
$ |
121 |
|
$ |
121 |
|
$ |
121 |
|
$ |
385 |
|
$ |
440 |
|
Commercial and Industrial |
|
|
--- |
|
|
2 |
|
|
201 |
|
|
4 |
|
|
4 |
|
Total Commercial Loans |
|
|
121 |
|
|
123 |
|
|
322 |
|
|
389 |
|
|
444 |
|
Residential Mortgage Loans |
|
|
2 |
|
|
2 |
|
|
2 |
|
|
2 |
|
|
58 |
|
Consumer Loans |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
4 |
|
|
19 |
|
Total Non-Performing Loans |
|
$ |
123 |
|
$ |
125 |
|
$ |
324 |
|
$ |
395 |
|
$ |
521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-performing assets were $3.6 million, or 0.19 percent
of total assets, at September 30, 2018. A break-down of
non-performing assets is shown in the table below.
Dollars in 000s |
|
Sept 30, 2018 |
|
Jun 30, 2018 |
|
Mar 31, 2018 |
|
Dec 31, 2017 |
|
Sept 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Performing Loans |
|
$ |
123 |
|
$ |
125 |
|
$ |
324 |
|
$ |
395 |
|
$ |
521 |
|
Other Repossessed Assets |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
11 |
|
|
--- |
|
Other Real Estate Owned |
|
|
3,465 |
|
|
3,872 |
|
|
5,223 |
|
|
5,767 |
|
|
6,661 |
|
Total Non-Performing Assets |
|
$ |
3,588 |
|
$ |
3,997 |
|
$ |
5,547 |
|
$ |
6,173 |
|
$ |
7,182 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet, Liquidity and CapitalTotal
assets were $1.92 billion at September 30, 2018, an increase of
$46.7 million from $1.87 billion at June 30, 2018 and an increase
of $116.2 million from $1.80 billion at September 30, 2017.
Total loans were $1.34 billion at September 30, 2018, an
increase of $17.0 million from $1.33 billion at June 30, 2018 and
an increase of $84.6 million from $1.26 billion at September 30,
2017.
Commercial loans increased by $71.4 million from September 30,
2017 to September 30, 2018, along with an increase of $15.3 million
in our residential mortgage portfolio, partially offset by a
decrease of $2.1 million in our consumer loan portfolio.
Commercial real estate loans increased by $22.6 million while
commercial and industrial loans increased by $48.9 million during
the same period.
The composition of the commercial loan portfolio is shown in the
table below:
Dollars in 000s |
|
Sept 30, 2018 |
|
Jun 30, 2018 |
|
Mar 31, 2018 |
|
Dec 31, 2017 |
|
Sept 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and Development |
|
$ |
93,794 |
|
$ |
85,193 |
|
$ |
81,948 |
|
$ |
92,241 |
|
$ |
84,659 |
|
Other Commercial Real Estate |
|
|
459,146 |
|
|
461,808 |
|
|
447,922 |
|
|
449,694 |
|
|
445,703 |
|
Commercial Loans Secured by Real Estate |
|
|
552,940 |
|
|
547,001 |
|
|
529,870 |
|
|
541,935 |
|
|
530,362 |
|
Commercial and Industrial |
|
|
467,703 |
|
|
458,468 |
|
|
477,088 |
|
|
465,208 |
|
|
418,838 |
|
Total Commercial Loans |
|
$ |
1,020,643 |
|
$ |
1,005,469 |
|
$ |
1,006,958 |
|
$ |
1,007,143 |
|
$ |
949,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bond financing to commercial customers increased by $14.1
million from September 30, 2017 to September 30, 2018. This
financing combined with the loan portfolio led to a total growth
rate of 8 percent from September 30, 2017 to September 30,
2018.
Total deposits were $1.62 billion at September 30, 2018, up
$37.3 million from $1.58 billion at June 30, 2018 and were up
$111.6 million, or 7 percent, from $1.51 billion at September 30,
2017. Demand deposits, money market deposits and certificates
of deposit were all up in the third quarter 2018 compared to June
30, 2018 and September 30, 2017, while savings accounts were down
in the third quarter 2018 compared to June 30, 2018 and were up
compared to September 30, 2017. The Bank continues to be
successful at attracting and retaining core deposit customers,
lessening its reliance on wholesale funding sources. 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
September 30, 2018 compared to June 30, 2018 and September 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 September 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 |
|
Nine Months Ended |
|
|
|
|
|
|
3rd Qtr |
|
2nd Qtr |
|
3rd Qtr |
|
September 30 |
EARNINGS
SUMMARY |
|
|
|
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Total interest
income |
|
|
|
|
|
$ |
17,687 |
|
|
$ |
16,836 |
|
|
$ |
14,626 |
|
|
$ |
50,542 |
|
|
$ |
42,516 |
|
Total interest
expense |
|
|
|
|
|
|
2,525 |
|
|
|
2,183 |
|
|
|
1,488 |
|
|
|
6,544 |
|
|
|
4,090 |
|
Net
interest income |
|
|
|
|
|
|
15,162 |
|
|
|
14,653 |
|
|
|
13,138 |
|
|
|
43,998 |
|
|
|
38,426 |
|
Provision for loan
losses |
|
|
|
|
|
|
- |
|
|
|
(300 |
) |
|
|
(350 |
) |
|
|
(400 |
) |
|
|
(1,350 |
) |
Net
interest income after provision for loan losses |
|
|
|
|
|
|
15,162 |
|
|
|
14,953 |
|
|
|
13,488 |
|
|
|
44,398 |
|
|
|
39,776 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit service
charges |
|
|
|
|
|
|
1,132 |
|
|
|
1,060 |
|
|
|
1,172 |
|
|
|
3,242 |
|
|
|
3,342 |
|
Net gains on mortgage
loans |
|
|
|
|
|
|
270 |
|
|
|
222 |
|
|
|
369 |
|
|
|
633 |
|
|
|
1,273 |
|
Trust fees |
|
|
|
|
|
|
889 |
|
|
|
945 |
|
|
|
801 |
|
|
|
2,759 |
|
|
|
2,412 |
|
Other |
|
|
|
|
|
|
2,208 |
|
|
|
2,241 |
|
|
|
1,958 |
|
|
|
6,464 |
|
|
|
5,982 |
|
Total
non-interest income |
|
|
|
|
|
|
4,499 |
|
|
|
4,468 |
|
|
|
4,300 |
|
|
|
13,098 |
|
|
|
13,009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits |
|
|
|
|
|
|
6,360 |
|
|
|
6,389 |
|
|
|
6,211 |
|
|
|
18,942 |
|
|
|
18,363 |
|
Occupancy |
|
|
|
|
|
|
939 |
|
|
|
973 |
|
|
|
922 |
|
|
|
2,984 |
|
|
|
2,939 |
|
Furniture and
equipment |
|
|
|
|
|
|
760 |
|
|
|
773 |
|
|
|
797 |
|
|
|
2,338 |
|
|
|
2,278 |
|
FDIC assessment |
|
|
|
|
|
|
127 |
|
|
|
132 |
|
|
|
134 |
|
|
|
391 |
|
|
|
404 |
|
Problem asset costs,
including losses and (gains) |
|
|
|
|
|
|
108 |
|
|
|
83 |
|
|
|
(77 |
) |
|
|
652 |
|
|
|
(140 |
) |
Other |
|
|
|
|
|
|
2,945 |
|
|
|
2,909 |
|
|
|
2,769 |
|
|
|
8,625 |
|
|
|
8,590 |
|
Total
non-interest expense |
|
|
|
|
|
|
11,239 |
|
|
|
11,259 |
|
|
|
10,756 |
|
|
|
33,932 |
|
|
|
32,434 |
|
Income before income
tax |
|
|
|
|
|
|
8,422 |
|
|
|
8,162 |
|
|
|
7,032 |
|
|
|
23,564 |
|
|
|
20,351 |
|
Income tax expense |
|
|
|
|
|
|
1,570 |
|
|
|
1,434 |
|
|
|
2,157 |
|
|
|
4,228 |
|
|
|
6,253 |
|
Net
income |
|
|
|
|
|
$ |
6,852 |
|
|
$ |
6,728 |
|
|
$ |
4,875 |
|
|
$ |
19,336 |
|
|
$ |
14,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share |
|
|
|
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.14 |
|
|
$ |
0.57 |
|
|
$ |
0.42 |
|
Diluted earnings per
common share |
|
|
|
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.14 |
|
|
$ |
0.57 |
|
|
$ |
0.42 |
|
Return on average
assets |
|
|
|
|
|
|
1.43 |
% |
|
|
1.44 |
% |
|
|
1.10 |
% |
|
|
1.37 |
% |
|
|
1.08 |
% |
Return on average
equity |
|
|
|
|
|
|
15.12 |
% |
|
|
15.23 |
% |
|
|
11.34 |
% |
|
|
14.54 |
% |
|
|
11.17 |
% |
Net interest margin
(fully taxable equivalent) |
|
|
|
|
|
|
3.37 |
% |
|
|
3.37 |
% |
|
|
3.21 |
% |
|
|
3.36 |
% |
|
|
3.24 |
% |
Efficiency ratio |
|
|
|
|
|
|
57.16 |
% |
|
|
58.88 |
% |
|
|
61.68 |
% |
|
|
59.43 |
% |
|
|
63.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET
DATA |
|
|
|
|
|
|
|
|
|
September 30 |
|
June 30 |
|
September 30 |
Assets |
|
|
|
|
|
|
|
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2017 |
|
Cash and due from
banks |
|
|
|
|
|
|
|
|
|
$ |
30,837 |
|
|
$ |
37,105 |
|
|
$ |
28,318 |
|
Federal funds sold and
other short-term investments |
|
|
|
|
|
|
|
|
|
|
152,339 |
|
|
|
107,416 |
|
|
|
131,571 |
|
Debt securities
available for sale |
|
|
|
|
|
|
|
|
|
|
218,615 |
|
|
|
218,770 |
|
|
|
214,182 |
|
Debt securities held to
maturity |
|
|
|
|
|
|
|
|
|
|
71,688 |
|
|
|
79,569 |
|
|
|
61,927 |
|
Federal Home Loan Bank
Stock |
|
|
|
|
|
|
|
|
|
|
11,558 |
|
|
|
11,558 |
|
|
|
11,558 |
|
Loans held for
sale |
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
61 |
|
|
|
2,199 |
|
Total loans |
|
|
|
|
|
|
|
|
|
|
1,344,683 |
|
|
|
1,327,686 |
|
|
|
1,260,037 |
|
Less allowance for loan
loss |
|
|
|
|
|
|
|
|
|
|
16,803 |
|
|
|
16,695 |
|
|
|
16,434 |
|
Net
loans |
|
|
|
|
|
|
|
|
|
|
1,327,880 |
|
|
|
1,310,991 |
|
|
|
1,243,603 |
|
Premises and equipment,
net |
|
|
|
|
|
|
|
|
|
|
45,631 |
|
|
|
45,907 |
|
|
|
46,822 |
|
Bank-owned life
insurance |
|
|
|
|
|
|
|
|
|
|
40,996 |
|
|
|
40,744 |
|
|
|
40,042 |
|
Other real estate
owned |
|
|
|
|
|
|
|
|
|
|
3,465 |
|
|
|
3,872 |
|
|
|
6,661 |
|
Other assets |
|
|
|
|
|
|
|
|
|
|
16,264 |
|
|
|
16,548 |
|
|
|
16,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets |
|
|
|
|
|
|
|
|
|
$ |
1,919,273 |
|
|
$ |
1,872,541 |
|
|
$ |
1,803,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits |
|
|
|
|
|
|
|
|
|
$ |
500,680 |
|
|
$ |
496,605 |
|
|
$ |
497,310 |
|
Interest-bearing
deposits |
|
|
|
|
|
|
|
|
|
|
1,117,063 |
|
|
|
1,083,856 |
|
|
|
1,008,868 |
|
Total
deposits |
|
|
|
|
|
|
|
|
|
|
1,617,743 |
|
|
|
1,580,461 |
|
|
|
1,506,178 |
|
Other borrowed
funds |
|
|
|
|
|
|
|
|
|
|
70,000 |
|
|
|
65,667 |
|
|
|
72,118 |
|
Long-term debt |
|
|
|
|
|
|
|
|
|
|
41,238 |
|
|
|
41,238 |
|
|
|
41,238 |
|
Other liabilities |
|
|
|
|
|
|
|
|
|
|
6,316 |
|
|
|
5,461 |
|
|
|
10,048 |
|
Total
Liabilities |
|
|
|
|
|
|
|
|
|
|
1,735,297 |
|
|
|
1,692,827 |
|
|
|
1,629,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity |
|
|
|
|
|
|
|
|
|
|
183,976 |
|
|
|
179,714 |
|
|
|
173,464 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
$ |
1,919,273 |
|
|
$ |
1,872,541 |
|
|
$ |
1,803,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MACATAWA BANK CORPORATION |
SELECTED CONSOLIDATED FINANCIAL
DATA |
(Unaudited) |
(Dollars in thousands except per share
information) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly |
|
Year to Date |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd Qtr |
|
2nd Qtr |
|
1st Qtr |
|
4th Qtr |
|
3rd Qtr |
|
|
|
|
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
EARNINGS
SUMMARY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
$ |
15,162 |
|
|
$ |
14,653 |
|
|
$ |
14,182 |
|
|
$ |
13,517 |
|
|
$ |
13,138 |
|
|
$ |
43,998 |
|
|
$ |
38,426 |
|
Provision for loan
losses |
|
|
- |
|
|
|
(300 |
) |
|
|
(100 |
) |
|
|
- |
|
|
|
(350 |
) |
|
|
(400 |
) |
|
|
(1,350 |
) |
Total non-interest
income |
|
|
4,499 |
|
|
|
4,468 |
|
|
|
4,132 |
|
|
|
4,410 |
|
|
|
4,300 |
|
|
|
13,098 |
|
|
|
13,009 |
|
Total non-interest
expense |
|
|
11,239 |
|
|
|
11,259 |
|
|
|
11,434 |
|
|
|
11,253 |
|
|
|
10,756 |
|
|
|
33,932 |
|
|
|
32,434 |
|
Federal income tax
expense |
|
|
1,570 |
|
|
|
1,434 |
|
|
|
1,225 |
|
|
|
4,480 |
|
|
|
2,157 |
|
|
|
4,228 |
|
|
|
6,253 |
|
Net income |
|
$ |
6,852 |
|
|
$ |
6,728 |
|
|
$ |
5,755 |
|
|
$ |
2,194 |
|
|
$ |
4,875 |
|
|
$ |
19,336 |
|
|
$ |
14,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share |
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.17 |
|
|
$ |
0.06 |
|
|
$ |
0.14 |
|
|
$ |
0.57 |
|
|
$ |
0.42 |
|
Diluted earnings per
common share |
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.17 |
|
|
$ |
0.06 |
|
|
$ |
0.14 |
|
|
$ |
0.57 |
|
|
$ |
0.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARKET
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share |
|
$ |
5.41 |
|
|
$ |
5.28 |
|
|
$ |
5.16 |
|
|
$ |
5.10 |
|
|
$ |
5.11 |
|
|
$ |
5.41 |
|
|
$ |
5.11 |
|
Tangible book value per
common share |
|
$ |
5.41 |
|
|
$ |
5.28 |
|
|
$ |
5.16 |
|
|
$ |
5.10 |
|
|
$ |
5.11 |
|
|
$ |
5.41 |
|
|
$ |
5.11 |
|
Market value per common
share |
|
$ |
11.71 |
|
|
$ |
12.14 |
|
|
$ |
10.27 |
|
|
$ |
10.00 |
|
|
$ |
10.26 |
|
|
$ |
11.71 |
|
|
$ |
10.26 |
|
Average basic common
shares |
|
|
34,014,319 |
|
|
|
34,016,679 |
|
|
|
34,010,396 |
|
|
|
33,958,992 |
|
|
|
33,942,248 |
|
|
|
34,013,813 |
|
|
|
33,942,318 |
|
Average diluted common
shares |
|
|
34,014,319 |
|
|
|
34,016,679 |
|
|
|
34,011,592 |
|
|
|
33,965,344 |
|
|
|
33,947,269 |
|
|
|
34,014,209 |
|
|
|
33,948,419 |
|
Period end common
shares |
|
|
34,014,319 |
|
|
|
34,014,319 |
|
|
|
34,017,525 |
|
|
|
33,972,977 |
|
|
|
33,941,953 |
|
|
|
34,014,319 |
|
|
|
33,941,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE
RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets |
|
|
1.43 |
% |
|
|
1.44 |
% |
|
|
1.25 |
% |
|
|
0.49 |
% |
|
|
1.10 |
% |
|
|
1.37 |
% |
|
|
1.08 |
% |
Return on average
equity |
|
|
15.12 |
% |
|
|
15.23 |
% |
|
|
13.24 |
% |
|
|
5.03 |
% |
|
|
11.34 |
% |
|
|
14.54 |
% |
|
|
11.17 |
% |
Net interest margin
(fully taxable equivalent) |
|
|
3.37 |
% |
|
|
3.37 |
% |
|
|
3.34 |
% |
|
|
3.25 |
% |
|
|
3.21 |
% |
|
|
3.36 |
% |
|
|
3.24 |
% |
Efficiency ratio |
|
|
57.16 |
% |
|
|
58.88 |
% |
|
|
62.43 |
% |
|
|
62.77 |
% |
|
|
61.68 |
% |
|
|
59.43 |
% |
|
|
63.06 |
% |
Full-time equivalent
employees (period end) |
|
|
332 |
|
|
|
339 |
|
|
|
332 |
|
|
|
340 |
|
|
|
343 |
|
|
|
332 |
|
|
|
343 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross charge-offs |
|
$ |
30 |
|
|
$ |
30 |
|
|
$ |
97 |
|
|
$ |
45 |
|
|
$ |
55 |
|
|
$ |
156 |
|
|
$ |
221 |
|
Net
charge-offs/(recoveries) |
|
$ |
(108 |
) |
|
$ |
(320 |
) |
|
$ |
(175 |
) |
|
$ |
(166 |
) |
|
$ |
(214 |
) |
|
$ |
(603 |
) |
|
$ |
(822 |
) |
Net charge-offs to
average loans (annualized) |
|
|
-0.03 |
% |
|
|
-0.10 |
% |
|
|
-0.05 |
% |
|
|
-0.05 |
% |
|
|
-0.07 |
% |
|
|
-0.06 |
% |
|
|
-0.09 |
% |
Nonperforming
loans |
|
$ |
123 |
|
|
$ |
125 |
|
|
$ |
324 |
|
|
$ |
395 |
|
|
$ |
521 |
|
|
$ |
123 |
|
|
$ |
521 |
|
Other real estate and
repossessed assets |
|
$ |
3,465 |
|
|
$ |
3,872 |
|
|
$ |
5,223 |
|
|
$ |
5,778 |
|
|
$ |
6,661 |
|
|
$ |
3,465 |
|
|
$ |
6,661 |
|
Nonperforming loans to
total loans |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.02 |
% |
|
|
0.03 |
% |
|
|
0.04 |
% |
|
|
0.01 |
% |
|
|
0.04 |
% |
Nonperforming assets to
total assets |
|
|
0.19 |
% |
|
|
0.21 |
% |
|
|
0.30 |
% |
|
|
0.33 |
% |
|
|
0.40 |
% |
|
|
0.19 |
% |
|
|
0.40 |
% |
Allowance for loan
losses |
|
$ |
16,803 |
|
|
$ |
16,695 |
|
|
$ |
16,675 |
|
|
$ |
16,600 |
|
|
$ |
16,434 |
|
|
$ |
16,803 |
|
|
$ |
16,434 |
|
Allowance for loan
losses to total loans |
|
|
1.25 |
% |
|
|
1.26 |
% |
|
|
1.26 |
% |
|
|
1.26 |
% |
|
|
1.30 |
% |
|
|
1.25 |
% |
|
|
1.30 |
% |
Allowance for loan
losses to nonperforming loans |
|
|
13660.98 |
% |
|
|
13356.00 |
% |
|
|
5146.60 |
% |
|
|
4202.53 |
% |
|
|
3154.32 |
% |
|
|
13660.98 |
% |
|
|
3154.32 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average equity to
average assets |
|
|
9.47 |
% |
|
|
9.44 |
% |
|
|
9.42 |
% |
|
|
9.68 |
% |
|
|
9.69 |
% |
|
|
9.44 |
% |
|
|
9.69 |
% |
Common equity tier 1 to
risk weighted assets (Consolidated) |
|
|
12.13 |
% |
|
|
11.83 |
% |
|
|
11.67 |
% |
|
|
11.31 |
% |
|
|
11.70 |
% |
|
|
12.13 |
% |
|
|
11.70 |
% |
Tier 1 capital to
average assets (Consolidated) |
|
|
11.90 |
% |
|
|
11.91 |
% |
|
|
11.83 |
% |
|
|
11.88 |
% |
|
|
12.04 |
% |
|
|
11.90 |
% |
|
|
12.04 |
% |
Total capital to
risk-weighted assets (Consolidated) |
|
|
15.79 |
% |
|
|
15.49 |
% |
|
|
15.36 |
% |
|
|
14.99 |
% |
|
|
15.50 |
% |
|
|
15.79 |
% |
|
|
15.50 |
% |
Common equity tier 1 to
risk weighted assets (Bank) |
|
|
14.28 |
% |
|
|
14.01 |
% |
|
|
13.87 |
% |
|
|
13.54 |
% |
|
|
13.99 |
% |
|
|
14.28 |
% |
|
|
13.99 |
% |
Tier 1 capital to
average assets (Bank) |
|
|
11.56 |
% |
|
|
11.58 |
% |
|
|
11.50 |
% |
|
|
11.56 |
% |
|
|
11.72 |
% |
|
|
11.56 |
% |
|
|
11.72 |
% |
Total capital to
risk-weighted assets (Bank) |
|
|
15.36 |
% |
|
|
15.09 |
% |
|
|
14.96 |
% |
|
|
14.62 |
% |
|
|
15.10 |
% |
|
|
15.36 |
% |
|
|
15.10 |
% |
Tangible common equity
to assets |
|
|
9.59 |
% |
|
|
9.60 |
% |
|
|
9.42 |
% |
|
|
9.15 |
% |
|
|
9.63 |
% |
|
|
9.59 |
% |
|
|
9.63 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
END OF PERIOD
BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total portfolio
loans |
|
$ |
1,344,683 |
|
|
$ |
1,327,686 |
|
|
$ |
1,325,545 |
|
|
$ |
1,320,309 |
|
|
$ |
1,260,037 |
|
|
$ |
1,344,683 |
|
|
$ |
1,260,037 |
|
Earning assets |
|
|
1,804,672 |
|
|
|
1,751,167 |
|
|
|
1,751,315 |
|
|
|
1,767,752 |
|
|
|
1,680,458 |
|
|
|
1,804,672 |
|
|
|
1,680,458 |
|
Total assets |
|
|
1,919,273 |
|
|
|
1,872,541 |
|
|
|
1,863,780 |
|
|
|
1,890,232 |
|
|
|
1,803,046 |
|
|
|
1,919,273 |
|
|
|
1,803,046 |
|
Deposits |
|
|
1,617,743 |
|
|
|
1,580,461 |
|
|
|
1,560,872 |
|
|
|
1,579,010 |
|
|
|
1,506,178 |
|
|
|
1,617,743 |
|
|
|
1,506,178 |
|
Total shareholders'
equity |
|
|
183,976 |
|
|
|
179,714 |
|
|
|
175,376 |
|
|
|
172,986 |
|
|
|
173,464 |
|
|
|
183,976 |
|
|
|
173,464 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE
BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total portfolio
loans |
|
$ |
1,325,268 |
|
|
$ |
1,327,408 |
|
|
$ |
1,314,838 |
|
|
$ |
1,285,688 |
|
|
$ |
1,252,075 |
|
|
$ |
1,322,543 |
|
|
$ |
1,258,940 |
|
Earning assets |
|
|
1,799,600 |
|
|
|
1,756,909 |
|
|
|
1,730,576 |
|
|
|
1,681,297 |
|
|
|
1,652,028 |
|
|
|
1,762,614 |
|
|
|
1,609,143 |
|
Total assets |
|
|
1,915,655 |
|
|
|
1,872,559 |
|
|
|
1,845,911 |
|
|
|
1,802,386 |
|
|
|
1,775,302 |
|
|
|
1,878,297 |
|
|
|
1,735,425 |
|
Deposits |
|
|
1,614,151 |
|
|
|
1,575,408 |
|
|
|
1,537,376 |
|
|
|
1,497,213 |
|
|
|
1,481,539 |
|
|
|
1,575,926 |
|
|
|
1,433,277 |
|
Total shareholders'
equity |
|
|
181,329 |
|
|
|
176,749 |
|
|
|
173,913 |
|
|
|
174,427 |
|
|
|
171,987 |
|
|
|
177,358 |
|
|
|
168,209 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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