MANISTIQUE, MI--(Marketwired - Nov 3, 2016) - Mackinac Financial Corporation (
Operating results for the first nine months of 2016, including transaction related expenses from both Niagara and Eagle River, totaled $2.785 million or $.45 per share compared to $4.003 million or $.64 per share for the same period in 2015. Year-to-date transaction related expenses, largely associated with the early termination of the Eagle River data processing system, totaled $2.928 million with an after-tax impact of $1.932 million on earnings equating to $.31 per share. Adjusted net income for the first nine months of 2016 for the Corporation is $4.718 million, or $.76 per share.
Total assets of the Corporation at September 30, 2016 were $959.121 million, compared to $754.972 million at September 30, 2015. Shareholders' equity at September 30, 2016 totaled $78.285 million, compared to $76.091 million on September 30, 2015. The book value per share equated to $12.50 on September 30, 2016 compared to $12.18 per share a year ago. Quarter-end tangible book value was $11.23 per and share and market price was $11.49, or 102% of tangible book value. Weighted average shares outstanding totaled 6,226,371 for the first nine months of 2016 compared to 6,247,416 for the same period in 2015.
mBank, the Corporation's subsidiary bank, recorded nine-month adjusted net income of $5.611 million compared to $5.003 million in 2015. Inclusive of $2.512 million of transaction related expenses at the bank ($1.658 million after tax), net income was $3.953 million for the first nine months of 2016.
Key highlights for the first nine months of 2016 results include:
- The 2016 acquisitions of Niagara and Eagle River added approximately $194 million in assets, $115 million in loan balances and $163 million in core deposits to the Corporation. Since September 30, 2014 (which is inclusive of the Peninsula Financial Corporation acquisition in December 2014 and organic growth) the company has grown assets approximately $345 million from $613.943 million to the current $959.121 million, an increase of 56%.
- Healthy new loan production of $206.8 million through September 2016 compared to $175.4 million through September 2015.
- Total interest income of $27.398 million through September 2016 compared to $25.117 million for the same period in 2015.
- Margin remains solid, at 4.21% through disciplined pricing of loan and deposit products. Net interest income increased from $21.755 million in 2015 to $23.980 million in 2016, a 10% increase.
- Credit quality remains strong with a Texas Ratio of 10.55% compared to 13.41% one year ago, and nonperforming assets of $7.938 million, or .83% of total assets, compared with $10.324 million, or 1.37% of total assets, for the same period in 2015.
- Increased contribution from secondary mortgage market activity. Income from this source in the 2016 nine-month period totaled $1.118 million compared to $.750 million in the 2015 nine-month period.
- Gains on sold SBA (Small Business Administration) loan premiums through September 2016 was $.717 million compared to $.440 million for the same period of 2015.
Loans and Nonperforming Assets
Total loans at September 30, 2016 were $756.804 million, a $136.898 million increase from $619.906 million at September 30, 2015. The Corporation is up $138.410 million, or 22.3%, from year-end 2015 total loans of $618.394 million. In addition to the aforementioned balance sheet totals, the company services $233.356 million of sold mortgage loans and $43.160 million of sold SBA and USDA loans. Total loans under management now total $1.033 billion.
New loan production totaled $206.777 million with the Upper Peninsula region contributing $127.880 million, the Northern Lower Peninsula $38.479 million, Southeast Michigan $34.099 million and the newly acquired Wisconsin markets $6.319 million. Commercial loan production accounted for $114.842 million of the nine month total, with consumer loans, primarily 1-4 family mortgages, of $91.935 million. Commenting on new loan production and overall lending activities, Kelly W. George, President and CEO of mBank, stated, "We are very pleased with the new loan opportunities and production in all our markets which is up over $31 million from the prior year. Our net loan balances did not quite increase commensurate with production as we experienced some loan portfolio runoff early in the year due, in part, to customers shopping rates that we would not match. The strategic acquisitions of both Eagle River and Niagara have, however, provided loan balance growth and scale as expected. We have a healthy loan pipeline for the remainder of the year for both commercial and mortgage business. As noted in our totals, we are also excited about the momentum in our newly acquired markets in Wisconsin and the new loan generation potential they carry."
Nonperforming loans totaled $4.669 million, .62% of total loans at September 30, 2016, down $3.359 million from September 30, 2015 balances of $8.028 million. Total loan delinquencies greater than 30 days resided at a nominal .65%, or $4.975 million. Mr. George, commenting on credit quality, stated, "Our credit quality risk metrics and overall loan portfolio payment performance remains strong with no systemic issues within any segments of the portfolio. The pick-up in retail segment loans from our two acquisitions this year has also provided increased granularity and better overall diversity for the entire loan portfolio on a macro level. Our credit due diligence and purchase accounting marks on the acquired loan portfolios of Eagle River and Niagara have proven accurate as well, and they are providing accretion at anticipated levels post-closing."
Margin Analysis
In the first nine months of 2016 net interest income and net interest margin were $23.980 million and 4.21%, and $21.755 million and 4.29%, in the first nine months of 2015. The increase in net interest income was largely due to the Niagara and Eagle River acquisitions. The Corporation also had increased net interest contribution due to the accretive attributes associated with the purchase accounting adjustments related to the three acquisitions completed in the past two years. Mr. George stated, "We have been successful in maintaining our strong net interest margin within this historically low interest rate cycle through the use of continued targeted funding strategies and disciplined loan pricing in efforts to mitigate longer term interest rate risk. We continue to look for any loan and investment opportunities that fit our balance sheet structure but will not take unnecessary risk or extend durations in order to enhance short term yields. While we acquired some excess liquidity through the acquisitions and experienced summer seasonal increases in our deposit portfolio, we have been able to normalize the cash position and put those dollars to work funding good loan opportunities. Further, we remain predominantly asset sensitive within our balance sheet structure and expect that upward movements of short term interest rates will be beneficial for future earnings."
Deposits
Total deposits of $807.180 million at September 30, 2016 increased by $184.846 million (including approximately $163 million from the Niagara and Eagle River acquisitions) from deposits of $622.334 million on September 30, 2015 and increased $196.857 million from year end deposits of $610.323 million. Mr. George, commenting on core deposits and overall liquidity, stated. "We proactively review our short and long term funding needs and pricing levels within the different segments of our deposit products in order to best manage our net interest margin while still offering competitive products to our clientele. We will also utilize alternative funding sources such as internet CDs and smaller 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 to protect our balance sheet in various interest rate change scenarios. Through the acquisitions, we have augmented our core deposit base to where our utilization of non-core sources has decreased as a percent of our total assets."
Noninterest Income/Expense
Noninterest income, at $3.012 million in the first nine months of 2016, increased $.265 million from $2.747 million in the first nine months of 2015. The primary reason for the improvement was increased year over year activity in the secondary mortgage market as well as SBA gains. Income from sold secondary mortgages totaled $1.118 million compared to $.750 million in the 2015 nine-month period while SBA gains were $.717 million compared to $.440 million in 2015. Noninterest expense, at $22.376 million in the first nine months of 2015, increased $4.806 million from the first nine months of 2015. The 2016 increase from the first nine months of 2015 was largely attributable to the acquisition costs including the aforementioned termination fee. There were also customary increases in salaries and benefits for new staff, along with increased occupancy expense due to the acquired branch offices. Consistent with management's operating diligence projections prior to both acquisitions, the Corporation has reached the attained levels of overall efficiencies as management looks to grow market presence heading into 2017. Management remains diligent in monitoring and controlling the Corporation's overall expense base, which continues to reside at or below peer levels.
Assets and Capital
Total assets of the Corporation at September 30, 2016 were $959.121 million, up $204.149 million from the $754.972 million reported at September 30, 2015, with approximately $194 million attributable to the acquisitions in 2016, and up from the $739.269 million of total assets at year-end 2015. The Corporation is "adequately" capitalized and the Bank is "well-capitalized" with Total Capital to Risk Weighted Assets at the Corporation of 8.81% and 11.61% at the Bank.
Paul D. Tobias, Chairman and Chief Executive Officer of the Corporation, added, "Overall, we are pleased with the execution of our plan through the first three quarters of 2016. Even with a very competitive market for good loans and the stagnant interest rate environment, we have continued to add accretive scale. Our entry into the Wisconsin markets provides a larger platform for continued organic growth and adds complementary markets to our Upper Peninsula footprint. We have maintained our key core operating metrics and have positioned the company in a way that will allow us to take advantage of any future strategic opportunities that present themselves. We are looking forward to a solid finish to the year now that the integration of both Niagara and Eagle River is complete."
Mackinac Financial Corporation is a registered bank holding company formed under the Bank Holding Company Act of 1956 with assets in excess of $950 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 23 branch locations; twelve in the Upper Peninsula, three in the Northern Lower Peninsula, in Oakland County, Michigan and seven 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," 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, 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 | ||||||||||||
| As of and For the | As of and For the | As of and For the | ||||||||||
| Period Ending | Year Ending | Period Ending | ||||||||||
| September 30, | December 31, | September 30, | ||||||||||
| (Dollars in thousands, except per share data) | 2016 | 2015 | 2015 | |||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| Selected Financial Condition Data (at end of period): | ||||||||||||
| Assets | $ | 959,121 | $ | 739,269 | $ | 754,972 | ||||||
| Loans | 756,804 | 618,394 | 619,906 | |||||||||
| Investment securities | 88,886 | 53,728 | 54,432 | |||||||||
| Deposits | 807,180 | 610,323 | 622,334 | |||||||||
| Borrowings | 67,730 | 45,754 | 49,593 | |||||||||
| Shareholders' equity | 78,285 | 76,602 | 76,091 | |||||||||
| Selected Statements of Income Data nine months and year ended): | ||||||||||||
| Net interest income | $ | 23,980 | $ | 29,120 | $ | 21,755 | ||||||
| Income before taxes | 4,266 | 7,929 | 6,077 | |||||||||
| Net income | 2,785 | 5,596 | 4,003 | |||||||||
| Income per common share - Basic | .45 | .90 | .64 | |||||||||
| Income per common share - Diluted | .45 | .89 | .64 | |||||||||
| Weighted average shares outstanding | 6,226,900 | 6,247,416 | 6,247,416 | |||||||||
| Weighted average shares outstanding- Diluted | 6,255,803 | 6,278,817 | 6,278,817 | |||||||||
| Three Months Ended: | ||||||||||||
| Net interest income | $ | 8,696 | $ | 7,365 | $ | 7,235 | ||||||
| Income before taxes | 2,700 | 1,852 | 1,544 | |||||||||
| Net income | 1,778 | 1,593 | 1,018 | |||||||||
| Income per common share - Basic | .29 | .26 | .16 | |||||||||
| Income per common share - Diluted | .28 | .26 | .16 | |||||||||
| Weighted average shares outstanding | 6,238,756 | 6,225,614 | 6,238,963 | |||||||||
| Weighted average shares outstanding- Diluted | 6,284,359 | 6,257,180 | 6,278,009 | |||||||||
| Selected Financial Ratios and Other Data: | ||||||||||||
| Performance Ratios: | ||||||||||||
| Net interest margin | 4.21 | % | 4.30 | % | 4.29 | % | ||||||
| Return on average assets | .45 | .76 | .72 | |||||||||
| Return on average equity | 4.75 | 7.41 | 7.09 | |||||||||
| Average total assets | $ | 834,378 | $ | 738,688 | $ | 740,593 | ||||||
| Average total shareholders' equity | 78,264 | 75,545 | 75,436 | |||||||||
| Average loans to average deposits ratio | 98.84 | % | 100.52 | % | 100.08 | % | ||||||
| Common Share Data at end of period: | ||||||||||||
| Market price per common share | $ | 11.49 | $ | 11.49 | $ | 10.10 | ||||||
| Book value per common share | 12.50 | 12.32 | 12.18 | |||||||||
| Tangible book value per share | 11.23 | 11.54 | 11.39 | |||||||||
| Dividends paid per share, annualized | .400 | .400 | .400 | |||||||||
| Common shares outstanding | 6,263,371 | 6,217,620 | 6,249,595 | |||||||||
| Other Data at end of period: | ||||||||||||
| Allowance for loan losses | $ | 4,862 | $ | 5,004 | $ | 5,779 | ||||||
| Non-performing assets | $ | 7,938 | $ | 4,863 | $ | 10,324 | ||||||
| Allowance for loan losses to total loans | .64 | % | .81 | % | .93 | % | ||||||
| Non-performing assets to total assets | .83 | % | .66 | % | 1.37 | % | ||||||
| Texas ratio | 10.55 | % | 6.34 | % | 13.41 | % | ||||||
| Number of: | ||||||||||||
| Branch locations | 23 | 17 | 17 | |||||||||
| FTE Employees | 218 | 173 | 173 | |||||||||
| MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||||
| September 30 | December 31, | September 30 | ||||||||||||
| 2016 | 2015 | 2015 | ||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||
| ASSETS | ||||||||||||||
| Cash and due from banks | $ | 46,200 | $ | 25,005 | $ | 28,581 | ||||||||
| Federal funds sold | 2,415 | 3 | 10,000 | |||||||||||
| Cash and cash equivalents | 48,615 | 25,008 | 38,581 | |||||||||||
| Interest-bearing deposits in other financial institutions | 14,047 | 5,089 | 5,089 | |||||||||||
| Securities available for sale | 88,886 | 53,728 | 54,432 | |||||||||||
| Federal Home Loan Bank stock | 2,926 | 2,169 | 2,169 | |||||||||||
| Loans: | ||||||||||||||
| Commercial | 513,266 | 450,275 | 446,327 | |||||||||||
| Mortgage | 222,840 | 152,272 | 156,764 | |||||||||||
| Consumer | 20,698 | 15,847 | 16,815 | |||||||||||
| Total Loans | 756,804 | 618,394 | 619,906 | |||||||||||
| Allowance for loan losses | (4,862 | ) | (5,004 | ) | (5,779 | ) | ||||||||
| Net loans | 751,942 | 613,390 | 614,127 | |||||||||||
| Premises and equipment | 16,028 | 12,524 | 12,670 | |||||||||||
| Other real estate held for sale | 3,269 | 2,324 | 2,296 | |||||||||||
| Deferred tax asset | 9,287 | 9,213 | 9,326 | |||||||||||
| Deposit based intangibles | 2,235 | 1,076 | 1,106 | |||||||||||
| Goodwill | 5,694 | 3,805 | 3,805 | |||||||||||
| Other assets | 16,192 | 10,943 | 11,371 | |||||||||||
| TOTAL ASSETS | $ | 959,121 | $ | 739,269 | $ | 754,972 | ||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
| LIABILITIES: | ||||||||||||||
| Deposits: | ||||||||||||||
| Noninterest bearing deposits | $ | 163,278 | $ | 122,775 | $ | 114,769 | ||||||||
| NOW, money market, interest checking | 287,097 | 202,784 | 213,737 | |||||||||||
| Savings | 60,322 | 30,882 | 31,742 | |||||||||||
| CDs < $250,000 | 150,170 | 124,084 | 129,715 | |||||||||||
| CDs > $250,000 | 9,015 | 8,532 | 27,272 | |||||||||||
| Brokered | 137,298 | 121,266 | 105,099 | |||||||||||
| Total deposits | 807,180 | 610,323 | 622,334 | |||||||||||
| Borrowings | 67,730 | 45,754 | - | |||||||||||
| Fed funds purchased | - | - | 49,593 | |||||||||||
| Other liabilities | 5,926 | 6,590 | 6,954 | |||||||||||
| Total liabilities | 880,836 | 662,667 | 678,881 | |||||||||||
| 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 | 61,433 | 61,133 | 61,320 | |||||||||||
| Retained earnings | 16,115 | 15,221 | 14,229 | |||||||||||
| Accumulated other comprehensive income | ||||||||||||||
| Unrealized gains on available for sale securities | 786 | 297 | 591 | |||||||||||
| Minimum pension liability | (49 | ) | (49 | ) | (49 | ) | ||||||||
| Total shareholders' equity | 78,285 | 76,602 | 76,091 | |||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 959,121 | $ | 739,269 | $ | 754,972 | ||||||||
| MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
| INTEREST INCOME: | |||||||||||||||
| Interest and fees on loans: | |||||||||||||||
| Taxable | $ | 9,441 | $ | 8,019 | $ | 26,085 | $ | 23,986 | |||||||
| Tax-exempt | 19 | 3 | 34 | 9 | |||||||||||
| Interest on securities: | |||||||||||||||
| Taxable | 387 | 282 | 953 | 845 | |||||||||||
| Tax-exempt | 57 | 35 | 114 | 129 | |||||||||||
| Other interest income | 91 | 46 | 212 | 148 | |||||||||||
| Total interest income | 9,995 | 8,385 | 27,398 | 25,117 | |||||||||||
| INTEREST EXPENSE: | |||||||||||||||
| Deposits | 870 | 843 | 2,410 | 2,467 | |||||||||||
| Borrowings | 429 | 307 | 1,008 | 895 | |||||||||||
| Total interest expense | 1,299 | 1,150 | 3,418 | 3,362 | |||||||||||
| Net interest income | 8,696 | 7,235 | 23,980 | 21,755 | |||||||||||
| Provision for loan losses | 200 | 350 | 350 | 855 | |||||||||||
| Net interest income after provision for loan losses | 8,496 | 6,885 | 23,630 | 20,900 | |||||||||||
| OTHER INCOME: | |||||||||||||||
| Deposit service fees | 259 | 196 | 723 | 624 | |||||||||||
| Income from loans sold on the secondary market | 512 | 301 | 1,118 | 750 | |||||||||||
| SBA/USDA loan sale gains | 551 | 40 | 717 | 440 | |||||||||||
| Mortgage servicing income | (12 | ) | 9 | (74 | ) | 239 | |||||||||
| Net security gains | 40 | 133 | 149 | 402 | |||||||||||
| Other | 139 | 94 | 379 | 292 | |||||||||||
| Total other income | 1,489 | 773 | 3,012 | 2,747 | |||||||||||
| OTHER EXPENSE: | |||||||||||||||
| Salaries and employee benefits | 3,687 | 3,139 | 10,592 | 9,102 | |||||||||||
| Occupancy | 680 | 602 | 1,960 | 1,804 | |||||||||||
| Furniture and equipment | 440 | 370 | 1,248 | 1,159 | |||||||||||
| Data processing | 440 | 327 | 1,118 | 1,041 | |||||||||||
| Advertising | 157 | 153 | 494 | 399 | |||||||||||
| Professional service fees | 309 | 348 | 807 | 928 | |||||||||||
| Loan and deposit | 152 | 136 | 434 | 399 | |||||||||||
| Writedowns and losses on other real estate held for sale | 60 | 104 | 62 | 141 | |||||||||||
| FDIC insurance assessment | 131 | 135 | 356 | 383 | |||||||||||
| Telephone | 140 | 108 | 374 | 346 | |||||||||||
| Transaction related expenses | 359 | - | 2,928 | - | |||||||||||
| Other | 730 | 692 | 2,003 | 1,868 | |||||||||||
| Total other expenses | 7,285 | 6,114 | 22,376 | 17,570 | |||||||||||
| Income before provision for income taxes | 2,700 | 1,544 | 4,266 | 6,077 | |||||||||||
| Provision for income taxes | 922 | 526 | 1,481 | 2,074 | |||||||||||
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | 1,778 | 1,018 | 2,785 | 4,003 | |||||||||||
| INCOME PER COMMON SHARE: | |||||||||||||||
| Basic | $ | .29 | $ | .16 | $ | .45 | $ | .64 | |||||||
| Diluted | $ | .28 | $ | .16 | $ | .45 | $ | .64 | |||||||
| MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||
| LOAN PORTFOLIO AND CREDIT QUALITY | ||||||||||||||
| (Dollars in thousands) | ||||||||||||||
| Loan Portfolio Balances (at end of period): | ||||||||||||||
| September 30, | December 31, | September 30, | ||||||||||||
| 2016 | 2015 | 2015 | ||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||
| Commercial Loans: | ||||||||||||||
| Real estate - operators of nonresidential buildings | $ | 110,252 | $ | 102,620 | $ | 102,897 | ||||||||
| Hospitality and tourism | 53,182 | 41,300 | 41,156 | |||||||||||
| Lessors of residential buildings | 23,939 | 25,930 | 25,911 | |||||||||||
| Gasoline stations and convenience stores | 20,286 | 21,647 | 17,077 | |||||||||||
| Commercial construction | 14,343 | 15,330 | 15,498 | |||||||||||
| Real estate agents and managers | 9,962 | 11,225 | 9,785 | |||||||||||
| Other | 281,302 | 232,223 | 234,003 | |||||||||||
| Total Commercial Loans | 513,266 | 450,275 | 446,327 | |||||||||||
| 1-4 family residential real estate | 211,072 | 140,502 | 144,807 | |||||||||||
| Consumer | 20,698 | 15,847 | 16,815 | |||||||||||
| Consumer construction | 11,768 | 11,770 | 11,957 | |||||||||||
| Total Loans | $ | 756,804 | $ | 618,394 | $ | 619,906 | ||||||||
| Credit Quality (at end of period): | ||||||||||||||
| September 30 | December 31, | September 30 | ||||||||||||
| 2016 | 2015 | 2015 | ||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||
| Nonperforming Assets: | ||||||||||||||
| Nonaccrual loans | $ | 4,498 | $ | 2,353 | $ | 7,226 | ||||||||
| Loans past due 90 days or more | 32 | 32 | - | |||||||||||
| Restructured loans | 139 | 154 | 802 | |||||||||||
| Total nonperforming loans | 4,669 | 2,539 | 8,028 | |||||||||||
| Other real estate owned | 3,269 | 2,324 | 2,296 | |||||||||||
| Total nonperforming assets | $ | 7,938 | $ | 4,863 | $ | 10,324 | ||||||||
| Nonperforming loans as a % of loans | .62 | % | .41 | % | 1.30 | % | ||||||||
| Nonperforming assets as a % of assets | .83 | % | .66 | % | 1.37 | % | ||||||||
| Reserve for Loan Losses: | ||||||||||||||
| At period end | $ | 4,862 | $ | 5,004 | $ | 5,779 | ||||||||
| As a % of average loans | .71 | % | .83 | % | .95 | % | ||||||||
| As a % of nonperforming loans | 104.13 | % | 197.09 | % | 71.99 | % | ||||||||
| As a % of nonaccrual loans | 108.09 | % | 212.66 | % | 79.98 | % | ||||||||
| Texas Ratio | 10.55 | % | 6.34 | % | 13.41 | % | ||||||||
| Charge-off Information (year to date): | ||||||||||||||
| Average loans | $ | 680,027 | $ | 602,904 | $ | 607,284 | ||||||||
| Net charge-offs (recoveries) | $ | 492 | $ | 1,340 | $ | 216 | ||||||||
| Charge-offs as a % of average loans, annualized | .10 | % | .22 | % | .05 | % | ||||||||
| MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
| QUARTERLY FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
| QUARTER ENDED | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| September 30 | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| 2016 | 2016 | 2016 | 2015 | 2015 | ||||||||||||||||
| BALANCE SHEET (Dollars in thousands) | ||||||||||||||||||||
| Total loans | $ | 756,804 | $ | 725,635 | $ | 618,625 | $ | 618,394 | $ | 619,906 | ||||||||||
| Allowance for loan losses | (4,862 | ) | (4,733 | ) | (4,824 | ) | (5,004 | ) | (5,779 | ) | ||||||||||
| Total loans, net | 751,942 | 720,902 | 613,801 | 613,390 | 614,127 | |||||||||||||||
| Total assets | 959,121 | 892,328 | 732,932 | 739,269 | 754,972 | |||||||||||||||
| Core deposits | 660,867 | 579,606 | 473,761 | 480,525 | 509,466 | |||||||||||||||
| Noncore deposits | 146,313 | 158,757 | 119,217 | 129,798 | 112,868 | |||||||||||||||
| Total deposits | 807,180 | 738,363 | 592,978 | 610,323 | 622,334 | |||||||||||||||
| Total borrowings | 67,730 | 70,604 | 56,454 | 45,754 | 49,593 | |||||||||||||||
| Total shareholders' equity | 78,285 | 77,081 | 77,395 | 76,602 | 76,091 | |||||||||||||||
| Total tangible equity | 70,356 | 69,916 | 72,544 | 71,721 | 71,180 | |||||||||||||||
| Total shares outstanding | 6,263,371 | 6,226,246 | 6,231,246 | 6,217,620 | 6,249,595 | |||||||||||||||
| Weighted average shares outstanding | 6,238,756 | 6,227,730 | 6,214,083 | 6,225,614 | 6,247,416 | |||||||||||||||
| AVERAGE BALANCES (Dollars in thousands) | ||||||||||||||||||||
| Assets | $ | 930,353 | $ | 834,674 | $ | 737,088 | $ | 733,035 | $ | 751,153 | ||||||||||
| Loans | 734,702 | 689,462 | 615,684 | 613,846 | 614,315 | |||||||||||||||
| Deposits | 780,265 | 679,183 | 604,363 | 602,857 | 624,528 | |||||||||||||||
| Equity | 78,027 | 79,481 | 77,284 | 75,871 | 76,362 | |||||||||||||||
| INCOME STATEMENT (Dollars in thousands) | ||||||||||||||||||||
| Net interest income | $ | 8,696 | $ | 7,996 | $ | 7,288 | $ | 7,365 | $ | 7,235 | ||||||||||
| Provision for loan losses | 200 | 150 | - | 349 | 350 | |||||||||||||||
| Net interest income after provision | 8,496 | 7,846 | 7,288 | 7,016 | 6,885 | |||||||||||||||
| Total noninterest income | 1,489 | 896 | 627 | 1,142 | 773 | |||||||||||||||
| Total noninterest expense | 7,285 | 8,893 | 6,198 | 6,306 | 6,114 | |||||||||||||||
| Income before taxes | 2,700 | (151 | ) | 1,717 | 1,852 | 1,544 | ||||||||||||||
| Provision for income taxes | 922 | (26 | ) | 585 | 259 | 526 | ||||||||||||||
| Net income available to common shareholders | $ | 1,778 | $ | (125 | ) | $ | 1,132 | $ | 1,593 | $ | 1,018 | |||||||||
| Income pre-tax, pre-provision | $ | 2,900 | $ | (1 | ) | $ | 1,717 | $ | 2,201 | $ | 1,894 | |||||||||
| PER SHARE DATA | ||||||||||||||||||||
| Earnings | $ | .29 | $ | (.02 | ) | $ | .18 | $ | .26 | $ | .16 | |||||||||
| Book value per common share | 12.50 | 12.38 | 12.42 | 12.32 | 12.18 | |||||||||||||||
| Tangible book value per share | 11.23 | 11.23 | 11.64 | 11.54 | 11.39 | |||||||||||||||
| Market value, closing price | 11.49 | 11.01 | 10.25 | 11.49 | 10.10 | |||||||||||||||
| Dividends per share | .100 | .100 | .100 | .100 | .100 | |||||||||||||||
| ASSET QUALITY RATIOS | ||||||||||||||||||||
| Nonperforming loans/total loans | .62 | % | .46 | % | .28 | % | .50 | % | 1.30 | % | ||||||||||
| Nonperforming assets/total assets | .83 | .76 | .60 | .73 | 1.37 | |||||||||||||||
| Allowance for loan losses/total loans | .64 | .65 | .78 | .81 | .93 | |||||||||||||||
| Allowance for loan losses/ nonperforming loans | 104.13 | 142.52 | 280.96 | 197.09 | 71.99 | |||||||||||||||
| Texas ratio (1) | 10.55 | 9.13 | 5.61 | 6.34 | 13.41 | |||||||||||||||
| PROFITABILITY RATIOS | ||||||||||||||||||||
| Return on average assets | .76 | % | (.06 | )% | .62 | % | .86 | % | .54 | % | ||||||||||
| Return on average equity | 9.06 | (.63 | ) | 5.89 | 8.33 | 5.28 | ||||||||||||||
| Net interest margin | 4.18 | 4.19 | 4.33 | 4.34 | 4.18 | |||||||||||||||
| Average loans/average deposits | 94.16 | 101.51 | 101.87 | 101.82 | 98.36 | |||||||||||||||
| CAPITAL ADEQUACY RATIOS | ||||||||||||||||||||
| Tier 1 leverage ratio | 7.29 | % | 7.68 | % | 9.55 | % | 9.81 | % | 9.02 | % | ||||||||||
| Tier 1 capital to risk weighted assets | 8.22 | 8.76 | 10.82 | 10.23 | 10.28 | |||||||||||||||
| Total capital to risk weighted assets | 8.81 | 9.39 | 11.57 | 11.94 | 11.17 | |||||||||||||||
| Average equity/average assets (for the quarter) | 8.39 | 9.52 | 10.49 | 11.19 | 10.19 | |||||||||||||||
| Tangible equity/tangible assets (at quarter end) | 7.40 | 7.90 | 9.96 | 9.77 | 9.49 | |||||||||||||||
Contact Information:
Contact:
Paul D. Tobias
(248) 290-5901
Jesse A. Deering
(248) 290-5906
Website: www.bankmbank.com