Macatawa Bank Corporation (NASDAQ: MCBC) today announced its
results for the fourth quarter and full year of 2018, reflecting
continued strong financial performance.
- Net income of $7.0 million in fourth quarter 2018 versus $2.2
million in the fourth quarter 2017
- Full year 2018 net income of $26.4 million versus $16.3 million
in 2017 – up 62%
- 2018 earnings positively impacted by tax reform enacted at end
of 2017
- Pretax earnings increased by 32% and 20% for the fourth quarter
and full year 2018 compared to the same periods in the prior year,
reflecting healthy core earnings improvement
- Continued trend of increased total revenue while holding
expenses flat
- Full year net interest income up $7.7 million, or 15%, over
2017
- Full year non-interest expense up $641,000, or 1%, over
2017
- Loan portfolio balances up by $85.3 million (6%), from a year
ago
- Core deposit balances up by $97.7 million (6%), from a year
ago
- Asset quality metrics remained strong
Macatawa reported net income of $7.0 million, or $0.21 per
diluted share, in the fourth quarter 2018 compared to $2.2 million,
or $0.06 per diluted share, in the fourth quarter 2017. For
the full year 2018, the Company reported net income of $26.4
million, or $0.78 per diluted share compared to $16.3 million, or
$0.48 per diluted share, for the same period in 2017. The
fourth quarter and full year 2017 earnings were reduced by $2.5
million resulting from an increase in federal income tax expense
necessary to revalue the Company’s net deferred tax assets at the
end of the year as a result of tax reform enacted at the end of
2017. Tax expense for 2018 was positively impacted by the
reduction in the corporate tax rate from 35% to 21%.
“We are pleased to report strong operating performance for the
fourth quarter and full year of 2018,” said Ronald L. Haan,
President and CEO of the Company. “Earnings improvement has
been driven primarily by growth in net interest income. This
was the result of growth in balances of loans and improvement in
net interest margin, supported by growth in core deposit
funding. Portfolio loans and core deposits each grew by 6% in
2018. Net interest margin was up 21 basis points in the
fourth quarter of 2018 compared to the fourth quarter of
2017. At the same time, asset quality remained strong with
low levels of past due loans and non-performing assets. While
we did have net loan charge-offs in 2018 after five consecutive
years of net loan recoveries, net charge-offs remained at low
levels.”
Mr. Haan concluded, “Our focus on profitable growth continues to
deliver strong and consistent financial performance for our
shareholders. We remain committed to operating a
well-disciplined company in order to produce these kinds of results
again in the upcoming year and beyond.”
Operating ResultsNet interest
income for the fourth quarter 2018 totaled $15.6 million, an
increase of $466,000 from the third quarter 2018 and an increase of
$2.1 million from the fourth quarter 2017. Net interest
margin was 3.46 percent, up 9 basis points from the third quarter
2018, and up 21 basis points from the fourth quarter 2017.
Average interest earning assets for the fourth quarter 2018
increased $6.6 million from the third quarter 2018 and were up
$124.9 million from the fourth quarter 2017 primarily due to growth
in portfolio loans.
Non-interest income decreased $94,000 in the fourth quarter 2018
compared to the third quarter 2018 and decreased $5,000 from the
fourth quarter 2017. In the fourth quarter 2018, the Bank
determined it would sell a property it had held for several years
as a potential branch location. The Bank recorded a valuation
writedown on this property in the fourth quarter 2018, accounting
for most of the decrease in non-interest income from the third
quarter 2018 and the fourth quarter 2017. Gains on sales of
mortgage loans continued its downward trend as overall mortgage
volume has been down in recent quarters, due primarily to increased
market rates as well as a shortage in 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. Gains
on sales of mortgage loans in the fourth quarter 2018 were up
$21,000 compared to the third quarter 2018 and down $10,000 from
the fourth quarter 2017. Other categories of non-interest
income in the fourth quarter 2018 were relatively flat compared to
the third quarter 2018 and the fourth quarter 2017.
Non-interest expense was $10.4 million for the fourth quarter
2018, compared to $11.2 million for the third quarter 2018 and
$11.3 million for the fourth quarter 2017. The largest
component of non-interest expense was salaries and benefit
expenses. Salaries and benefit expenses were down $95,000
compared to the third quarter 2018 and were down $175,000 compared
to the fourth quarter 2017. For the full year 2018, salaries
and benefits were up $404,000 compared to 2017. Total
salaries and benefits expense has remained at a consistent level
over the past several quarters and full years due to efforts to
prudently manage overall cost levels.
The largest fluctuation between periods in non-interest expense
was in nonperforming asset expenses. Net nonperforming asset
expenses decreased $690,000 compared to the third quarter 2018 and
decreased $787,000 compared to the fourth quarter 2017.
During the fourth quarter 2018, the Bank sold a property it
had obtained upon default of a loan for a gain of $675,000.
This accounts for most of the variance between quarterly periods.
For the full year, net nonperforming asset expenses were just
$69,000 in 2018, compared to $65,000 in 2017. Other
categories of non-interest expense in the fourth quarter 2018 were
relatively flat compared to the third quarter 2018 and the fourth
quarter 2017.
For the full year, total revenue, including both net interest
income and non-interest income, grew by $7.8 million compared to
2017 while non-interest expenses increased by $641,000.
Federal income tax expense was $1.7 million for the fourth
quarter 2018 compared to $1.6 million for the third quarter 2018
and $4.5 million for the fourth quarter 2017. Federal income
tax expense for the fourth quarter 2017 included a $2.5 million
expense to revalue the Company’s net deferred tax assets in
response to the tax reform law enacted in December 2017.
Asset QualityOverall loan portfolio quality
remained strong through 2018. A provision for loan losses of
$850,000 was recorded in the fourth quarter 2018, primarily as a
result of net charge-offs of $776,000 for the quarter as well as
loan portfolio growth. The Bank had net loan recoveries in
the third quarter 2018 of $108,000 and net loan recoveries of
$166,000 in the fourth quarter 2017. The Company has
experienced net loan recoveries in fifteen of the past sixteen
quarters and in the five consecutive full years through December
31, 2017. While net recoveries changed to net charge-offs in
2018, the total for the whole year was $174,000, only 0.01 percent
of total loans. Total loans past due on payments by 30 days
or more were negligible and amounted to $877,000 at December 31,
2018, down 12 percent from $995,000 at December 31, 2017.
Delinquency as a percentage of total loans was 0.06 percent at
December 31, 2018, down from 0.08 percent at December 31, 2017.
The allowance for loan losses of $16.9 million was 1.20 percent
of total loans at December 31, 2018, compared to 1.25 percent of
total loans at September 30, 2018, and 1.26 percent at December 31,
2017. The coverage ratio of allowance for loan losses to
nonperforming loans continued to be strong and significantly
exceeded 1-to-1 coverage at 13-to-1 as of December 31, 2018.
At December 31, 2018, the Company's nonperforming loans were
$1.3 million, representing 0.09 percent of total loans. This
compares to $123,000 (0.01 percent of total loans) at September 30,
2018 and $395,000 (0.03 percent of total loans) at December 31,
2017. Other real estate owned and repossessed assets were
$3.4 million at December 31, 2018, compared to $3.5 million at
September 30, 2018 and $5.8 million at December 31, 2017.
Total nonperforming assets, including other real estate owned and
nonperforming loans, decreased by $1.5 million, or 24 percent, from
December 31, 2017 to December 31, 2018.
A break-down of non-performing loans is shown in the table
below.
Dollars in
000s |
|
Dec 31,2018 |
|
Sept 30,2018 |
|
Jun 30,2018 |
|
Mar 31,2018 |
|
Dec 31,2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real
Estate |
|
$ |
318 |
|
$ |
121 |
|
$ |
121 |
|
$ |
121 |
|
$ |
385 |
|
Commercial and
Industrial |
|
|
873 |
|
|
--- |
|
|
2 |
|
|
201 |
|
|
4 |
|
Total
Commercial Loans |
|
|
1,191 |
|
|
121 |
|
|
123 |
|
|
322 |
|
|
389 |
|
Residential Mortgage
Loans |
|
|
112 |
|
|
2 |
|
|
2 |
|
|
2 |
|
|
2 |
|
Consumer Loans |
|
|
1 |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
4 |
|
Total
Non-Performing Loans |
|
$ |
1,304 |
|
$ |
123 |
|
$ |
125 |
|
$ |
324 |
|
$ |
395 |
|
Total non-performing assets were $4.7 million, or 0.24 percent
of total assets, at December 31, 2018. A break-down of
non-performing assets is shown in the table below.
Dollars in
000s |
|
Dec 31,2018 |
|
Sept 30,2018 |
|
Jun 30,2018 |
|
Mar 31,2018 |
|
Dec 31,2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Performing
Loans |
|
$ |
1,304 |
|
$ |
123 |
|
$ |
125 |
|
$ |
324 |
|
$ |
395 |
|
Other Repossessed
Assets |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
11 |
|
Other Real Estate
Owned |
|
|
3,380 |
|
|
3,465 |
|
|
3,872 |
|
|
5,223 |
|
|
5,767 |
|
Total
Non-Performing Assets |
|
$ |
4,684 |
|
$ |
3,588 |
|
$ |
3,997 |
|
$ |
5,547 |
|
$ |
6,173 |
|
Balance Sheet, Liquidity and
CapitalTotal assets were $1.98 billion at December 31,
2018, an increase of $55.9 million from $1.92 billion at September
30, 2018 and an increase of $84.9 million from $1.89 billion at
December 31, 2017. Total loans were $1.41 billion at December
31, 2018, an increase of $61.0 million from $1.34 billion at
September 30, 2018 and an increase of $85.3 million from $1.32
billion at December 31, 2017.
Commercial loans increased by $74.9 million from December 31,
2017 to December 31, 2018, while residential mortgage loans
increased by $13.7 million and consumer loans decreased by $3.3
million. Commercial real estate loans increased by $26.8
million while commercial and industrial loans increased by $48.1
million during the same period.
The composition of the commercial loan portfolio is shown in the
table below:
Dollars in
000s |
|
Dec 31,2018 |
|
Sept 30,2018 |
|
Jun 30,2018 |
|
Mar 31,2018 |
|
|
Dec 31,2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and
Development |
|
$ |
99,867 |
|
$ |
93,794 |
|
$ |
85,193 |
|
$ |
81,948 |
|
$ |
92,241 |
|
Other Commercial Real
Estate |
|
|
468,840 |
|
|
459,146 |
|
|
461,808 |
|
|
447,922 |
|
|
449,694 |
|
Commercial Loans Securedby Real Estate |
|
|
568,707 |
|
|
552,940 |
|
|
547,001 |
|
|
529,870 |
|
|
541,935 |
|
Commercial and
Industrial |
|
|
513,347 |
|
|
467,703 |
|
|
458,468 |
|
|
477,088 |
|
|
465,208 |
|
Total
Commercial Loans |
|
$ |
1,082,054 |
|
$ |
1,020,643 |
|
$ |
1,005,469 |
|
$ |
1,006,958 |
|
$ |
1,007,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits were $1.68 billion at December 31, 2018, up $59.0
million from $1.62 billion at September 30, 2018 and were up $97.7
million, or 6 percent, from $1.58 billion at December 31,
2017. The increase in total deposits from December 31, 2017
was across most deposit types. The increase in
interest-bearing checking of $47.4 million was partially offset by
a decrease of $5.1 million in non-interest checking. The
other categories of deposits each increased including money market
deposits (up $19.6 million), savings (up $1.1 million) and
certificates of deposit (up $34.7 million). The Bank
continues to be successful at attracting and retaining core deposit
customers.
The Bank's risk-based regulatory capital ratios at December 31,
2018 decreased slightly compared to September 30, 2018 and were up
compared to December 31, 2017 due to asset growth and earnings
growth. All categories 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 December 31, 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 seven consecutive years as “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 future levels of earnings and
profitability. 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 |
|
Twelve Months Ended |
|
|
|
|
|
|
4th Qtr |
|
3rd Qtr |
|
4th Qtr |
|
December 31 |
EARNINGS
SUMMARY |
|
|
|
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Total interest
income |
|
|
|
|
|
$ |
18,496 |
|
|
$ |
17,687 |
|
|
$ |
15,159 |
|
|
$ |
69,037 |
|
|
$ |
57,676 |
|
Total interest
expense |
|
|
|
|
|
|
2,868 |
|
|
|
2,525 |
|
|
|
1,642 |
|
|
|
9,411 |
|
|
|
5,732 |
|
Net interest
income |
|
|
|
|
|
|
15,628 |
|
|
|
15,162 |
|
|
|
13,517 |
|
|
|
59,626 |
|
|
|
51,944 |
|
Provision for loan
losses |
|
|
|
|
|
|
850 |
|
|
|
- |
|
|
|
- |
|
|
|
450 |
|
|
|
(1,350 |
) |
Net interest
income after provision for loan losses |
|
|
|
|
|
|
14,778 |
|
|
|
15,162 |
|
|
|
13,517 |
|
|
|
59,176 |
|
|
|
53,294 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit service
charges |
|
|
|
|
|
|
1,135 |
|
|
|
1,132 |
|
|
|
1,125 |
|
|
|
4,377 |
|
|
|
4,466 |
|
Net gains on mortgage
loans |
|
|
|
|
|
|
291 |
|
|
|
270 |
|
|
|
301 |
|
|
|
924 |
|
|
|
1,574 |
|
Trust fees |
|
|
|
|
|
|
884 |
|
|
|
889 |
|
|
|
866 |
|
|
|
3,643 |
|
|
|
3,277 |
|
Other |
|
|
|
|
|
|
2,095 |
|
|
|
2,208 |
|
|
|
2,118 |
|
|
|
8,559 |
|
|
|
8,102 |
|
Total
non-interest income |
|
|
|
|
|
|
4,405 |
|
|
|
4,499 |
|
|
|
4,410 |
|
|
|
17,503 |
|
|
|
17,419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits |
|
|
|
|
|
|
6,265 |
|
|
|
6,360 |
|
|
|
6,440 |
|
|
|
25,207 |
|
|
|
24,803 |
|
Occupancy |
|
|
|
|
|
|
948 |
|
|
|
939 |
|
|
|
926 |
|
|
|
3,931 |
|
|
|
3,864 |
|
Furniture and
equipment |
|
|
|
|
|
|
787 |
|
|
|
760 |
|
|
|
772 |
|
|
|
3,125 |
|
|
|
3,050 |
|
FDIC assessment |
|
|
|
|
|
|
127 |
|
|
|
127 |
|
|
|
135 |
|
|
|
518 |
|
|
|
539 |
|
Problem asset costs,
including losses and (gains) |
|
|
|
|
|
|
(582 |
) |
|
|
108 |
|
|
|
205 |
|
|
|
69 |
|
|
|
65 |
|
Other |
|
|
|
|
|
|
2,852 |
|
|
|
2,945 |
|
|
|
2,775 |
|
|
|
11,479 |
|
|
|
11,367 |
|
Total
non-interest expense |
|
|
|
|
|
|
10,397 |
|
|
|
11,239 |
|
|
|
11,253 |
|
|
|
44,329 |
|
|
|
43,688 |
|
Income before income
tax |
|
|
|
|
|
|
8,786 |
|
|
|
8,422 |
|
|
|
6,674 |
|
|
|
32,350 |
|
|
|
27,025 |
|
Income tax expense |
|
|
|
|
|
|
1,743 |
|
|
|
1,570 |
|
|
|
4,480 |
|
|
|
5,971 |
|
|
|
10,733 |
|
Net
income |
|
|
|
|
|
$ |
7,043 |
|
|
$ |
6,852 |
|
|
$ |
2,194 |
|
|
$ |
26,379 |
|
|
$ |
16,292 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share |
|
|
|
|
|
$ |
0.21 |
|
|
$ |
0.20 |
|
|
$ |
0.06 |
|
|
$ |
0.78 |
|
|
$ |
0.48 |
|
Diluted earnings per
common share |
|
|
|
|
|
$ |
0.21 |
|
|
$ |
0.20 |
|
|
$ |
0.06 |
|
|
$ |
0.78 |
|
|
$ |
0.48 |
|
Return on average
assets |
|
|
|
|
|
|
1.47 |
% |
|
|
1.43 |
% |
|
|
0.49 |
% |
|
|
1.40 |
% |
|
|
0.93 |
% |
Return on average
equity |
|
|
|
|
|
|
15.12 |
% |
|
|
15.12 |
% |
|
|
5.03 |
% |
|
|
14.69 |
% |
|
|
9.60 |
% |
Net interest margin
(fully taxable equivalent) |
|
|
|
|
|
|
3.46 |
% |
|
|
3.37 |
% |
|
|
3.25 |
% |
|
|
3.38 |
% |
|
|
3.24 |
% |
Efficiency ratio |
|
|
|
|
|
|
51.90 |
% |
|
|
57.16 |
% |
|
|
62.77 |
% |
|
|
57.47 |
% |
|
|
62.98 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET
DATA |
|
|
|
|
|
|
|
|
|
December 31 |
|
September 30 |
|
December 31 |
Assets |
|
|
|
|
|
|
|
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2017 |
|
Cash and due from
banks |
|
|
|
|
|
|
|
|
|
$ |
40,526 |
|
|
$ |
30,837 |
|
|
$ |
34,945 |
|
Federal funds sold and
other short-term investments |
|
|
|
|
|
|
|
|
|
|
130,758 |
|
|
|
152,339 |
|
|
|
126,522 |
|
Debt securities
available for sale |
|
|
|
|
|
|
|
|
|
|
226,986 |
|
|
|
218,615 |
|
|
|
219,250 |
|
Debt securities held to
maturity |
|
|
|
|
|
|
|
|
|
|
70,334 |
|
|
|
71,688 |
|
|
|
85,827 |
|
Federal Home Loan Bank
Stock |
|
|
|
|
|
|
|
|
|
|
11,558 |
|
|
|
11,558 |
|
|
|
11,558 |
|
Loans held for
sale |
|
|
|
|
|
|
|
|
|
|
415 |
|
|
|
- |
|
|
|
1,208 |
|
Total loans |
|
|
|
|
|
|
|
|
|
|
1,405,658 |
|
|
|
1,344,683 |
|
|
|
1,320,309 |
|
Less allowance for loan
loss |
|
|
|
|
|
|
|
|
|
|
16,876 |
|
|
|
16,803 |
|
|
|
16,600 |
|
Net loans |
|
|
|
|
|
|
|
|
|
|
1,388,782 |
|
|
|
1,327,880 |
|
|
|
1,303,709 |
|
Premises and equipment,
net |
|
|
|
|
|
|
|
|
|
|
44,862 |
|
|
|
45,631 |
|
|
|
46,629 |
|
Bank-owned life
insurance |
|
|
|
|
|
|
|
|
|
|
41,185 |
|
|
|
40,996 |
|
|
|
40,243 |
|
Other real estate
owned |
|
|
|
|
|
|
|
|
|
|
3,380 |
|
|
|
3,465 |
|
|
|
5,767 |
|
Other assets |
|
|
|
|
|
|
|
|
|
|
16,338 |
|
|
|
16,264 |
|
|
|
14,574 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets |
|
|
|
|
|
|
|
|
|
$ |
1,975,124 |
|
|
$ |
1,919,273 |
|
|
$ |
1,890,232 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits |
|
|
|
|
|
|
|
|
|
$ |
485,530 |
|
|
$ |
500,680 |
|
|
$ |
490,583 |
|
Interest-bearing
deposits |
|
|
|
|
|
|
|
|
|
|
1,191,209 |
|
|
|
1,117,063 |
|
|
|
1,088,427 |
|
Total
deposits |
|
|
|
|
|
|
|
|
|
|
1,676,739 |
|
|
|
1,617,743 |
|
|
|
1,579,010 |
|
Other borrowed
funds |
|
|
|
|
|
|
|
|
|
|
60,000 |
|
|
|
70,000 |
|
|
|
92,118 |
|
Long-term debt |
|
|
|
|
|
|
|
|
|
|
41,238 |
|
|
|
41,238 |
|
|
|
41,238 |
|
Other liabilities |
|
|
|
|
|
|
|
|
|
|
6,294 |
|
|
|
6,316 |
|
|
|
4,880 |
|
Total
Liabilities |
|
|
|
|
|
|
|
|
|
|
1,784,271 |
|
|
|
1,735,297 |
|
|
|
1,717,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity |
|
|
|
|
|
|
|
|
|
|
190,853 |
|
|
|
183,976 |
|
|
|
172,986 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
$ |
1,975,124 |
|
|
$ |
1,919,273 |
|
|
$ |
1,890,232 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MACATAWA BANK CORPORATION |
SELECTED CONSOLIDATED FINANCIAL
DATA |
(Unaudited) |
(Dollars in thousands except per share
information) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly |
|
Year to Date |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4th Qtr |
|
3rd Qtr |
|
2nd Qtr |
|
1st Qtr |
|
4th Qtr |
|
|
|
|
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
EARNINGS
SUMMARY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
$ |
15,628 |
|
|
$ |
15,162 |
|
|
$ |
14,653 |
|
|
$ |
14,182 |
|
|
$ |
13,517 |
|
|
$ |
59,626 |
|
|
$ |
51,944 |
|
Provision for loan
losses |
|
|
850 |
|
|
|
- |
|
|
|
(300 |
) |
|
|
(100 |
) |
|
|
- |
|
|
|
450 |
|
|
|
(1,350 |
) |
Total non-interest
income |
|
|
4,405 |
|
|
|
4,499 |
|
|
|
4,468 |
|
|
|
4,132 |
|
|
|
4,410 |
|
|
|
17,503 |
|
|
|
17,419 |
|
Total non-interest
expense |
|
|
10,397 |
|
|
|
11,239 |
|
|
|
11,259 |
|
|
|
11,434 |
|
|
|
11,253 |
|
|
|
44,329 |
|
|
|
43,688 |
|
Federal income tax
expense |
|
|
1,743 |
|
|
|
1,570 |
|
|
|
1,434 |
|
|
|
1,225 |
|
|
|
4,480 |
|
|
|
5,971 |
|
|
|
10,733 |
|
Net income |
|
$ |
7,043 |
|
|
$ |
6,852 |
|
|
$ |
6,728 |
|
|
$ |
5,755 |
|
|
$ |
2,194 |
|
|
$ |
26,379 |
|
|
$ |
16,292 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share |
|
$ |
0.21 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.17 |
|
|
$ |
0.06 |
|
|
$ |
0.78 |
|
|
$ |
0.48 |
|
Diluted earnings per
common share |
|
$ |
0.21 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.17 |
|
|
$ |
0.06 |
|
|
$ |
0.78 |
|
|
$ |
0.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARKET
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share |
|
$ |
5.61 |
|
|
$ |
5.41 |
|
|
$ |
5.28 |
|
|
$ |
5.16 |
|
|
$ |
5.10 |
|
|
$ |
5.61 |
|
|
$ |
5.10 |
|
Tangible book value per
common share |
|
$ |
5.61 |
|
|
$ |
5.41 |
|
|
$ |
5.28 |
|
|
$ |
5.16 |
|
|
$ |
5.10 |
|
|
$ |
5.61 |
|
|
$ |
5.10 |
|
Market value per common
share |
|
$ |
9.62 |
|
|
$ |
11.71 |
|
|
$ |
12.14 |
|
|
$ |
10.27 |
|
|
$ |
10.00 |
|
|
$ |
9.62 |
|
|
$ |
10.00 |
|
Average basic common
shares |
|
|
34,031,454 |
|
|
|
34,014,319 |
|
|
|
34,016,679 |
|
|
|
34,010,396 |
|
|
|
33,958,992 |
|
|
|
34,018,259 |
|
|
|
33,946,520 |
|
Average diluted common
shares |
|
|
34,031,454 |
|
|
|
34,014,319 |
|
|
|
34,016,679 |
|
|
|
34,011,592 |
|
|
|
33,965,344 |
|
|
|
34,018,554 |
|
|
|
33,952,872 |
|
Period end common
shares |
|
|
34,045,411 |
|
|
|
34,014,319 |
|
|
|
34,014,319 |
|
|
|
34,017,525 |
|
|
|
33,972,977 |
|
|
|
34,045,411 |
|
|
|
33,972,977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE
RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets |
|
|
1.47 |
% |
|
|
1.43 |
% |
|
|
1.44 |
% |
|
|
1.25 |
% |
|
|
0.49 |
% |
|
|
1.40 |
% |
|
|
0.93 |
% |
Return on average
equity |
|
|
15.12 |
% |
|
|
15.12 |
% |
|
|
15.23 |
% |
|
|
13.24 |
% |
|
|
5.03 |
% |
|
|
14.69 |
% |
|
|
9.60 |
% |
Net interest margin
(fully taxable equivalent) |
|
|
3.46 |
% |
|
|
3.37 |
% |
|
|
3.37 |
% |
|
|
3.34 |
% |
|
|
3.25 |
% |
|
|
3.38 |
% |
|
|
3.24 |
% |
Efficiency ratio |
|
|
51.90 |
% |
|
|
57.16 |
% |
|
|
58.88 |
% |
|
|
62.43 |
% |
|
|
62.77 |
% |
|
|
57.47 |
% |
|
|
62.98 |
% |
Full-time equivalent
employees (period end) |
|
|
334 |
|
|
|
332 |
|
|
|
339 |
|
|
|
332 |
|
|
|
340 |
|
|
|
334 |
|
|
|
340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross charge-offs |
|
$ |
1,179 |
|
|
$ |
30 |
|
|
$ |
30 |
|
|
$ |
97 |
|
|
$ |
45 |
|
|
$ |
1,335 |
|
|
$ |
266 |
|
Net
charge-offs/(recoveries) |
|
$ |
776 |
|
|
$ |
(108 |
) |
|
$ |
(320 |
) |
|
$ |
(175 |
) |
|
$ |
(166 |
) |
|
$ |
174 |
|
|
$ |
(988 |
) |
Net charge-offs to
average loans (annualized) |
|
|
0.23 |
% |
|
|
-0.03 |
% |
|
|
-0.10 |
% |
|
|
-0.05 |
% |
|
|
-0.05 |
% |
|
|
0.01 |
% |
|
|
-0.08 |
% |
Nonperforming
loans |
|
$ |
1,304 |
|
|
$ |
123 |
|
|
$ |
125 |
|
|
$ |
324 |
|
|
$ |
395 |
|
|
$ |
1,304 |
|
|
$ |
395 |
|
Other real estate and
repossessed assets |
|
$ |
3,380 |
|
|
$ |
3,465 |
|
|
$ |
3,872 |
|
|
$ |
5,223 |
|
|
$ |
5,778 |
|
|
$ |
3,380 |
|
|
$ |
5,778 |
|
Nonperforming loans to
total loans |
|
|
0.09 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.02 |
% |
|
|
0.03 |
% |
|
|
0.09 |
% |
|
|
0.03 |
% |
Nonperforming assets to
total assets |
|
|
0.24 |
% |
|
|
0.19 |
% |
|
|
0.21 |
% |
|
|
0.30 |
% |
|
|
0.33 |
% |
|
|
0.24 |
% |
|
|
0.33 |
% |
Allowance for loan
losses |
|
$ |
16,876 |
|
|
$ |
16,803 |
|
|
$ |
16,695 |
|
|
$ |
16,675 |
|
|
$ |
16,600 |
|
|
$ |
16,876 |
|
|
$ |
16,600 |
|
Allowance for loan
losses to total loans |
|
|
1.20 |
% |
|
|
1.25 |
% |
|
|
1.26 |
% |
|
|
1.26 |
% |
|
|
1.26 |
% |
|
|
1.20 |
% |
|
|
1.26 |
% |
Allowance for loan
losses to nonperforming loans |
|
|
1293.18 |
% |
|
|
13660.98 |
% |
|
|
13356.00 |
% |
|
|
5146.60 |
% |
|
|
4202.53 |
% |
|
|
1293.18 |
% |
|
|
4202.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average equity to
average assets |
|
|
9.71 |
% |
|
|
9.47 |
% |
|
|
9.44 |
% |
|
|
9.42 |
% |
|
|
9.68 |
% |
|
|
9.51 |
% |
|
|
9.68 |
% |
Common equity tier 1 to
risk weighted assets (Consolidated) |
|
|
12.01 |
% |
|
|
12.13 |
% |
|
|
11.83 |
% |
|
|
11.67 |
% |
|
|
11.31 |
% |
|
|
12.01 |
% |
|
|
11.31 |
% |
Tier 1 capital to
average assets (Consolidated) |
|
|
12.12 |
% |
|
|
11.90 |
% |
|
|
11.91 |
% |
|
|
11.83 |
% |
|
|
11.88 |
% |
|
|
12.12 |
% |
|
|
11.88 |
% |
Total capital to
risk-weighted assets (Consolidated) |
|
|
15.54 |
% |
|
|
15.79 |
% |
|
|
15.49 |
% |
|
|
15.36 |
% |
|
|
14.99 |
% |
|
|
15.54 |
% |
|
|
14.99 |
% |
Common equity tier 1 to
risk weighted assets (Bank) |
|
|
14.09 |
% |
|
|
14.28 |
% |
|
|
14.01 |
% |
|
|
13.87 |
% |
|
|
13.54 |
% |
|
|
14.09 |
% |
|
|
13.54 |
% |
Tier 1 capital to
average assets (Bank) |
|
|
11.78 |
% |
|
|
11.56 |
% |
|
|
11.58 |
% |
|
|
11.50 |
% |
|
|
11.56 |
% |
|
|
11.78 |
% |
|
|
11.56 |
% |
Total capital to
risk-weighted assets (Bank) |
|
|
15.13 |
% |
|
|
15.36 |
% |
|
|
15.09 |
% |
|
|
14.96 |
% |
|
|
14.62 |
% |
|
|
15.13 |
% |
|
|
14.62 |
% |
Tangible common equity
to assets |
|
|
9.67 |
% |
|
|
9.59 |
% |
|
|
9.60 |
% |
|
|
9.42 |
% |
|
|
9.15 |
% |
|
|
9.67 |
% |
|
|
9.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
END OF PERIOD
BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total portfolio
loans |
|
$ |
1,405,658 |
|
|
$ |
1,344,683 |
|
|
$ |
1,327,686 |
|
|
$ |
1,325,545 |
|
|
$ |
1,320,309 |
|
|
$ |
1,405,658 |
|
|
$ |
1,320,309 |
|
Earning assets |
|
|
1,849,630 |
|
|
|
1,804,672 |
|
|
|
1,751,167 |
|
|
|
1,751,315 |
|
|
|
1,767,752 |
|
|
|
1,849,630 |
|
|
|
1,767,752 |
|
Total assets |
|
|
1,975,124 |
|
|
|
1,919,273 |
|
|
|
1,872,541 |
|
|
|
1,863,780 |
|
|
|
1,890,232 |
|
|
|
1,975,124 |
|
|
|
1,890,232 |
|
Deposits |
|
|
1,676,739 |
|
|
|
1,617,743 |
|
|
|
1,580,461 |
|
|
|
1,560,872 |
|
|
|
1,579,010 |
|
|
|
1,676,739 |
|
|
|
1,579,010 |
|
Total shareholders'
equity |
|
|
190,853 |
|
|
|
183,976 |
|
|
|
179,714 |
|
|
|
175,376 |
|
|
|
172,986 |
|
|
|
190,853 |
|
|
|
172,986 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE
BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total portfolio
loans |
|
$ |
1,363,548 |
|
|
$ |
1,325,268 |
|
|
$ |
1,327,408 |
|
|
$ |
1,314,838 |
|
|
$ |
1,285,688 |
|
|
$ |
1,332,878 |
|
|
$ |
1,265,682 |
|
Earning assets |
|
|
1,806,229 |
|
|
|
1,799,600 |
|
|
|
1,756,909 |
|
|
|
1,730,576 |
|
|
|
1,681,297 |
|
|
|
1,773,608 |
|
|
|
1,627,330 |
|
Total assets |
|
|
1,918,543 |
|
|
|
1,915,655 |
|
|
|
1,872,559 |
|
|
|
1,845,911 |
|
|
|
1,802,386 |
|
|
|
1,888,441 |
|
|
|
1,752,303 |
|
Deposits |
|
|
1,618,861 |
|
|
|
1,614,151 |
|
|
|
1,575,408 |
|
|
|
1,537,376 |
|
|
|
1,497,213 |
|
|
|
1,586,748 |
|
|
|
1,449,393 |
|
Total shareholders'
equity |
|
|
186,361 |
|
|
|
181,329 |
|
|
|
176,749 |
|
|
|
173,913 |
|
|
|
174,427 |
|
|
|
179,627 |
|
|
|
169,776 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact:
Jon Swets, CFO
616-494-7645
Macatawa Bank (NASDAQ:MCBC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Macatawa Bank (NASDAQ:MCBC)
Historical Stock Chart
From Sep 2023 to Sep 2024