MANISTIQUE, MI--(Marketwired - Apr 29, 2014) - Mackinac Financial Corporation (
Shareholders' equity at March 31, 2014 totaled $65.730 million, compared to $73.039 million on March 31, 2013, a decrease of $7.309 million. Book value of common shareholders' equity was $11.89 per share at March 31, 2014 compared to $11.16 per share at March 31, 2013. The decrease in equity, between periods, includes the redemption of the Preferred Series A Stock of $11 million. Weighted average shares outstanding totaled 5,530,908 shares in the 2014 first quarter compared to 5,559,859 for the same period in 2013.
Some highlights for the first quarter include:
- Strong credit quality with a Texas ratio of 5.18% compared to 9.81% one year ago.
- Strong net interest margin improving to 4.25% compared to 4.18% for the first quarter of 2013.
- Total new loan production of $32.1 million.
- Increase of dividend on common stock to $.05 per share from $.04 per share one year ago.
- Continued success with SBA/USDA lending programs with loan sale gains of $.382 million.
Loans and Non-performing Assets
Total loans at March 31, 2014 were $485.862 million, a 7.01% increase from the $454.051 million at March 31, 2013 and up $2.030 million from year-end 2013 total loans of $483.832 million. New loan production totaled $31.1 million with the Upper Peninsula contributing $21.7 million, the Northern Lower Peninsula $8.0 million and Southeast Michigan $1.4 million. Commercial loan production accounted for $19.1 million of the quarter's total, with consumer, primarily 1-4 family mortgages of $12.0 million. Commenting on new loan production and overall lending activities, Kelly W. George, President and CEO of mBank, stated, "We were generally pleased with our overall loan production for the quarter in light of the very harsh and elongated winter in Northern Michigan where the majority of our lending activities reside, especially within the retail loan segments. Loan balance growth was stymied due to various commercial loan pay downs for existing clients as they moved to reduce debt with excess cash reserves, and a few relationships exited as the bank elected to not match various terms and rates that were outside of our acceptable parameters. We continue to see more competitive commercial lending rates and terms within all our markets as more financial intuitions look to grow commercial loans in this interest rate environment that has materially slowed the recent healthy mortgage lending business for many. Our loan pipeline remains good for both traditional commercial and SBA loans, and we have begun to see an increase in mortgage lending activities as we move into our customary higher volume lending seasons in the North through the second and third quarters."
Nonperforming loans totaled $1.491 million, .31% of total loans at March 31, 2014 compared to $3.833 million, or .84% of total loans at March 31, 2013 and down $.533 million from December 31, 2013. Nonperforming assets were reduced by $4.001 million from a year ago and stood at .63% of total assets and equated to $3.657 million. Total loan delinquencies greater than 30 days resided at a nominal .25% or $1.212 million. George, commenting on credit quality, stated, "Our credit risk quality metrics and overall loan portfolio payment performance remains strong. We are diligent within our loan origination structures and will not stretch our prudent lending parameters for new loans. We continue to timely identify any problems so they can be evaluated and action plans put in place to either rehabilitate the credit or exit it from the bank in a timely manner to alleviate any excessive ongoing administrative costs."
Margin Analysis
Net interest income in the first quarter of 2014 increased to $5.593 million, 4.25%, compared to $5.156 million, or 4.18%, in the first quarter of 2013. The interest margin increase was largely due to decreased overall funding costs. George stated, "We will continue our efforts to maintain our strong net interest margin within this historically low interest rate cycle though the use of continued targeted funding strategies and disciplined loan pricing and terms in efforts to mitigate longer term interest rate risk. We continue to look for any investment opportunities that fit our balance sheet structure but will not take unnecessary risk associated with investment portfolio opportunities that improperly extend duration in order to enhance short term yields in our collective judgments. We will remain committed to our core banking philosophy which emphasizes loan growth as the best asset to invest in to benefit and help grow the economic bases in our local communities, which in turn also provides for the best overall returns to our shareholders."
Deposits
Total deposits of $475.710 million at March 31, 2014 increased by 11.87% from deposits of $425.236 million on March 31, 2013 and were up $9.411 million from year end deposits $466.299 million. The overall increase in deposits for the first three months of 2014 from year end is comprised of an increase in core deposits, mostly in certificates of deposits. George, commenting on core deposits and overall liquidity needs, stated, "The Corporation maintains a sound liquidity position to fund operations and loan growth. We proactively review our pricing levels within the different segments of our deposit products in order to best manage our net interest margin to capture as many dollars as we can. We will also utilize alternative funding sources such as internet CDs and small levels of wholesale deposits when deemed necessary to structure different liabilities to match asset growth durations, and cover any potential short term funding gaps that could arise."
Noninterest Income/Expense
Noninterest income, at $.691 million in the first quarter of 2014, decreased $.067 million from the first quarter 2013 level of $.758 million. The primary driver for the decrease was a reduced level of fees and gains on the sale of loans from secondary market mortgage lending of $.196 million from prior year period. Noninterest expense, at $5.107 million in the first quarter of 2014, increased $.796 million, or 18.47% from the first quarter of 2013. The largest increase from the first quarter of 2013 was in salaries and benefits, largely reflective of the compensation packages for the staff up of our asset based lending subsidiary formed in the third quarter of 2013. We also had increased occupancy costs between periods due primarily to our new Marquette branch office, which we moved into late in 2013. We incurred some additional legal costs as well in the first quarter of 2014 for the exploration of an acquisition and additional SEC filing work needed this year.
Assets and Capital
Total assets of the Corporation at March 31, 2014 were $583.592 million, up 7.69% from the $541.896 million reported at March 31, 2013 and up $10.792 million from the $572.800 million of total assets at year-end 2013. The increase in assets during the first quarter was primarily due to increased liquidity, as we grew our deposits in anticipation of loan funding needs. Common shareholders' equity at March 31, 2014 totaled $65.730 million, or $11.89 per share, compared to $62.039 million, or $11.16 per share on March 31, 2013. The Corporation and the Bank are both "well-capitalized" with Tier 1 Capital at the Corporation of 10.25% and 10.10% at the Bank.
Paul D. Tobias, Chairman and Chief Executive Officer of Mackinac, concluded, "We are looking forward to another year of progress in the organic growth of our Corporation which will be enhanced from the recent startup of our asset based lending subsidiary and our proven track record of core bank balance sheet growth with good quality loans and sustained levels of SBA/USDA lending. We also believe that we will have accretive opportunities for acquisitions that augment our footprint as the regulatory and operating costs for smaller banks lead them to consider a sale. We remain committed to our shareholders in all of our endeavors to increase value by building a safe and sound company with strong asset growth, increasing core earnings and growing returns on equity."
Mackinac Financial Corporation is a registered bank holding company formed under the Bank Holding Company Act of 1956 with assets in excess of $580 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 11 branch locations; seven in the Upper Peninsula, three in the Northern Lower Peninsula and one in Oakland County, Michigan. 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," 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) | March 31, 2014 | December 31, 2013 | March 31, 2013 | ||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||
| Selected Financial Condition Data (at end of period): | |||||||||||||
| Assets | $ | 583,592 | $ | 572,800 | $ | 541,896 | |||||||
| Loans | 485,862 | 483,832 | 454,051 | ||||||||||
| Investment securities | 47,411 | 44,388 | 48,556 | ||||||||||
| Deposits | 475,710 | 466,299 | 425,236 | ||||||||||
| Borrowings | 38,852 | 37,852 | 40,925 | ||||||||||
| Common Shareholders' Equity | 65,730 | 65,249 | 62,039 | ||||||||||
| Shareholders' equity | 65,730 | 65,249 | 73,039 | ||||||||||
| Selected Statements of Income Data: | |||||||||||||
| Net interest income | $ | 5,593 | $ | 21,399 | $ | 5,156 | |||||||
| Income before taxes and preferred dividend | 994 | 5,534 | 1,228 | ||||||||||
| Net income | 660 | 5,629 | 676 | ||||||||||
| Income per common share - Basic | .12 | 1.01 | .12 | ||||||||||
| Income per common share - Diluted | .12 | 1.00 | .12 | ||||||||||
| Weighted average shares outstanding | 5,530,908 | 5,558,313 | 5,559,859 | ||||||||||
| Weighted average shares outstanding- Diluted | 5,549,730 | 5,650,058 | 5,559,859 | ||||||||||
| Selected Financial Ratios and Other Data: | |||||||||||||
| Performance Ratios: | |||||||||||||
| Net interest margin | 4.25 | % | 4.17 | % | 4.18 | % | |||||||
| Efficiency ratio | 80.57 | 67.46 | 72.65 | ||||||||||
| Return on average assets | .46 | 1.01 | .51 | ||||||||||
| Return on average common equity | 4.09 | 9.07 | 4.47 | ||||||||||
| Return on average equity | 4.09 | 8.26 | 3.79 | ||||||||||
| Average total assets | $ | 580,717 | $ | 555,152 | $ | 541,279 | |||||||
| Average common shareholders' equity | 65,462 | 62,082 | 61,238 | ||||||||||
| Average total shareholders' equity | 65,462 | 68,172 | 72,238 | ||||||||||
| Average loans to average deposits ratio | 102.62 | % | 103.46 | % | 104.63 | % | |||||||
| Common Share Data at end of period: | |||||||||||||
| Market price per common share | $ | 12.54 | $ | 9.90 | $ | 9.21 | |||||||
| Book value per common share | $ | 11.89 | 11.77 | $ | 11.16 | ||||||||
| Dividends paid per share, annualized | $ | .20 | .20 | $ | .16 | ||||||||
| Common shares outstanding | 5,527,690 | 5,541,390 | 5,557,859 | ||||||||||
| Other Data at end of period: | |||||||||||||
| Allowance for loan losses | $ | 4,883 | $ | 4,661 | $ | 5,037 | |||||||
| Non-performing assets | $ | 3,657 | $ | 3,908 | $ | 7,658 | |||||||
| Allowance for loan losses to total loans | 1.01 | % | .96 | % | 1.11 | % | |||||||
| Non-performing assets to total assets | .63 | % | .68 | % | 1.41 | % | |||||||
| Texas ratio | 5.18 | % | 5.59 | % | 9.90 | % | |||||||
| Number of: | |||||||||||||
| Branch locations | 11 | 11 | 11 | ||||||||||
| FTE Employees | 133 | 133 | 126 | ||||||||||
| MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||
| 2014 | 2013 | 2013 | |||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
| ASSETS | |||||||||||||||
| Cash and due from banks | $ | 24,748 | $ | 18,216 | $ | 12,598 | |||||||||
| Federal funds sold | 3 | 3 | 3 | ||||||||||||
| Cash and cash equivalents | 24,751 | 18,219 | 12,601 | ||||||||||||
| Interest-bearing deposits in other financial institutions | 10 | 10 | 10 | ||||||||||||
| Securities available for sale | 47,411 | 44,388 | 48,556 | ||||||||||||
| Federal Home Loan Bank stock | 3,060 | 3,060 | 3,060 | ||||||||||||
| Loans: | |||||||||||||||
| Commercial | 361,299 | 359,368 | 345,032 | ||||||||||||
| Mortgage | 110,759 | 110,663 | 97,216 | ||||||||||||
| Consumer | 13,804 | 13,801 | 11,803 | ||||||||||||
| Total Loans | 485,862 | 483,832 | 454,051 | ||||||||||||
| Allowance for loan losses | (4,883 | ) | (4,661 | ) | (5,037 | ) | |||||||||
| Net loans | 480,979 | 479,171 | 449,014 | ||||||||||||
| Premises and equipment | 9,800 | 10,210 | 10,587 | ||||||||||||
| Other real estate held for sale | 2,166 | 1,884 | 3,825 | ||||||||||||
| Deferred tax asset | 9,533 | 9,933 | 8,726 | ||||||||||||
| Other assets | 5,882 | 5,925 | 5,517 | ||||||||||||
| TOTAL ASSETS | $ | 583,592 | $ | 572,800 | $ | 541,896 | |||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||
| LIABILITIES: | |||||||||||||||
| Deposits: | |||||||||||||||
| Noninterest bearing deposits | $ | 68,027 | $ | 72,936 | $ | 57,547 | |||||||||
| NOW, money market, interest checking | 148,023 | 149,123 | 161,445 | ||||||||||||
| Savings | 14,425 | 13,039 | 13,273 | ||||||||||||
| CDs < $100,000 | 154,371 | 140,495 | 130,646 | ||||||||||||
| CDs > $100,000 | 23,317 | 23,159 | 24,619 | ||||||||||||
| Brokered | 67,547 | 67,547 | 37,706 | ||||||||||||
| Total deposits | 475,710 | 466,299 | 425,236 | ||||||||||||
| Borrowings: | |||||||||||||||
| Fed funds purchased | - | - | 5,000 | ||||||||||||
| FHLB and other | 38,852 | 37,852 | 35,925 | ||||||||||||
| Total borrowings | 38,852 | 37,852 | 40,925 | ||||||||||||
| Other liabilities | 3,300 | 3,400 | 2,696 | ||||||||||||
| Total liabilities | 517,862 | 507,551 | 468,857 | ||||||||||||
| SHAREHOLDERS' EQUITY: | |||||||||||||||
| Preferred stock - No par value: | |||||||||||||||
| Authorized 500,000 shares, Issued and outstanding - 11,000 shares | - | - | 11,000 | ||||||||||||
| Common stock and additional paid in capital - No par value | |||||||||||||||
| Authorized - 18,000,000 shares | |||||||||||||||
| Issued and outstanding - 5,527,690; 5,541,390; and 5,557,859 shares respectively | 53,590 | 53,621 | 53,888 | ||||||||||||
| Retained earnings | 11,796 | 11,412 | 7,181 | ||||||||||||
| Accumulated other comprehensive income | 344 | 216 | 970 | ||||||||||||
| Total shareholders' equity | 65,730 | 65,249 | 73,039 | ||||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 583,592 | $ | 572,800 | $ | 541,896 | |||||||||
| MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2014 | 2013 | |||||||
| (Unaudited) | ||||||||
| INTEREST INCOME: | ||||||||
| Interest and fees on loans: | ||||||||
| Taxable | $ | 6,281 | $ | 5,889 | ||||
| Tax-exempt | 23 | 27 | ||||||
| Interest on securities: | ||||||||
| Taxable | 237 | 240 | ||||||
| Tax-exempt | 13 | 7 | ||||||
| Other interest income | 48 | 31 | ||||||
| Total interest income | 6,602 | 6,194 | ||||||
| INTEREST EXPENSE: | ||||||||
| Deposits | 822 | 877 | ||||||
| Borrowings | 187 | 161 | ||||||
| Total interest expense | 1,009 | 1,038 | ||||||
| Net interest income | 5,593 | 5,156 | ||||||
| Provision for loan losses | 183 | 375 | ||||||
| Net interest income after provision for loan losses | 5,410 | 4,781 | ||||||
| OTHER INCOME: | ||||||||
| Deposit service fees | 157 | 162 | ||||||
| Income from secondary market loans sold | 103 | 299 | ||||||
| SBA/USDA loan sale gains | 382 | 109 | ||||||
| Mortgage servicing income | 13 | 103 | ||||||
| Other | 36 | 85 | ||||||
| Total other income | 691 | 758 | ||||||
| OTHER EXPENSE: | ||||||||
| Salaries and employee benefits | 2,541 | 2,306 | ||||||
| Occupancy | 538 | 382 | ||||||
| Furniture and equipment | 319 | 270 | ||||||
| Data processing | 286 | 265 | ||||||
| Advertising | 107 | 104 | ||||||
| Professional service fees | 331 | 225 | ||||||
| Loan and deposit | 79 | 73 | ||||||
| Writedowns and losses on other real estate held for sale | - | 2 | ||||||
| FDIC insurance assessment | 85 | 105 | ||||||
| Telephone | 82 | 82 | ||||||
| Other | 739 | 497 | ||||||
| Total other expenses | 5,107 | 4,311 | ||||||
| Income before provision for income taxes | 994 | 1,228 | ||||||
| Provision for income taxes | 334 | 415 | ||||||
| NET INCOME | 660 | 813 | ||||||
| Preferred dividend and accretion of discount | - | 137 | ||||||
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ | 660 | $ | 676 | ||||
| INCOME PER COMMON SHARE: | ||||||||
| Basic | $ | .12 | $ | .12 | ||||
| Diluted | $ | .12 | $ | .12 | ||||
| MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||
| LOAN PORTFOLIO AND CREDIT QUALITY | ||||||||||
| (Dollars in thousands) | ||||||||||
| Loan Portfolio Balances (at end of period): | ||||||||||
| March 31, | December 31, | March 31, | ||||||||
| 2014 | 2013 | 2013 | ||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||
| Commercial Loans: | ||||||||||
| Real estate - operators of nonresidential buildings | $ | 97,153 | $ | 100,333 | $ | 94,828 | ||||
| Hospitality and tourism | 44,243 | 45,360 | 42,733 | |||||||
| Lessors of residential buildings | 13,649 | 14,191 | 13,162 | |||||||
| Gasoline stations and convenience stores | 11,980 | 11,534 | 11,201 | |||||||
| Commercial construction | 10,685 | 10,904 | 16,295 | |||||||
| Insurance agencies and brokerages | 10,331 | 10,097 | 11,854 | |||||||
| Other | 173,258 | 166,949 | 154,959 | |||||||
| Total Commercial Loans | 361,299 | 359,368 | 345,032 | |||||||
| 1-4 family residential real estate | 104,376 | 103,768 | 89,629 | |||||||
| Consumer | 13,804 | 13,801 | 11,803 | |||||||
| Consumer construction | 6,383 | 6,895 | 7,587 | |||||||
| Total Loans | $ | 485,862 | $ | 483,832 | $ | 454,051 | ||||
| Credit Quality (at end of period): | |||||||||||||
| March 31, | December 31, | March 31, | |||||||||||
| 2014 | 2013 | 2013 | |||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||
| Nonperforming Assets : | |||||||||||||
| Nonaccrual loans | $ | 983 | $ | 1,410 | $ | 3,833 | |||||||
| Loans past due 90 days or more | - | - | - | ||||||||||
| Restructured loans | 508 | 614 | - | ||||||||||
| Total nonperforming loans | 1,491 | 2,024 | 3,833 | ||||||||||
| Other real estate owned | 2,166 | 1,884 | 3,825 | ||||||||||
| Total nonperforming assets | $ | 3,657 | $ | 3,908 | $ | 7,658 | |||||||
| Nonperforming loans as a % of loans | .31 | % | .42 | % | .84 | % | |||||||
| Nonperforming assets as a % of assets | .63 | % | .68 | % | 1.41 | % | |||||||
| Reserve for Loan Losses: | |||||||||||||
| At period end | $ | 4,883 | $ | 4,661 | $ | 5,037 | |||||||
| As a % of average loans | 1.00 | % | 1.01 | % | 1.12 | % | |||||||
| As a % of nonperforming loans | 327.50 | % | 230.29 | % | 131.41 | % | |||||||
| As a % of nonaccrual loans | 496.74 | % | 330.57 | % | 131.41 | % | |||||||
| Texas Ratio | 5.18 | % | 5.59 | % | 9.90 | % | |||||||
| Charge-off Information (year to date): | |||||||||||||
| Average loans | $ | 486,354 | $ | 462,500 | $ | 449,065 | |||||||
| Net charge-offs (recoveries) | $ | (40 | ) | $ | 2,232 | $ | 364 | ||||||
| Charge-offs as a % of average loans, annualized | N/M | % | .48 | % | .32 | % | |||||||
| MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
| QUARTERLY FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
| QUARTER ENDED | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| March 31, | December | September | June 30, | March 31, | ||||||||||||||||
| 2014 | 31, 2013 | 30, 2013 | 2013 | 2013 | ||||||||||||||||
| BALANCE SHEET (Dollars in thousands) | ||||||||||||||||||||
| Total loans | $ | 485,862 | $ | 483,832 | $ | 472,495 | $ | 455,555 | $ | 454,051 | ||||||||||
| Allowance for loan losses | (4,883 | ) | (4,661 | ) | (4,959 | ) | (5,177 | ) | (5,037 | ) | ||||||||||
| Total loans, net | 480,979 | 479,171 | 467,536 | 450,378 | 449,014 | |||||||||||||||
| Total assets | 583,592 | 572,800 | 567,917 | 553,501 | 541,896 | |||||||||||||||
| Core deposits | 384,846 | 375,593 | 375,166 | 357,935 | 362,911 | |||||||||||||||
| Noncore deposits | 90,864 | 90,706 | 86,522 | 89,972 | 62,325 | |||||||||||||||
| Total deposits | 475,710 | 466,299 | 461,688 | 447,907 | 425,236 | |||||||||||||||
| Total borrowings | 38,852 | 37,852 | 35,852 | 35,925 | 40,925 | |||||||||||||||
| Common shareholders' equity | 65,730 | 65,249 | 63,045 | 62,520 | 62,039 | |||||||||||||||
| Total shareholders' equity | 65,730 | 65,249 | 67,045 | 66,520 | 73,039 | |||||||||||||||
| Total shares outstanding | 5,527,690 | 5,541,390 | 5,581,339 | 5,554,459 | 5,557,859 | |||||||||||||||
| Weighted average shares outstanding | 5,530,908 | 5,555,952 | 5,562,835 | 5,556,133 | 5,559,859 | |||||||||||||||
| AVERAGE BALANCES (Dollars in thousands) | ||||||||||||||||||||
| Assets | $ | 580,717 | $ | 569,443 | $ | 560,089 | $ | 548,455 | $ | 541,279 | ||||||||||
| Loans | 486,354 | 479,321 | 464,324 | 456,937 | 449,065 | |||||||||||||||
| Deposits | 473,951 | 461,630 | 456,191 | 439,780 | 429,174 | |||||||||||||||
| Common Equity | 65,462 | 62,950 | 62,134 | 62,483 | 61,238 | |||||||||||||||
| Equity | 65,462 | 66,906 | 66,134 | 67,483 | 72,238 | |||||||||||||||
| INCOME STATEMENT (Dollars in thousands) | ||||||||||||||||||||
| Net interest income | $ | 5,593 | $ | 5,626 | $ | 5,348 | $ | 5,269 | $ | 5,156 | ||||||||||
| Provision for loan losses | 183 | 825 | 375 | 100 | 375 | |||||||||||||||
| Net interest income after provision | 5,410 | 4,801 | 4,973 | 5,169 | 4,781 | |||||||||||||||
| Total noninterest income | 691 | 1,191 | 738 | 1,251 | 758 | |||||||||||||||
| Total noninterest expense | 5,107 | 4,935 | 4,359 | 4,523 | 4,311 | |||||||||||||||
| Income before taxes | 994 | 1,057 | 1,352 | 1,897 | 1,228 | |||||||||||||||
| Provision for income taxes | 334 | (1,911 | ) | 456 | 637 | 415 | ||||||||||||||
| Net income | 660 | 2,968 | 896 | 1,260 | 813 | |||||||||||||||
| Preferred dividend expense | - | 58 | 50 | 63 | 137 | |||||||||||||||
| Net income available to common shareholders | $ | 660 | $ | 2,910 | $ | 846 | $ | 1,197 | $ | 676 | ||||||||||
| PER SHARE DATA | ||||||||||||||||||||
| Earnings | $ | .12 | $ | .52 | $ | .15 | $ | .22 | $ | .12 | ||||||||||
| Book value per common share | 11.89 | 11.77 | 11.30 | 11.26 | 11.16 | |||||||||||||||
| Market value, closing price | 12.54 | 9.90 | 9.10 | 8.88 | 9.21 | |||||||||||||||
| ASSET QUALITY RATIOS | ||||||||||||||||||||
| Nonperforming loans/total loans | .31 | % | .42 | % | .91 | % | .87 | % | .84 | % | ||||||||||
| Nonperforming assets/total assets | .63 | .68 | 1.21 | 1.17 | 1.41 | |||||||||||||||
| Allowance for loan losses/total loans | 1.01 | .96 | 1.09 | 1.14 | 1.11 | |||||||||||||||
| Allowance for loan losses/nonperforming loans | 327.50 | 230.29 | 114.98 | 129.98 | 131.41 | |||||||||||||||
| Texas ratio (1) | 5.18 | 5.59 | 9.56 | 9.02 | 9.81 | |||||||||||||||
| PROFITABILITY RATIOS | ||||||||||||||||||||
| Return on average assets | .46 | % | 2.03 | % | .60 | % | .88 | % | .51 | % | ||||||||||
| Return on average common equity | 4.09 | 18.34 | 5.40 | 7.69 | 4.47 | |||||||||||||||
| Return on average equity | 4.09 | 17.26 | 5.08 | 7.12 | 3.79 | |||||||||||||||
| Net interest margin | 4.25 | 4.24 | 4.12 | 4.16 | 4.18 | |||||||||||||||
| Efficiency ratio | 80.57 | 66.94 | 70.64 | 68.02 | 72.65 | |||||||||||||||
| Average loans/average deposits | 102.62 | 103.83 | 101.78 | 103.90 | 104.63 | |||||||||||||||
| CAPITAL ADEQUACY RATIOS | ||||||||||||||||||||
| Tier 1 leverage ratio | 10.25 | % | 10.31 | % | 10.90 | % | 11.01 | % | 12.23 | % | ||||||||||
| Tier 1 capital to risk weighted assets | 11.79 | 11.83 | 12.45 | 12.74 | 13.98 | |||||||||||||||
| Total capital to risk weighted assets | 12.79 | 12.79 | 13.47 | 13.85 | 15.06 | |||||||||||||||
| Average equity/average assets (for the quarter) | 11.27 | 11.75 | 11.81 | 12.30 | 13.35 | |||||||||||||||
| Tangible equity/tangible assets (at quarter end) | 11.26 | 11.75 | 11.81 | 12.30 | 13.35 | |||||||||||||||
(1)Texas ratio equals nonperforming assets divided by shareholders' equity plus allowance for loan losses
Contact Information:
Contact:
Ernie R. Krueger
(906)341-7158
Website: www.bankmbank.com