Macatawa Bank Corporation (NASDAQ: MCBC) today announced its
results for the first quarter of 2019, reflecting continued strong
financial performance.
- Net income of $7.6 million in first quarter 2019 versus $5.8
million in first quarter 2018 – up 33%
- Growth in net interest income – up $1.8 million (13%) from
first quarter 2018
- Net interest margin of 3.54% in first quarter 2019, up from
3.34% in first quarter 2018
- Decrease in total non-interest expense – down $196,000 (-2%)
from first quarter 2018
- Loan portfolio balances up by $59 million (4%) from first
quarter 2018
- Core deposit balances up by $57 million (4%) from first quarter
2018
- Asset quality metrics remained strong
Macatawa reported net income of $7.6 million, or
$0.22 per diluted share, in the first quarter 2019 compared to $5.8
million, or $0.17 per diluted share, in the first quarter
2018.
"We are pleased to report a continuation of strong
performance for the first quarter of 2019,” said Ronald L. Haan,
President and CEO of the Company. “Revenue growth, primarily
from higher net interest income, along with a reduction in total
non-interest expense resulted in a 33 percent increase in net
income compared to the first quarter of 2018. Continued
growth in our balances of loans has positively affected our net
interest income while expenses have remained
well-controlled.”
Mr. Haan concluded: "Our commitment to
operating a well-disciplined company that delivers superior
financial services to the communities of Western Michigan has again
resulted in strong and consistent financial performance for our
shareholders. The banking environment in Western Michigan
remains highly competitive, and our continued success is a result
of the efforts of a strong and committed team of professional
bankers.”
Operating Results Net
interest income for the first quarter 2019 totaled $16.0 million,
an increase of $392,000 from the fourth quarter 2018 and an
increase of $1.8 million from the first quarter 2018. Net
interest margin was 3.54 percent, up 8 basis points from the fourth
quarter 2018, and up 20 basis points from the first quarter
2018. Net interest income for the first quarter 2019
benefitted from the collection of $251,000 in prepayment fees on
commercial loans, primarily related to one commercial
relationship. Prepayment fees were only $16,000 in the fourth
quarter 2018 and $2,000 in the first quarter 2018.
Average interest earning assets for the first
quarter 2019 increased $27.7 million from the fourth quarter 2018
and were up $103.3 million from the first quarter 2018. This
growth along with the improvement in net interest margin from
rising rates and the prepayment fees discussed above were the
primary contributors to the improvement in net interest income.
Non-interest income decreased $77,000 in the first
quarter 2019 compared to the fourth quarter 2018 and increased
$196,000 from the first quarter 2018. These changes were
largely due to fluctuations in gains on sales of mortgage
loans. Gains on sales of mortgage loans in the first quarter
2019 were down $80,000 compared to the fourth quarter 2018 and were
up $70,000 from the first quarter 2018. The Bank originated
$6.8 million in mortgage loans for sale in the first quarter 2019
compared to $9.9 million in the fourth quarter 2018 and $5.1
million in the first quarter 2018. The Bank originated $6.2
million in portfolio mortgage loans in the first quarter 2019
compared to $16.4 million in the fourth quarter 2018 and $16.1
million in the first quarter 2018. Investment service fees
were up $30,000 in the first quarter 2019 compared to the fourth
quarter 2018 and were up $72,000 compared to the first quarter
2018.
Non-interest expense was $11.2 million for the
first quarter 2019, compared to $10.4 million for the fourth
quarter 2018 and $11.4 million for the first quarter 2018.
The largest component of non-interest expense was salaries and
benefit expenses. Salaries and benefit expenses were down
$21,000 compared to the fourth quarter 2018 and were up $50,000
compared to the first quarter 2018. The increase compared to
the first quarter 2018 was due to annual merit and inflationary
increases in salaries. The decrease from the fourth quarter
2018 was due to a higher level of variable based compensation in
the fourth quarter 2018.
Nonperforming asset expenses increased $635,000 in
the first quarter 2019 compared to the fourth quarter 2018 and
decreased $408,000 compared to the first quarter 2018. Net
losses of $126,000 were incurred on sales of foreclosed properties
in the first quarter 2018, while net gains of $45,000 and $689,000
were incurred on sales in the first quarter 2019 and in the fourth
quarter 2018, respectively. Net gains in the fourth quarter
of 2018 were unusually high due to the sale of a property obtained
upon default of a loan for a gain of $675,000. Additionally,
writedowns on other real estate totaled $10,000 in the first
quarter 2019 compared to $32,000 in fourth quarter 2018 and
$280,000 in first quarter 2018. Other categories of
non-interest expense were relatively flat compared to the fourth
quarter 2018 and the first quarter 2018 due to a continued focus on
expense management.
Federal income tax expense was $1.7 million for the
first quarter 2019 compared to $1.7 million for the fourth quarter
2018 and $1.2 million for the first quarter 2018. The
effective tax rate was 18.3 percent for the first quarter 2019,
compared to 19.8 percent for the fourth quarter 2018 and 17.6
percent for the first quarter 2018.
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 first
quarter 2019, a negative provision for loan losses of $250,000 was
recorded in the first quarter 2019. Net loan recoveries for
the first quarter 2019 were $266,000, compared to fourth quarter
2018 net loan charge-offs of $776,000 and first quarter 2018 net
loan recoveries of $175,000. The Company has experienced net
loan recoveries in sixteen of the past seventeen quarters. Total
loans past due on payments by 30 days or more amounted to $674,000
at March 31, 2019, down 23 percent from $877,000 at December 31,
2018 and down 59 percent from $1.6 million at March 31, 2018.
Delinquency as a percentage of total loans was 0.05 percent at
March 31, 2019, well below the Company’s peer level.
The allowance for loan losses of $16.9 million was
1.22 percent of total loans at March 31, 2019, compared to 1.20
percent of total loans at December 31, 2018, and 1.26 percent at
March 31, 2018. The coverage ratio of allowance for loan
losses to nonperforming loans continued to be strong and
significantly exceeded 1-to-1 coverage at 41.3-to-1 as of March 31,
2019.
At March 31, 2019, the Company's nonperforming
loans were $409,000, representing 0.03 percent of total
loans. This compares to $1.3 million (0.09 percent of total
loans) at December 31, 2018 and $324,000 (0.02 percent of total
loans) at March 31, 2018. Other real estate owned and
repossessed assets were $3.3 million at March 31, 2019, compared to
$3.4 million at December 31, 2018 and $5.2 million at March 31,
2018. Total nonperforming assets, including other real estate owned
and nonperforming loans, decreased by $1.9 million, or 34 percent,
from March 31, 2018 to March 31, 2019.
A break-down of non-performing loans is shown in
the table below.
Dollars in 000s |
|
Mar 31, 2019 |
|
Dec 31, 2018 |
|
Sept 30, 2018 |
|
Jun 30, 2018 |
|
Mar 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real
Estate |
|
$ |
213 |
|
$ |
318 |
|
$ |
121 |
|
$ |
121 |
|
$ |
121 |
|
Commercial and
Industrial |
|
|
--- |
|
|
873 |
|
|
--- |
|
|
2 |
|
|
201 |
|
Total
Commercial Loans |
|
|
213 |
|
|
1,191 |
|
|
121 |
|
|
123 |
|
|
322 |
|
Residential Mortgage
Loans |
|
|
195 |
|
|
112 |
|
|
2 |
|
|
2 |
|
|
2 |
|
Consumer Loans |
|
|
1 |
|
|
1 |
|
|
--- |
|
|
--- |
|
|
--- |
|
Total
Non-Performing Loans |
|
$ |
409 |
|
$ |
1,304 |
|
$ |
123 |
|
$ |
125 |
|
$ |
324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-performing assets were $3.7 million, or
0.19 percent of total assets, at March 31, 2019. A break-down
of non-performing assets is shown in the table below.
Dollars in 000s |
|
Mar 31, 2019 |
|
Dec 31, 2018 |
|
Sept 30, 2018 |
|
Jun 30, 2018 |
|
Mar 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Performing
Loans |
|
$ |
409 |
|
$ |
1,304 |
|
$ |
123 |
|
$ |
125 |
|
$ |
324 |
|
Other Repossessed
Assets |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
--- |
|
Other Real Estate
Owned |
|
|
3,261 |
|
|
3,380 |
|
|
3,465 |
|
|
3,872 |
|
|
5,223 |
|
Total
Non-Performing Assets |
|
$ |
3,670 |
|
$ |
4,684 |
|
$ |
3,588 |
|
$ |
3,997 |
|
$ |
5,547 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet, Liquidity and
CapitalTotal assets were $1.93 billion at March 31, 2019,
a decrease of $49.2 million from $1.98 billion at December 31, 2018
and an increase of $62.1 million from $1.86 billion at March 31,
2018. Year-end assets typically increase due to seasonal
inflow of business and municipal deposits. Total loans
were $1.38 billion at March 31, 2019, a decrease of $21.1 million
from $1.41 billion at December 31, 2018 and an increase of $59.0
million from $1.33 billion at March 31, 2018.
Commercial loans increased by $59.7 million from
March 31, 2018 to March 31, 2019, along with an increase of $2.8
million in the residential mortgage portfolio, partially offset by
a decrease of $3.5 million in the consumer loan portfolio.
Commercial real estate loans increased by $42.9 million while
commercial and industrial loans increased by $16.8 million during
the same period.
The composition of the commercial loan portfolio is
shown in the table below:
Dollars in 000s |
|
Mar 31, 2019 |
|
Dec 31, 2018 |
|
Sept 30, 2018 |
|
Jun 30, 2018 |
|
Mar 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and
Development |
|
$ |
102,133 |
|
$ |
99,867 |
|
$ |
93,794 |
|
$ |
85,193 |
|
$ |
81,948 |
|
Other Commercial Real
Estate |
|
|
470,667 |
|
|
468,840 |
|
|
459,146 |
|
|
461,808 |
|
|
447,922 |
|
Commercial
Loans Secured by Real Estate |
|
|
572,800 |
|
|
568,707 |
|
|
552,940 |
|
|
547,001 |
|
|
529,870 |
|
Commercial and
Industrial |
|
|
493,891 |
|
|
513,347 |
|
|
467,703 |
|
|
458,468 |
|
|
477,088 |
|
Total
Commercial Loans |
|
$ |
1,066,691 |
|
$ |
1,082,054 |
|
$ |
1,020,643 |
|
$ |
1,005,469 |
|
$ |
1,006,958 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bond financing to commercial customers decreased by
$9.9 million from March 31, 2018 to March 31, 2019. This
decrease in bond financing combined with loan portfolio growth led
to a total growth rate of 4% from March 31, 2018 to March 31,
2019.
Total deposits were $1.62 billion at March 31,
2019, down $58.9 million from $1.68 billion at December 31, 2018
and were up $57.0 million, or 4 percent, from $1.56 billion at
March 31, 2018. The decrease in total deposits from December
31, 2018 was primarily in demand deposits (down $68.6 million) as
municipal and business customers deployed their seasonal increase
of year-end deposits in the first quarter 2019. Demand
deposits were up $21.9 million in the first quarter 2019 compared
to the first quarter 2018. Money market deposits and savings
deposits were down $5.0 million from the fourth quarter 2018 and
were down $10.2 million from the first quarter 2018.
Certificates of deposit were up $14.7 million in the first quarter
2019 compared to December 31, 2018 and were up $45.4 million
compared to March 31, 2018. As deposit rates have risen, the
Bank has experienced some shifting between deposit types. 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 March 31, 2019 compared to March 31, 2018 and
December 31, 2018 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 March
31, 2019.
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 five 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 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,
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,
2018. 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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st Qtr |
|
4th Qtr |
|
1st Qtr |
|
EARNINGS
SUMMARY |
|
|
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2018 |
|
|
Total interest
income |
|
|
|
|
|
$ |
19,189 |
|
|
$ |
18,496 |
|
|
$ |
16,019 |
|
|
Total interest
expense |
|
|
|
|
|
|
3,169 |
|
|
|
2,868 |
|
|
|
1,837 |
|
|
Net
interest income |
|
|
|
|
|
|
16,020 |
|
|
|
15,628 |
|
|
|
14,182 |
|
|
Provision for loan
losses |
|
|
|
|
|
|
(250 |
) |
|
|
850 |
|
|
|
(100 |
) |
|
Net
interest income after provision for loan losses |
|
|
|
|
|
|
16,270 |
|
|
|
14,778 |
|
|
|
14,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME |
|
|
|
|
|
|
|
|
|
|
|
Deposit service
charges |
|
|
|
|
|
|
1,050 |
|
|
|
1,135 |
|
|
|
1,049 |
|
|
Net gains on mortgage
loans |
|
|
|
|
|
|
211 |
|
|
|
291 |
|
|
|
141 |
|
|
Trust fees |
|
|
|
|
|
|
890 |
|
|
|
884 |
|
|
|
925 |
|
|
Other |
|
|
|
|
|
|
2,177 |
|
|
|
2,095 |
|
|
|
2,017 |
|
|
Total
non-interest income |
|
|
|
|
|
|
4,328 |
|
|
|
4,405 |
|
|
|
4,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits |
|
|
|
|
|
|
6,244 |
|
|
|
6,265 |
|
|
|
6,194 |
|
|
Occupancy |
|
|
|
|
|
|
1,093 |
|
|
|
948 |
|
|
|
1,072 |
|
|
Furniture and
equipment |
|
|
|
|
|
|
844 |
|
|
|
787 |
|
|
|
805 |
|
|
FDIC assessment |
|
|
|
|
|
|
120 |
|
|
|
127 |
|
|
|
132 |
|
|
Problem asset costs,
including losses and (gains) |
|
|
|
|
|
|
53 |
|
|
|
(582 |
) |
|
|
461 |
|
|
Other |
|
|
|
|
|
|
2,884 |
|
|
|
2,852 |
|
|
|
2,770 |
|
|
Total
non-interest expense |
|
|
|
|
|
|
11,238 |
|
|
|
10,397 |
|
|
|
11,434 |
|
|
Income before income
tax |
|
|
|
|
|
|
9,360 |
|
|
|
8,786 |
|
|
|
6,980 |
|
|
Income tax expense |
|
|
|
|
|
|
1,714 |
|
|
|
1,743 |
|
|
|
1,225 |
|
|
Net
income |
|
|
|
|
|
$ |
7,646 |
|
|
$ |
7,043 |
|
|
$ |
5,755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share |
|
|
|
|
|
$ |
0.22 |
|
|
$ |
0.21 |
|
|
$ |
0.17 |
|
|
Diluted earnings per
common share |
|
|
|
|
|
$ |
0.22 |
|
|
$ |
0.21 |
|
|
$ |
0.17 |
|
|
Return on average
assets |
|
|
|
|
|
|
1.57 |
% |
|
|
1.47 |
% |
|
|
1.25 |
% |
|
Return on average
equity |
|
|
|
|
|
|
15.81 |
% |
|
|
15.12 |
% |
|
|
13.24 |
% |
|
Net interest margin
(fully taxable equivalent) |
|
|
|
|
|
|
3.54 |
% |
|
|
3.46 |
% |
|
|
3.34 |
% |
|
Efficiency ratio |
|
|
|
|
|
|
55.23 |
% |
|
|
51.90 |
% |
|
|
62.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET
DATA |
|
|
|
|
|
March 31 |
|
December 31 |
|
March 31 |
|
Assets |
|
|
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2018 |
|
|
Cash and due from
banks |
|
|
|
|
|
$ |
28,143 |
|
|
$ |
40,526 |
|
|
$ |
26,954 |
|
|
Federal funds sold and
other short-term investments |
|
|
|
|
|
|
115,843 |
|
|
|
130,758 |
|
|
|
103,898 |
|
|
Debt securities
available for sale |
|
|
|
|
|
|
224,645 |
|
|
|
226,986 |
|
|
|
214,269 |
|
|
Debt securities held to
maturity |
|
|
|
|
|
|
70,336 |
|
|
|
70,334 |
|
|
|
90,513 |
|
|
Federal Home Loan Bank
Stock |
|
|
|
|
|
|
11,558 |
|
|
|
11,558 |
|
|
|
11,558 |
|
|
Loans held for
sale |
|
|
|
|
|
|
512 |
|
|
|
415 |
|
|
|
- |
|
|
Total loans |
|
|
|
|
|
|
1,384,567 |
|
|
|
1,405,658 |
|
|
|
1,325,545 |
|
|
Less allowance for loan
loss |
|
|
|
|
|
|
16,892 |
|
|
|
16,876 |
|
|
|
16,675 |
|
|
Net
loans |
|
|
|
|
|
|
1,367,675 |
|
|
|
1,388,782 |
|
|
|
1,308,870 |
|
|
Premises and equipment,
net |
|
|
|
|
|
|
44,805 |
|
|
|
44,862 |
|
|
|
46,110 |
|
|
Bank-owned life
insurance |
|
|
|
|
|
|
41,433 |
|
|
|
41,185 |
|
|
|
40,494 |
|
|
Other real estate
owned |
|
|
|
|
|
|
3,261 |
|
|
|
3,380 |
|
|
|
5,223 |
|
|
Other assets |
|
|
|
|
|
|
17,669 |
|
|
|
16,338 |
|
|
|
15,891 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets |
|
|
|
|
|
$ |
1,925,880 |
|
|
$ |
1,975,124 |
|
|
$ |
1,863,780 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits |
|
|
|
|
|
$ |
466,631 |
|
|
$ |
485,530 |
|
|
$ |
453,993 |
|
|
Interest-bearing
deposits |
|
|
|
|
|
|
1,151,233 |
|
|
|
1,191,209 |
|
|
|
1,106,879 |
|
|
Total
deposits |
|
|
|
|
|
|
1,617,864 |
|
|
|
1,676,739 |
|
|
|
1,560,872 |
|
|
Other borrowed
funds |
|
|
|
|
|
|
60,000 |
|
|
|
60,000 |
|
|
|
80,667 |
|
|
Long-term debt |
|
|
|
|
|
|
41,238 |
|
|
|
41,238 |
|
|
|
41,238 |
|
|
Other liabilities |
|
|
|
|
|
|
8,812 |
|
|
|
6,294 |
|
|
|
5,627 |
|
|
Total
Liabilities |
|
|
|
|
|
|
1,727,914 |
|
|
|
1,784,271 |
|
|
|
1,688,404 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity |
|
|
|
|
|
|
197,966 |
|
|
|
190,853 |
|
|
|
175,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities and Shareholders' Equity |
|
|
|
|
|
$ |
1,925,880 |
|
|
$ |
1,975,124 |
|
|
$ |
1,863,780 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MACATAWA BANK CORPORATION |
SELECTED CONSOLIDATED FINANCIAL
DATA |
(Unaudited) |
(Dollars in thousands except per share
information) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st Qtr |
|
4th Qtr |
|
3rd Qtr |
|
2nd Qtr |
|
1st Qtr |
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2018 |
|
|
EARNINGS
SUMMARY |
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
$ |
16,020 |
|
|
$ |
15,628 |
|
|
$ |
15,162 |
|
|
$ |
14,653 |
|
|
$ |
14,182 |
|
|
Provision for loan
losses |
|
|
(250 |
) |
|
|
850 |
|
|
|
- |
|
|
|
(300 |
) |
|
|
(100 |
) |
|
Total non-interest
income |
|
|
4,328 |
|
|
|
4,405 |
|
|
|
4,499 |
|
|
|
4,468 |
|
|
|
4,132 |
|
|
Total non-interest
expense |
|
|
11,238 |
|
|
|
10,397 |
|
|
|
11,239 |
|
|
|
11,259 |
|
|
|
11,434 |
|
|
Federal income tax
expense |
|
|
1,714 |
|
|
|
1,743 |
|
|
|
1,570 |
|
|
|
1,434 |
|
|
|
1,225 |
|
|
Net income |
|
$ |
7,646 |
|
|
$ |
7,043 |
|
|
$ |
6,852 |
|
|
$ |
6,728 |
|
|
$ |
5,755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share |
|
$ |
0.22 |
|
|
$ |
0.21 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.17 |
|
|
Diluted earnings per
common share |
|
$ |
0.22 |
|
|
$ |
0.21 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARKET
DATA |
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share |
|
$ |
5.81 |
|
|
$ |
5.61 |
|
|
$ |
5.41 |
|
|
$ |
5.28 |
|
|
$ |
5.16 |
|
|
Tangible book value per
common share |
|
$ |
5.81 |
|
|
$ |
5.61 |
|
|
$ |
5.41 |
|
|
$ |
5.28 |
|
|
$ |
5.16 |
|
|
Market value per common
share |
|
$ |
9.94 |
|
|
$ |
9.62 |
|
|
$ |
11.71 |
|
|
$ |
12.14 |
|
|
$ |
10.27 |
|
|
Average basic common
shares |
|
|
34,040,380 |
|
|
|
34,031,454 |
|
|
|
34,014,319 |
|
|
|
34,016,679 |
|
|
|
34,010,396 |
|
|
Average diluted common
shares |
|
|
34,040,380 |
|
|
|
34,031,454 |
|
|
|
34,014,319 |
|
|
|
34,016,679 |
|
|
|
34,011,592 |
|
|
Period end common
shares |
|
|
34,044,149 |
|
|
|
34,045,411 |
|
|
|
34,014,319 |
|
|
|
34,014,319 |
|
|
|
34,017,525 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE
RATIOS |
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets |
|
|
1.57 |
% |
|
|
1.47 |
% |
|
|
1.43 |
% |
|
|
1.44 |
% |
|
|
1.25 |
% |
|
Return on average
equity |
|
|
15.81 |
% |
|
|
15.12 |
% |
|
|
15.12 |
% |
|
|
15.23 |
% |
|
|
13.24 |
% |
|
Net interest margin
(fully taxable equivalent) |
|
|
3.54 |
% |
|
|
3.46 |
% |
|
|
3.37 |
% |
|
|
3.37 |
% |
|
|
3.34 |
% |
|
Efficiency ratio |
|
|
55.23 |
% |
|
|
51.90 |
% |
|
|
57.16 |
% |
|
|
58.88 |
% |
|
|
62.43 |
% |
|
Full-time equivalent
employees (period end) |
|
|
332 |
|
|
|
334 |
|
|
|
332 |
|
|
|
339 |
|
|
|
332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY |
|
|
|
|
|
|
|
|
|
|
|
Gross charge-offs |
|
$ |
157 |
|
|
$ |
1,179 |
|
|
$ |
30 |
|
|
$ |
30 |
|
|
$ |
97 |
|
|
Net
charge-offs/(recoveries) |
|
$ |
(266 |
) |
|
$ |
776 |
|
|
$ |
(108 |
) |
|
$ |
(320 |
) |
|
$ |
(175 |
) |
|
Net charge-offs to
average loans (annualized) |
|
|
-0.08 |
% |
|
|
0.23 |
% |
|
|
-0.03 |
% |
|
|
-0.10 |
% |
|
|
-0.05 |
% |
|
Nonperforming
loans |
|
$ |
409 |
|
|
$ |
1,304 |
|
|
$ |
123 |
|
|
$ |
125 |
|
|
$ |
324 |
|
|
Other real estate and
repossessed assets |
|
$ |
3,261 |
|
|
$ |
3,380 |
|
|
$ |
3,465 |
|
|
$ |
3,872 |
|
|
$ |
5,223 |
|
|
Nonperforming loans to
total loans |
|
|
0.03 |
% |
|
|
0.09 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.02 |
% |
|
Nonperforming assets to
total assets |
|
|
0.19 |
% |
|
|
0.24 |
% |
|
|
0.19 |
% |
|
|
0.21 |
% |
|
|
0.30 |
% |
|
Allowance for loan
losses |
|
$ |
16,892 |
|
|
$ |
16,876 |
|
|
$ |
16,803 |
|
|
$ |
16,695 |
|
|
$ |
16,675 |
|
|
Allowance for loan
losses to total loans |
|
|
1.22 |
% |
|
|
1.20 |
% |
|
|
1.25 |
% |
|
|
1.26 |
% |
|
|
1.26 |
% |
|
Allowance for loan
losses to nonperforming loans |
|
|
4130.07 |
% |
|
|
1293.18 |
% |
|
|
13660.98 |
% |
|
|
13356.00 |
% |
|
|
5146.60 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL |
|
|
|
|
|
|
|
|
|
|
|
Average equity to
average assets |
|
|
9.93 |
% |
|
|
9.71 |
% |
|
|
9.47 |
% |
|
|
9.44 |
% |
|
|
9.42 |
% |
|
Common equity tier 1 to
risk weighted assets (Consolidated) |
|
|
12.55 |
% |
|
|
12.01 |
% |
|
|
12.13 |
% |
|
|
11.83 |
% |
|
|
11.67 |
% |
|
Tier 1 capital to
average assets (Consolidated) |
|
|
12.22 |
% |
|
|
12.12 |
% |
|
|
11.90 |
% |
|
|
11.91 |
% |
|
|
11.83 |
% |
|
Total capital to
risk-weighted assets (Consolidated) |
|
|
16.14 |
% |
|
|
15.54 |
% |
|
|
15.79 |
% |
|
|
15.49 |
% |
|
|
15.36 |
% |
|
Common equity tier 1 to
risk weighted assets (Bank) |
|
|
14.66 |
% |
|
|
14.09 |
% |
|
|
14.28 |
% |
|
|
14.01 |
% |
|
|
13.87 |
% |
|
Tier 1 capital to
average assets (Bank) |
|
|
11.90 |
% |
|
|
11.78 |
% |
|
|
11.56 |
% |
|
|
11.58 |
% |
|
|
11.50 |
% |
|
Total capital to
risk-weighted assets (Bank) |
|
|
15.73 |
% |
|
|
15.13 |
% |
|
|
15.36 |
% |
|
|
15.09 |
% |
|
|
14.96 |
% |
|
Tangible common equity
to assets |
|
|
10.29 |
% |
|
|
9.67 |
% |
|
|
9.59 |
% |
|
|
9.60 |
% |
|
|
9.42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
END OF PERIOD
BALANCES |
|
|
|
|
|
|
|
|
|
|
|
Total portfolio
loans |
|
$ |
1,384,567 |
|
|
$ |
1,405,658 |
|
|
$ |
1,344,683 |
|
|
$ |
1,327,686 |
|
|
$ |
1,325,545 |
|
|
Earning assets |
|
|
1,809,469 |
|
|
|
1,849,630 |
|
|
|
1,804,672 |
|
|
|
1,751,167 |
|
|
|
1,751,315 |
|
|
Total assets |
|
|
1,925,880 |
|
|
|
1,975,124 |
|
|
|
1,919,273 |
|
|
|
1,872,541 |
|
|
|
1,863,780 |
|
|
Deposits |
|
|
1,617,864 |
|
|
|
1,676,739 |
|
|
|
1,617,743 |
|
|
|
1,580,461 |
|
|
|
1,560,872 |
|
|
Total shareholders'
equity |
|
|
197,966 |
|
|
|
190,853 |
|
|
|
183,976 |
|
|
|
179,714 |
|
|
|
175,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE
BALANCES |
|
|
|
|
|
|
|
|
|
|
|
Total portfolio
loans |
|
$ |
1,399,464 |
|
|
$ |
1,363,548 |
|
|
$ |
1,325,268 |
|
|
$ |
1,327,408 |
|
|
$ |
1,314,838 |
|
|
Earning assets |
|
|
1,833,924 |
|
|
|
1,806,229 |
|
|
|
1,799,600 |
|
|
|
1,756,909 |
|
|
|
1,730,576 |
|
|
Total assets |
|
|
1,948,301 |
|
|
|
1,918,543 |
|
|
|
1,915,655 |
|
|
|
1,872,559 |
|
|
|
1,845,911 |
|
|
Deposits |
|
|
1,646,268 |
|
|
|
1,618,861 |
|
|
|
1,614,151 |
|
|
|
1,575,408 |
|
|
|
1,537,376 |
|
|
Total shareholders'
equity |
|
|
193,463 |
|
|
|
186,361 |
|
|
|
181,329 |
|
|
|
176,749 |
|
|
|
173,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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