SOURCE: Mackinac Financial Corporation

Mackinac Financial Corporation

August 04, 2016 12:08 ET

Mackinac Financial Corporation Announces Six Month and Second Quarter 2016 Results

MANISTIQUE, MI--(Marketwired - Aug 4, 2016) - Mackinac Financial Corporation (NASDAQ: MFNC) (the "Corporation"), the bank holding company for mBank, today announced a net loss, after certain acquisition transaction expenses described below, for the second quarter 2016 of $.125 million or ($.02) per share compared to net income of $1.614 million, or $.26 per share, for the second quarter of 2015 and $1.132 million, or $.18 per share, in the 2016 first quarter. Net income for the first six months of 2016 totaled $1.007 million, or $.16 per share, after acquisition transaction expenses, compared to $2.985 million, or $.48 per share, for the same period in 2015. Total assets of the Corporation at June 30, 2016 totaled $892.238 million, compared to $735.338 million at June 30, 2015. Weighted average shares for 2016 totaled 6,231,246, compared to 6,245,553 shares in the same period of 2015.

On April 29, 2016, the company completed the acquisition of First National Bank of Eagle River ("Eagle River"). In connection with this acquisition, the Corporation had GAAP pre-tax transaction related expenses totaling $2.516 million. These one-time costs, largely associated with the early termination of the Eagle River data processing system, reduced the reported net income for the quarter by $1.712 million, or $.27 per share, on an after tax basis. While the data processing termination fee was incurred by Eagle River and factored into the purchase price paid for the assets, GAAP business combination guidance requires the Corporation to expense the entire $1.585 million in the second quarter of 2016. The Corporation did realize the entire tax benefit from the expense in the second quarter. The accounting treatment of the termination fee does not adversely affect the overall economics of the purchase. All expenses were a component of management's price and impact analysis of the transaction. The adjusted net income for the second quarter of 2016 (exclusive of the transaction related expenses) would equate to $1.588 million, or $.25 per share. Adjusted net income for the first six months of 2016 for the Corporation is $2.770 million, or $.45 per share.

Paul D. Tobias, Chairman and Chief Executive Officer of the Corporation, commenting on performance, stated, "We are very pleased with our recent acquisition of Eagle River and the continued organic growth of our company through the first six months of the year. We anticipated the nonrecurring expenses that were booked along with various purchase accounting items in the second quarter in our pre-transaction due diligence. While GAAP treatment of these expenses reduced our second quarter and six month reported results, the economics of the transaction have not been negatively impacted and we expect to achieve the accretion targets we discussed in our transaction announcement in the second half of the year."

Key highlights for the first six months of 2016 results include:

  • mBank, the Corporation's subsidiary bank, recorded six-month adjusted net income of $3.270 million compared to $3.230 million in 2015. Inclusive of $2.216 million of transaction related expenses noted above ($1.462 million after tax), net income was $1.807 million for the first six months of 2016.

  • The April 29, 2016 acquisition of First National Bank of Eagle River, a $127 million asset bank headquartered in the Northern Wisconsin with two banking locations in Vilas County and one in Oneida County. With this transaction, total assets of the Corporation were $892 million at period end.

  • The May 24, 2016 announcement of the execution of a definitive agreement to acquire Niagara Bancorporation ("Niagara"), the holding company for First National Bank of Niagara (Wisconsin). At the time of the announcement, Niagara had total assets of approximately $70 million, loans of $35 million and deposits of $60 million. Niagara operates four full-service banking centers. The transaction is expected to close late in the third quarter of 2016.

  • Total interest income of $17.4 million through June 2016 compared to $16.7 million for the same period in 2015.

  • Margin remains solid, at 4.25% with disciplined pricing of loan and deposit products. Net interest income increased from $14.520 million in 2015 to $15.284 million in 2016, a 5% increase.

  • Credit quality remains strong with a Texas Ratio of 9.13% compared to 15.76% one year ago, and nonperforming assets of $6.813 million, or .76% of total assets, compared with $12.044 million, or 1.64% of total assets, for the same period in 2015.

  • Healthy new loan production of $125 million through June 2016 compared to $115 million through June 2015.

Loans and Nonperforming Assets

Total loans at June 30, 2016 were $725.635 million, a $110.388 million increase from $615.247 million at June 30, 2015, of which approximately $84.0 million is attributable to the Eagle River acquisition. In addition to the forementioned balance sheet totals, the Corporation services $225.746 million of sold mortgage loans and $50.501 million of sold SBA and USDA loans. Total loans under management now total $1.002 billion.

New loan production totaled $124.9 million, with the Upper Peninsula contributing $73.8 million, the Northern Lower Peninsula $24.9 million, Southeast Michigan $24.2 million, Wisconsin $2.0 million and the asset based lending division ("ABL") $5.1 million. Commercial loan production accounted for $74.3 million of the total, with consumer loans, primarily 1-4 family mortgages, totaling $50.6 million, inclusive of $31.9 million of secondary market origination. Commenting on new loan production and overall lending activities, Kelly W. George, President and CEO of mBank stated, "We are pleased with our solid loan production thus far in 2016. Given the competition among financial institutions for good loan opportunities, we like the results from the first two quarters and the way we have positioned ourselves entering the latter part of the summer, historically a very busy time of the year for loan activity at the bank. We are particularly pleased with the continued uptick in our secondary market mortgage-lending sector, which has seen an increase of 42% year over year with strong momentum. This increase has offset some the sluggish originations of our SBA and ABL during the first six months of 2016. These opportunities have lagged due to the continued compressed interest rates and credit cycle which has resulted in more lenders doing these types of loans on a conventional basis. We do have some larger SBA loans in the pipeline approved, which we hope to close and sell off the guarantees in the second half of the year to enhance non-interest income."

Nonperforming loans totaled $3.321 million, or .46% of total loans at June 30, 2016 compared to $9.652 million, or 1.57% of total loans at June 30, 2015. Total loan delinquencies greater than 30 days resided at a nominal .85%, or $6.169 million. George, commenting on credit quality stated, "Our continued diligence on all aspects of credit administration has allowed us to maintain comparatively low non-performing assets and delinquencies. While many lenders remain aggressive in this environment, we continue to adhere to our underwriting standards, which have proven successful in maintaining our solid asset quality metrics and portfolio performance, while still generating very good loan production. We also believe that entering into the Wisconsin market helps spread risk and further diversify our loan mix and are confident that our purchase accounting marks on the loans acquired in the Eagle River transaction will prove as accurate as our Peninsula acquisition accounting marks, resulting in accretive impacts."

Margin / Deposit Analysis

Net interest income for the first six months of 2016 increased to $15.284 million, a 4.25% net interest margin compared to $14.520 million, or 4.35%, in 2015. Total deposits of $738.363 million June 30, 2016 included approximately $104 million in deposits acquired with the Eagle River acquisition. The growth of deposits was approximately $149 million from 2015 period end. George, commenting on core deposits and overall liquidity, stated, "The Corporation maintains a strong liquidity position to fund operations and loan growth. We will remain committed to our core banking philosophy, which emphasizes funding loan growth with core deposits to build long-term franchise value and help grow the economic bases in our local communities. We also expect further core deposit growth in our new Wisconsin markets. We will remain prudent in our overall liability pricing and funding strategies to maximize our margin without taking unnecessary longer-term interest rate risk on either side of the balance sheet. In total, we remain well positioned for a rising interest rate scenario with our current balance sheet structure."

Noninterest Income/Expense

Noninterest income, at $1.523 million, was $.397 million lower than the June 30, 2015 level of $1.974 million. Noninterest income decreased primarily because of a reduced level of fees from sales on SBA loans, along with less income from the service retained mortgage portfolio. Noninterest expense, at $15.091 million, included $2.516 million of transaction-related expenses. Excluding these charges, noninterest expense totaled $12.578 million, compared to $11.456 million in 2015. The largest increase from 2015 was in salaries and benefits primarily related to the acquisition of Eagle River and some increased governance and infrastructure costs to ensure prudent risk management and operational efficiencies throughout the Corporation. Management continues to monitor and maintain its focus on cost control as it manages a growing company in all aspects, including the near term pending First National Bank of Niagara acquisition.

Assets and Capital

Total assets of the Corporation at June 30, 2016 were $892.328 million, up $156.990 million from the $735.338 million of total assets at June 30, 2016. The Corporation's internal growth (exclusive of the Eagle River acquisition) since June 30, 2015 amounted to approximately $31 million, or 4%. Total common shareholders' equity at June 30, 2016 was $77.081 million, or $12.37 per share, compared to $75.746 million, or $12.15 per share at June 30, 2015. Consolidated Tier 1 Capital resides at 8.76% (well capitalized) and Total Capital at 9.39% (adequately capitalized). Bank Tier 1 Capital is 11.65% (well capitalized) and Total Capital at 12.28% (well capitalized).

In closure, Mr. Tobias stated, "Over the last 24 months we have found three acquisitions that will be accretive to earnings per share and shareholder value. These transactions create some noise in the form of transaction expenses. We are confident that our synergies, cost savings and revenue growth in new markets will be well worth the expenses incurred. Our growing earnings run rate will become more clear as the year progresses."

Mackinac Financial Corporation is a registered bank holding company formed under the Bank Holding Company Act of 1956 with assets in excess of $890 million and whose common stock is traded on the NASDAQ stock market as "MFNC." The principal subsidiary of the Corporation is mBank. Headquartered in Manistique, Michigan, mBank has 20 branch locations; thirteen in the Upper Peninsula, three in the Northern Lower Peninsula, one in Oakland County, Michigan and three in Northern Wisconsin. The Company's banking services include commercial lending and treasury management products and services geared toward small to mid-sized businesses, as well as a full array of personal and business deposit products and consumer loans.

Forward-Looking Statements

This release contains certain forward-looking statements. Words such as "anticipates," "believes," "estimates," "expects," "intends," "should," "will," "view," and variations of such words and similar expressions are intended to identify forward-looking statements: as defined by the Private Securities Litigation Reform Act of 1995. These statements reflect management's current beliefs as to expected outcomes of future events and are not guarantees of future performance. These statements involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood, and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such forward-looking statements. Factors that could cause a difference include among others: changes in the national and local economies or market conditions; changes in interest rates and banking regulations; the impact of competition from traditional or new sources; and the possibility that anticipated cost savings and revenue enhancements from mergers and acquisitions, bank consolidations, branch closings and other sources may not be fully realized at all or within specified time frames as well as other risks and uncertainties including but not limited to those detailed from time to time in filings of the Company with the Securities and Exchange Commission. These and other factors may cause decisions and actual results to differ materially from current expectations. Mackinac Financial Corporation undertakes no obligation to revise, update, or clarify forward-looking statements to reflect events or conditions after the date of this release.

   
MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES  
SELECTED FINANCIAL HIGHLIGHTS  
                   



(Dollars in thousands, except per share data)
  As of and For the
Period Ending
June 30,
2016
    As of and For the
Year Ending
December 31,
2015
    As of and For the
Period Ending
June 30,
2015
 
    (Unaudited)     (Unaudited)     (Unaudited)  
Selected Financial Condition Data (at end of period):                        
Assets   $ 892,328     $ 739,269     $ 735,338  
Loans     725,635       618,394       615,247  
Investment securities     71,114       53,728       60,561  
Deposits     738,363       610,323       588,821  
Borrowings     70,604       45,754       64,483  
Shareholders' equity     77,081       76,602       75,746  
                         
                         
Selected Statements of Income Data (six months and year ended):                        
Net interest income   $ 15,284     $ 29,120     $ 14,520  
Income before taxes     1,566       7,929       4,533  
Net income     1,007       5,596       2,985  
Income per common share - Basic     .16       .90       .48  
Income per common share - Diluted     .16       .89       .48  
Weighted average shares outstanding     6,220,906       6,247,416       6,250,984  
Weighted average shares outstanding- Diluted     6,241,367       6,278,817       6,278,498  
                         
Three Months Ended:                        
Net interest income   $ 7,996     $ 7,365     $ 7,000  
Income before taxes     (151 )     1,852       2,450  
Net income     (125 )     1,593       1,614  
Income per common share - Basic     (.02 )     .26       .26  
Income per common share - Diluted     (.02 )     .26       .26  
Weighted average shares outstanding     6,227,730       6,225,614       6,245,553  
Weighted average shares outstanding- Diluted     6,256,386       6,257,180       6,288,147  
                         
Selected Financial Ratios and Other Data:                        
Performance Ratios:                        
Net interest margin     4.25 %     4.30 %     4.35 %
Return on average assets     .26       .76       .82  
Return on average equity     2.58       7.41       8.03  
                         
Average total assets   $ 785,881     $ 738,688     $ 735,225  
Average total shareholders' equity     78,383       75,545       74,965  
Average loans to average deposits ratio     101.68 %     100.52 %     100.99 %
                         
                         
Common Share Data at end of period:                        
Market price per common share   $ 11.01     $ 11.49     $ 10.53  
Book value per common share     12.38       12.32       12.15  
Tangible book value per share     11.23       11.54       11.35  
Dividends paid per share, annualized     .40       .400       .30  
Common shares outstanding     6,226,246       6,217,620       6,236,250  
                         
Other Data at end of period:                        
Allowance for loan losses   $ 4,733     $ 5,004     $ 5,600  
Non-performing assets   $ 6,813     $ 4,863     $ 12,044  
Allowance for loan losses to total loans     .65 %     .81 %     .91 %
Non-performing assets to total assets     .76 %     .66 %     1.64 %
Texas ratio     9.13 %     6.34 %     15.76 %
                         
Number of:                        
  Branch locations     20       17       17  
  FTE Employees     209       173       168  
                           
                           
                           
MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES  
CONSOLIDATED BALANCE SHEETS  
   
    June 30,     December 31,     June 30,  
    2016     2015     2015  
    (Unaudited)           (Unaudited)  
ASSETS                        
                         
Cash and due from banks   $ 40,226     $ 25,005     $ 16,658  
Federal funds sold     9       3       3  
  Cash and cash equivalents     40,235       25,008       16,661  
                         
Interest-bearing deposits in other financial institutions     7,184       5,089       5,338  
Securities available for sale     71,114       53,728       60,561  
Federal Home Loan Bank stock     2,639       2,169       2,169  
                         
Loans:                        
  Commercial     503,508       450,275       447,086  
  Mortgage     206,007       152,272       150,998  
  Consumer     16,120       15,847       17,163  
    Total Loans     725,635       618,394       615,247  
      Allowance for loan losses     (4,733 )     (5,004 )     (5,600 )
  Net loans     720,902       613,390       609,647  
                         
Premises and equipment     14,699       12,524       12,584  
Other real estate held for sale     3,492       2,324       2,392  
Deferred tax asset     10,147       9,213       10,013  
Deposit based intangibles     1,992       1,076       1,136  
Goodwill     5,173       3,805       3,805  
Other assets     14,751       10,943       11,032  
                         
TOTAL ASSETS   $ 892,328     $ 739,269     $ 735,338  
                         
LIABILITIES AND SHAREHOLDERS' EQUITY                        
                         
LIABILITIES:                        
Deposits:                        
  Noninterest bearing deposits   $ 149,435     $ 122,775     $ 108,068  
  NOW, money market, interest checking     251,140       202,784       198,482  
  Savings     48,978       30,882       29,921  
  CDs < $250,000     130,053       124,084       153,532  
  CDs > $250,000     5,417       8,532       8,781  
  Brokered     153,340       121,266       90,037  
    Total deposits     738,363       610,323       588,821  
                         
  Borrowings     70,604       45,754       49,483  
  Fed funds purchased     -       -       15,000  
  Other liabilities     6,280       6,590       6,288  
    Total liabilities     815,247       662,667       659,592  
                         
SHAREHOLDERS' EQUITY:                        
  Preferred stock - No par value:                        
    Authorized 500,000 shares, Issued and outstanding - none     -       -       -  
  Common stock and additional paid in capital - No par value                        
    Authorized - 18,000,000 shares                        
    Issued and outstanding - 6,226,246; 6,217,620; and 6,239,250 shares respectively     61,283       61,133       61,461  
    Retained earnings     14,982       15,221       13,851  
    Accumulated other comprehensive income                        
      Unrealized gains on available for sale securities     865       297       483  
      Minimum pension liability     (49 )     (49 )     (49 )
                           
    Total shareholders' equity     77,081       76,602       75,746  
                         
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 892,328     $ 739,269     $ 735,338  
                         
                         
                         
MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
 
    Three Months Ended   Six Months Ended
    June 30,   June 30,
    2016     2015   2016     2015
    (Unaudited)   (Unaudited)
INTEREST INCOME:                            
  Interest and fees on loans:                            
    Taxable   $ 8,684     $ 7,742   $ 16,644     $ 15,967
    Tax-exempt     13       3     15       6
  Interest on securities:                            
    Taxable     304       261     566       563
    Tax-exempt     26       53     57       94
  Other interest income     66       40     121       102
    Total interest income     9,093       8,099     17,403       16,732
                             
INTEREST EXPENSE:                            
  Deposits     771       801     1,540       1,624
  Borrowings     326       298     579       588
    Total interest expense     1,097       1,099     2,119       2,212
                             
Net interest income     7,996       7,000     15,284       14,520
Provision for loan losses     150       200     150       505
Net interest income after provision for loan losses     7,846       6,800     15,134       14,015
                             
OTHER INCOME:                            
  Deposit service fees     248       244     464       428
  Income from loans sold on the secondary market     339       282     606       449
  SBA/USDA loan sale gains     166       282     166       400
  Mortgage servicing income     (8 )     199     (62 )     230
  Net security gains     12       259     109       269
  Other     139       84     240       198
    Total other income     896       1,350     1,523       1,974
                             
OTHER EXPENSE:                            
  Salaries and employee benefits     3,519       2,916     6,906       5,963
  Occupancy     640       626     1,280       1,202
  Furniture and equipment     425       390     808       789
  Data processing     333       359     678       714
  Advertising     181       120     337       246
  Professional service fees     257       279     498       580
  Loan and deposit     155       125     282       263
  Writedowns and losses on other real estate held for sale     (14 )     20     2       37
  FDIC insurance assessment     117       140     225       248
  Telephone     122       106     234       238
  Transaction related expenses     2,449       -     2,516       -
  Other     709       619     1,325       1,176
    Total other expenses     8,893       5,700     15,091       11,456
                             
Income before provision for income taxes     (151 )     2,450     1,566       4,533
Provision for income taxes     (26 )     836     559       1,548
                             
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS     (125 )     1,614     1,007       2,985
                             
                             
INCOME PER COMMON SHARE:                            
  Basic   $ (.02 )   $ .26   $ .16     $ .48
  Diluted   $ (.02 )   $ .26   $ .16     $ .48
                               
                               
                               
MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES  
LOAN PORTFOLIO AND CREDIT QUALITY  
   
(Dollars in thousands)  
   
Loan Portfolio Balances (at end of period):  
                   
    June 30,     December 31,     June 30,  
    2016     2015     2015  
    (Unaudited)     (Unaudited)     (Unaudited)  
Commercial Loans:                        
Real estate - operators of nonresidential buildings   $ 111,523     $ 102,620     $ 102,380  
Hospitality and tourism     48,295       41,300       42,391  
Lessors of residential buildings     26,662       25,930       22,419  
Gasoline stations and convenience stores     20,582       21,647       14,601  
Commercial construction     18,576       15,330       19,868  
Real estate agents and managers     16,655       11,225       9,533  
Other     261,215       232,223       235,894  
  Total Commercial Loans     503,508       450,275       447,086  
                         
1-4 family residential real estate     194,167       140,502       142,276  
Consumer     16,120       15,847       17,163  
Consumer construction     11,840       11,770       8,722  
                         
  Total Loans   $ 725,635     $ 618,394     $ 615,247  
   
   
Credit Quality (at end of period):  
                         
    June 30,     December 31,     June 30,  
    2016     2015     2015  
    (Unaudited)     (Unaudited)     (Unaudited)  
Nonperforming Assets :                        
Nonaccrual loans   $ 3,177     $ 2,353     $ 8,690  
Loans past due 90 days or more             32       140  
Restructured loans     144       154       822  
  Total nonperforming loans     3,321       2,539       9,652  
Other real estate owned     3,492       2,324       2,392  
  Total nonperforming assets   $ 6,813     $ 4,863     $ 12,044  
Nonperforming loans as a % of loans     .46 %     .41 %     1.57 %
Nonperforming assets as a % of assets     .76 %     .66 %     1.64 %
Reserve for Loan Losses:                        
At period end   $ 4,733     $ 5,004     $ 5,600  
As a % of average loans     .73 %     .83 %     .93 %
As a % of nonperforming loans     142.52 %     197.09 %     58.02 %
As a % of nonaccrual loans     148.98 %     212.66 %     64.44 %
Texas Ratio     9.13 %     6.34 %     15.76 %
                         
Charge-off Information (year to date):                        
  Average loans   $ 652,573     $ 602,904     $ 603,711  
  Net charge-offs (recoveries)   $ 421     $ 1,340     $ 44  
  Charge-offs as a % of average loans, annualized     .13 %     .22 %     .01 %
                           
                           
                           
MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES  
QUARTERLY FINANCIAL HIGHLIGHTS  
                       
    QUARTER ENDED  
    (Unaudited)  
    June 30,   March 31,   December 31,   September 30,   June 30,  
    2016   2016   2015   2015   2015  
BALANCE SHEET (Dollars in thousands)                                
                                 
Total loans   $ 725,635   $ 618,625   $ 618,394   $ 619,906   $ 615,247  
Allowance for loan losses     (4,733 )   (4,824 )   (5,004 )   (5,779 )   (5,600 )
  Total loans, net     720,902     613,801     613,390     614,127     609,647  
Total assets     892,328     732,932     739,269     754,972     735,338  
Core deposits     579,606     473,761     480,525     509,466     490,003  
Noncore deposits     158,757     119,217     129,798     112,868     98,818  
  Total deposits     738,363     592,978     610,323     622,334     588,821  
Total borrowings     70,604     56,454     45,754     49,593     64,483  
Total shareholders' equity     77,081     77,395     76,602     76,091     75,746  
Total tangible equity     69,916     72,544     71,721     71,180     70,805  
Total shares outstanding     6,226,246     6,231,246     6,217,620     6,249,595     6,236,250  
Weighted average shares outstanding     6,227,730     6,214,083     6,225,614     6,247,416     6,245,553  
                                 
AVERAGE BALANCES (Dollars in thousands)                                
                                 
Assets   $ 834,674   $ 737,088   $ 733,035   $ 751,153   $ 732,979  
Loans     689,462     615,684     613,846     614,315     607,330  
Deposits     679,183     604,363     602,857     624,528     594,266  
Equity     79,481     77,284     75,871     76,362     75,564  
                                 
INCOME STATEMENT (Dollars in thousands)                                
                                 
Net interest income   $ 7,996   $ 7,288   $ 7,365   $ 7,235   $ 7,000  
Provision for loan losses     150     -     349     350     200  
  Net interest income after provision     7,846     7,288     7,016     6,885     6,800  
Total noninterest income     896     627     1,142     773     1,350  
Total noninterest expense     8,893     6,198     6,306     6,114     5,700  
Income before taxes     (151 )   1,717     1,852     1,544     2,450  
Provision for income taxes     (26 )   585     259     526     836  
Net income available to common shareholders   $ (125 ) $ 1,132   $ 1,593   $ 1,018   $ 1,614  
Income pre-tax, pre-provision   $ (1 ) $ 1,717   $ 2,201   $ 1,894   $ 2,650  
                                 
PER SHARE DATA                                
                                 
Earnings   $ (.02 ) $ .18   $ .26   $ .16   $ .26  
Book value per common share     12.38     12.42     12.32     12.18     12.15  
Tangible book value per share     11.23     11.64     11.54     11.39     11.35  
Market value, closing price     11.01     10.25     11.49     10.10     10.53  
Dividends per share     .100     .100     .100     .100     .075  
                                 
ASSET QUALITY RATIOS                                
                                 
Nonperforming loans/total loans     .46 %   .28 %   .50 %   1.30 %   1.57 %
Nonperforming assets/total assets     .76     .60     .73     1.37     1.64  
Allowance for loan losses/total loans     .65     .78     .81     .93     .91  
Allowance for loan losses/nonperforming loans     142.52     280.96     197.09     71.99     58.02  
Texas ratio (1)     9.13     5.61     6.34     13.41     15.76  
                                 
PROFITABILITY RATIOS                                
                                 
Return on average assets     (.06 )%   .62 %   .86 %   .54 %   .88 %
Return on average equity     (.63 )   5.89     8.33     5.28     8.57  
Net interest margin     4.19     4.33     4.34     4.18     4.17  
Average loans/average deposits     101.51     101.87     101.82     98.36     102.20  
                                 
CAPITAL ADEQUACY RATIOS                                
                                 
Tier 1 leverage ratio     7.68 %   9.55 %   9.81 %   9.02 %   9.14 %
Tier 1 capital to risk weighted assets     8.76     10.82     10.23     10.28     10.18  
Total capital to risk weighted assets     9.39     11.57     11.94     11.17     11.04  
Average equity/average assets (for the quarter)     9.52     10.49     11.19     10.19     10.31  
Tangible equity/tangible assets (at quarter end)     7.90     9.96     9.77     9.49     9.68  
                                 
(1) Texas ratio equals nonperforming assets divided by tangible shareholders' equity plus allowance for loan losses
 

Contact Information