MANISTIQUE, MI--(Marketwired - Jul 30, 2014) - Mackinac Financial Corporation (
Weighted average shares totaled 5,529,290 shares for the six month period in 2014 and 5,527,690 shares in the 2014 second quarter compared to 5,557,842 shares for the six month period and 5,556,133 shares in the second quarter of 2013.
The Corporation's subsidiary, mBank, recorded net income of $2.404 million for the first six months of this year compared to $2.538 million for the same period in 2013. The largest adverse variance was noninterest income as it decreased primarily as a result of a reduced level of fees and gains on the sale of loans from secondary market mortgage lending of $.365 million from prior year period given the national mortgage refinance slowdown.
Total assets of the Corporation at June 30, 2014 were $595.869 million, up 7.65% from the $553.501 million reported at June 30, 2013 and up 4.03% from the $572.800 million of total assets at year-end 2013. The Corporation and the Bank are both "well-capitalized" with Tier 1 Capital at both the Corporation and the Bank of 10.50%.
Key highlights for the first six months of 2014 results include:
- Continued strong credit quality with a Texas Ratio of 6.43% compared to 9.02% one year ago, with nonperforming assets of $4.599 million, a $1.865 million reduction from a year earlier.
- Healthy new loan growth, with six-month production of $86 million and balance sheet growth of $19 million.
- Net interest income in the first half of 2014 increased to $11.252 million, 4.21%, compared to $10.425 million, or 4.17%, in the first half of 2013.
- Continued success in SBA/USDA lending with gains on the sale of these loans of $.549 million, compared to $.663 million a year earlier.
- The recent announcement of the pending acquisition of Peninsula Bank, a 127-year old, $132 million asset bank headquartered in the Upper Peninsula with six banking locations in Marquette County.
Loans and Nonperforming Assets
Total loans at June 30, 2014 were $502.940 million, a 10.40% increase from the $455.555 million at June 30, 2013 and up $19.108 million from year-end 2013 total loans of $483.832 million. In addition to the aforementioned balance sheet totals, the company services $138 million of sold mortgage loans and $60 million of sold SBA and USDA loans. Total loans under management now reside at $701 million.
New loan production totaled $85.8 million with the Upper Peninsula contributing $52.3 million, the Northern Lower Peninsula $14.8 million and Southeast Michigan $18.7 million. Commercial loan production accounted for $55.9 million of the six month total, with consumer, primarily 1-4 family mortgages of $29.9 million. Commenting on new loan production and overall lending activities, Kelly W. George, President and CEO of mBank stated, "We were pleased with our overall continued success in new loan production for the first half of 2014 in light of the very harsh and elongated winter in Northern Michigan where the majority of our lending activities reside. The weather stymied business development especially within the retail loan segments. Loan balance growth did accelerate in the second quarter with good activity in all of our markets and lending segments, and our pipeline remains good moving into the remainder of the year."
Nonperforming loans totaled $2.652 million, .53% of total loans at June 30, 2014 compared to $3.983 million, or .87% of total loans at June 30, 2013 and up $.628 million from December 31, 2013. Nonperforming assets were reduced by $1.865 million from a year ago and stood at .77% of total assets and equated to $4.599 million. Total loan delinquencies greater than 30 days resided at a nominal .63% or $3.145 million. George, commenting on credit quality, stated, "Our micro credit risk 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. From a macro perspective, our loan origination mix and concentrations remain well manageable and will improve with the mix and types of loans that will be acquired in the Peninsula Bank acquisition."
Margin Analysis
Net interest income in the first half of 2014 increased to $11.252 million, 4.21%, compared to $10.425 million, or 4.17%, in the first half of 2014. George stated, "The growth of our net interest income and stability of our net interest margin is a direct reflection of our continued pricing discipline for loans and deposits within our various markets. 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 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 $484.016 million at June 30, 2014 increased by 8.06% from deposits of $447.907 million on June 30, 2013 and were up $17.717 million from year-end deposits $466.299 million. The overall increase in deposits for the first six 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 strong liquidity position to fund operations and loan growth, especially as we move through the seasonal quarters where many of our lodging and tourism clients are the busiest. 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 durations, and cover any potential short term funding gaps that could arise."
Noninterest Income/Expense
Noninterest income, at $1.341 million in the first half of 2014, decreased $.668 million from the first half 2013 level of $2.009 million. Noninterest income decreased primarily as a result of a reduced level of fees and gains on the sale of loans from secondary market mortgage lending of $.336 million from prior year period. Noninterest expense, at $10.005 million in the first half of 2014, increased $1.171 million, or 13.26% from the same period in 2013. The largest increase from the first half 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 half 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 June 30, 2014 were $595.869 million, up 7.65% from the $553.501 million reported at June 30, 2013 and up $23.069 million from the $572.800 million of total assets at year-end 2013. The increase in assets during the first half of 2014 was primarily loan growth.
Total common shareholders' equity at June 30, 2014 was $66.477 million, or $12.03 per share, compared to $62.520 million, or $11.26 per share on June 30, 2013, an increase of $3.950 million, or 6.31 %.
Paul D. Tobias, Chairman and Chief Executive Officer, concluded, "We are very excited about our recently announced acquisition of Peninsula State Bank. This marks a milestone for your Corporation as we seek to merge with the second oldest community bank in Michigan. This fine bank is within our largest and growing commerce hub in the Upper Peninsula. We expect this acquisition to be accretive in 2014 and beyond. In addition, our organic growth will be enhanced when our asset based lending subsidiary grows to a level that sustains profitability later this year. This new business is complementary to our commercial lending and to our SBA/USDA efforts. We expect our returns from both of these initiatives to produce positive returns on our investment and add to shareholder value in the near future."
Mackinac Financial Corporation is a registered bank holding company formed under the Bank Holding Company Act of 1956 with assets in excess of $590 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) |
June 30, 2014 |
December 31, 2013 |
June 30, 2013 |
|||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| Selected Financial Condition Data (at end of period): | ||||||||||||
| Assets | $ | 595,869 | $ | 572,800 | $ | 553,501 | ||||||
| Loans | 502,940 | 483,832 | 455,555 | |||||||||
| Investment securities | 47,374 | 44,388 | 47,307 | |||||||||
| Deposits | 484,016 | 466,299 | 447,907 | |||||||||
| Borrowings | 42,087 | 37,852 | 35,925 | |||||||||
| Common Shareholders' Equity | 66,477 | 65,249 | 62,520 | |||||||||
| Shareholders' equity | 66,477 | 65,249 | 66,520 | |||||||||
| Selected Statements of Income Data (six months and year ended): | ||||||||||||
| Net interest income | $ | 11,252 | $ | 21,399 | $ | 10,425 | ||||||
| Income before taxes and preferred dividend | 2,214 | 5,534 | 3,125 | |||||||||
| Net income | 1,466 | 5,629 | 1,873 | |||||||||
| Income per common share - Basic* | .27 | 1.01 | .34 | |||||||||
| Income per common share - Diluted* | .26 | 1.00 | .34 | |||||||||
| Weighted average shares outstanding | 5,529,290 | 5,558,313 | 5,557,842 | |||||||||
| Weighted average shares outstanding- Diluted | 5,623,192 | 5,650,058 | 5,557,842 | |||||||||
| Three Months Ended: | ||||||||||||
| Net interest income | $ | 5,659 | $ | 5,626 | $ | 5,269 | ||||||
| Income before taxes and preferred dividend | 1,220 | 1,057 | 1,897 | |||||||||
| Net income | 806 | 2,910 | 1,197 | |||||||||
| Income per common share - Basic | .15 | .52 | .22 | |||||||||
| Income per common share - Diluted* | .15 | .51 | .22 | |||||||||
| Weighted average shares outstanding* | 5,527,690 | 5,555,952 | 5,556,133 | |||||||||
| Weighted average shares outstanding- Diluted | 5,557,563 | 5,555,952 | 5,556,133 | |||||||||
| Selected Financial Ratios and Other Data: | ||||||||||||
| Performance Ratios: | ||||||||||||
| Net interest margin | 4.21 | % | 4.17 | % | 4.17 | % | ||||||
| Efficiency ratio | 78.95 | 67.46 | 70.22 | |||||||||
| Return on average assets | .51 | 1.01 | .69 | |||||||||
| Return on average common equity | 4.51 | 9.07 | 6.13 | |||||||||
| Return on average equity | 4.51 | 8.26 | 5.41 | |||||||||
| Average total assets | $ | 580,934 | $ | 555,152 | $ | 544,887 | ||||||
| Average common shareholders' equity | 65,508 | 62,082 | 61,590 | |||||||||
| Average total shareholders' equity | 65,508 | 68,172 | 69,847 | |||||||||
| Average loans to average deposits ratio | 103.78 | % | 103.46 | % | 104.26 | % | ||||||
| Common Share Data at end of period: | ||||||||||||
| Market price per common share | $ | 12.90 | $ | 9.90 | $ | 8.88 | ||||||
| Book value per common share | $ | 12.03 | $ | 11.77 | $ | 11.26 | ||||||
| Common shares outstanding | 5,527,690 | 5,541,390 | 5,554,459 | |||||||||
| Other Data at end of period: | ||||||||||||
| Allowance for loan losses | $ | 5,097 | $ | 4,661 | $ | 5,177 | ||||||
| Non-performing assets | $ | 4,599 | $ | 3,908 | $ | 6,464 | ||||||
| Allowance for loan losses to total loans | 1.01 | % | .96 | % | 1.14 | % | ||||||
| Non-performing assets to total assets | .77 | % | .68 | % | 1.17 | % | ||||||
| Texas ratio | 6.43 | % | 5.59 | % | 9.02 | % | ||||||
| Number of: | ||||||||||||
| Branch locations | 11 | 11 | 11 | |||||||||
| FTE Employees | 134 | 133 | 128 | |||||||||
| *Earnings per share data for 2012 restated for common stock issuance | ||||||||||||
| MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||||||
| June 30, | December 31, | June 30, | |||||||||||||
| 2014 | 2013 | 2013 | |||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
| ASSETS | |||||||||||||||
| Cash and due from banks | $ | 20,744 | $ | 18,216 | $ | 26,216 | |||||||||
| Federal funds sold | 2 | 3 | 3 | ||||||||||||
| Cash and cash equivalents | 20,746 | 18,219 | 26,219 | ||||||||||||
| Interest-bearing deposits in other financial institutions | 235 | 10 | 10 | ||||||||||||
| Securities available for sale | 47,374 | 44,388 | 47,307 | ||||||||||||
| Federal Home Loan Bank stock | 3,060 | 3,060 | 3,060 | ||||||||||||
| Loans: | |||||||||||||||
| Commercial | 374,565 | 359,368 | 343,561 | ||||||||||||
| Mortgage | 113,332 | 110,663 | 98,559 | ||||||||||||
| Consumer | 15,043 | 13,801 | 13,435 | ||||||||||||
| Total Loans | 502,940 | 483,832 | 455,555 | ||||||||||||
| Allowance for loan losses | (5,097 | ) | (4,661 | ) | (5,177 | ) | |||||||||
| Net loans | 497,843 | 479,171 | 450,378 | ||||||||||||
| Premises and equipment | 9,790 | 10,210 | 10,536 | ||||||||||||
| Other real estate held for sale | 1,947 | 1,884 | 2,481 | ||||||||||||
| Deferred tax asset | 9,097 | 9,933 | 8,367 | ||||||||||||
| Other assets | 5,777 | 5,925 | 5,143 | ||||||||||||
| TOTAL ASSETS | $ | 595,869 | $ | 572,800 | $ | 553,501 | |||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||
| LIABILITIES: | |||||||||||||||
| Deposits: | |||||||||||||||
| Noninterest bearing deposits | $ | 73,732 | $ | 72,936 | $ | 64,736 | |||||||||
| NOW, money market, interest checking | 148,242 | 149,123 | 146,203 | ||||||||||||
| Savings | 15,658 | 13,039 | 12,229 | ||||||||||||
| CDs < $100,000 | 143,140 | 140,495 | 134,767 | ||||||||||||
| CDs > $100,000 | 23,151 | 23,159 | 25,091 | ||||||||||||
| Brokered | 80,093 | 67,547 | 64,881 | ||||||||||||
| Total deposits | 484,016 | 466,299 | 447,907 | ||||||||||||
| Borrowings | 42,087 | 37,852 | 35,925 | ||||||||||||
| Other liabilities | 3,289 | 3,400 | 3,149 | ||||||||||||
| Total liabilities | 529,392 | 507,551 | 486,981 | ||||||||||||
| SHAREHOLDERS' EQUITY: | |||||||||||||||
| Preferred stock - No par value: | |||||||||||||||
| Authorized - 500,000 shares, none issued and outstanding | - | - | 4,000 | ||||||||||||
| 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 respectively | 53,703 | 53,621 | 53,934 | ||||||||||||
| Retained earnings | 12,325 | 11,412 | 8,156 | ||||||||||||
| Accumulated other comprehensive income | 449 | 216 | 430 | ||||||||||||
| Total shareholders' equity | 66,477 | 65,249 | 66,520 | ||||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 595,869 | $ | 572,800 | $ | 553,501 | |||||||||
| MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||
| June 30, | June 30, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||
| INTEREST INCOME: | ||||||||||||||
| Interest and fees on loans: | ||||||||||||||
| Taxable | $ | 6,373 | $ | 6,014 | $ | 12,654 | $ | 11,903 | ||||||
| Tax-exempt | - | 28 | 23 | 55 | ||||||||||
| Interest on securities: | ||||||||||||||
| Taxable | 244 | 241 | 481 | 481 | ||||||||||
| Tax-exempt | 14 | 6 | 27 | 13 | ||||||||||
| Other interest income | 32 | 32 | 80 | 63 | ||||||||||
| Total interest income | 6,663 | 6,321 | 13,265 | 12,515 | ||||||||||
| INTEREST EXPENSE: | ||||||||||||||
| Deposits | 800 | 886 | 1,622 | 1,763 | ||||||||||
| Borrowings | 204 | 166 | 391 | 327 | ||||||||||
| Total interest expense | 1,004 | 1,052 | 2,013 | 2,090 | ||||||||||
| Net interest income | 5,659 | 5,269 | 11,252 | 10,425 | ||||||||||
| Provision for loan losses | 191 | 100 | 374 | 475 | ||||||||||
| Net interest income after provision for loan losses | 5,468 | 5,169 | 10,878 | 9,950 | ||||||||||
| OTHER INCOME: | ||||||||||||||
| Deposit service fees | 192 | 175 | 349 | 337 | ||||||||||
| Income from loans sold on the secondary market | 139 | 279 | 242 | 578 | ||||||||||
| SBA/USDA loan sale gains | 166 | 554 | 548 | 663 | ||||||||||
| Mortgage servicing income | 89 | 182 | 102 | 285 | ||||||||||
| Other | 64 | 61 | 100 | 146 | ||||||||||
| Total other income | 650 | 1,251 | 1,341 | 2,009 | ||||||||||
| OTHER EXPENSE: | ||||||||||||||
| Salaries and employee benefits | 2,523 | 2,375 | 5,064 | 4,681 | ||||||||||
| Occupancy | 546 | 363 | 1,084 | 745 | ||||||||||
| Furniture and equipment | 303 | 255 | 622 | 525 | ||||||||||
| Data processing | 288 | 268 | 574 | 533 | ||||||||||
| Advertising | 123 | 111 | 230 | 215 | ||||||||||
| Professional service fees | 276 | 320 | 607 | 545 | ||||||||||
| Loan and deposit | 83 | 45 | 162 | 118 | ||||||||||
| Writedowns and losses on other real estate held for sale | 14 | 87 | 14 | 89 | ||||||||||
| FDIC insurance assessment | 90 | 95 | 175 | 200 | ||||||||||
| Telephone | 82 | 63 | 164 | 145 | ||||||||||
| Other | 570 | 541 | 1,309 | 1,038 | ||||||||||
| Total other expenses | 4,898 | 4,523 | 10,005 | 8,834 | ||||||||||
| Income before provision for income taxes | 1,220 | 1,897 | 2,214 | 3,125 | ||||||||||
| Provision for income taxes | 414 | 637 | 748 | 1,052 | ||||||||||
| NET INCOME | 806 | 1,260 | 1,466 | 2,073 | ||||||||||
| Preferred dividend and accretion of discount | - | 63 | - | 200 | ||||||||||
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ | 806 | $ | 1,197 | $ | 1,466 | $ | 1,873 | ||||||
| INCOME PER COMMON SHARE: | ||||||||||||||
| Basic | $ | .15 | $ | .22 | $ | .27 | $ | .34 | ||||||
| Diluted | $ | .15 | $ | .22 | $ | .26 | $ | .34 | ||||||
| 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, | |||||||||
| 2014 | 2013 | 2013 | |||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
| Commercial Loans: | |||||||||||
| Real estate - operators of nonresidential buildings | $ | 103,598 | $ | 100,333 | $ | 95,510 | |||||
| Hospitality and tourism | 42,111 | 45,360 | 42,833 | ||||||||
| Lessors of residential buildings | 14,912 | 14,191 | 13,377 | ||||||||
| Gasoline stations and convenience stores | 11,881 | 11,534 | 11,038 | ||||||||
| Real estate agents and managers | 11,388 | 10,922 | 9,472 | ||||||||
| Commercial construction | 10,550 | 10,904 | 16,053 | ||||||||
| Other | 180,125 | 166,124 | 155,278 | ||||||||
| Total Commercial Loans | 374,565 | 359,368 | 343,561 | ||||||||
| 1-4 family residential real estate | 105,868 | 103,768 | 94,254 | ||||||||
| Consumer | 15,043 | 13,801 | 13,435 | ||||||||
| Consumer construction | 7,464 | 6,895 | 4,305 | ||||||||
| Total Loans | $ | 502,940 | $ | 483,832 | $ | 455,555 | |||||
| Credit Quality (at end of period): | ||||||||||||||
| June 30, | December 31, | June 30, | ||||||||||||
| 2014 | 2013 | 2013 | ||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||
| Nonperforming Assets : | ||||||||||||||
| Nonaccrual loans | $ | 2,055 | $ | 1,410 | $ | 3,983 | ||||||||
| Loans past due 90 days or more | - | - | - | |||||||||||
| Restructured loans | 597 | 614 | - | |||||||||||
| Total nonperforming loans | 2,652 | 2,024 | 3,983 | |||||||||||
| Other real estate owned | 1,947 | 1,884 | 2,481 | |||||||||||
| Total nonperforming assets | $ | 4,599 | $ | 3,908 | $ | 6,464 | ||||||||
| Nonperforming loans as a % of loans | .53 | % | .42 | % | .87 | % | ||||||||
| Nonperforming assets as a % of assets | .77 | % | .68 | % | 1.17 | % | ||||||||
| Reserve for Loan Losses: | ||||||||||||||
| At period end | $ | 5,097 | $ | 4,661 | $ | 5,177 | ||||||||
| As a % of average loans | 1.04 | % | 1.01 | % | 1.14 | % | ||||||||
| As a % of nonperforming loans | 192.19 | % | 230.29 | % | 129.98 | % | ||||||||
| As a % of nonaccrual loans | 248.03 | % | 330.57 | % | 129.98 | % | ||||||||
| Texas Ratio | 6.43 | % | 5.59 | % | 9.02 | % | ||||||||
| Charge-off Information (year to date): | ||||||||||||||
| Average loans | $ | 489,656 | $ | 462,500 | $ | 453,023 | ||||||||
| Net charge-offs (recoveries) | $ | (62 | ) | $ | 2,232 | $ | 516 | |||||||
| Charge-offs as a % of average loans | N/M | % | .48 | % | .23 | % | ||||||||
| MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||
| QUARTERLY FINANCIAL HIGHLIGHTS | |||||||||||||||||||||
| QUARTER ENDED | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||||
| 2014 | 2014 | 2013 | 2013 | 2013 | |||||||||||||||||
| BALANCE SHEET (Dollars in thousands) | |||||||||||||||||||||
| Total loans | $ | 502,940 | $ | 485,862 | $ | 483,832 | $ | 472,495 | $ | 455,555 | |||||||||||
| Allowance for loan losses | (5,097 | ) | (4,883 | ) | (4,661 | ) | (4,959 | ) | (5,177 | ) | |||||||||||
| Total loans, net | 497,843 | 480,979 | 479,171 | 467,536 | 450,378 | ||||||||||||||||
| Total assets | 595,869 | 583,592 | 572,800 | 567,917 | 553,501 | ||||||||||||||||
| Core deposits | 380,772 | 384,846 | 375,593 | 375,166 | 357,935 | ||||||||||||||||
| Noncore deposits | 103,244 | 90,864 | 90,706 | 86,522 | 89,972 | ||||||||||||||||
| Total deposits | 484,016 | 475,710 | 466,299 | 461,688 | 447,907 | ||||||||||||||||
| Total borrowings | 42,087 | 38,852 | 37,852 | 35,852 | 35,925 | ||||||||||||||||
| Common shareholders' equity | 66,477 | 65,730 | 65,249 | 63,045 | 62,520 | ||||||||||||||||
| Total shareholders' equity | 66,477 | 65,730 | 65,249 | 67,045 | 66,520 | ||||||||||||||||
| Total shares outstanding | 5,527,690 | 5,527,690 | 5,541,390 | 5,581,339 | 5,554,459 | ||||||||||||||||
| Weighted average shares outstanding | 5,527,690 | 5,530,908 | 5,555,952 | 5,562,835 | 5,556,133 | ||||||||||||||||
| AVERAGE BALANCES (Dollars in thousands) | |||||||||||||||||||||
| Assets | $ | 581,150 | $ | 580,717 | $ | 569,443 | $ | 560,089 | $ | 548,455 | |||||||||||
| Loans | 492,923 | 486,354 | 479,321 | 464,324 | 456,937 | ||||||||||||||||
| Deposits | 469,720 | 473,951 | 461,630 | 456,191 | 439,780 | ||||||||||||||||
| Common Equity | 65,553 | 65,462 | 62,950 | 62,134 | 62,483 | ||||||||||||||||
| Equity | 65,553 | 65,462 | 66,906 | 66,134 | 67,483 | ||||||||||||||||
| INCOME STATEMENT (Dollars in thousands) | |||||||||||||||||||||
| Net interest income | $ | 5,659 | $ | 5,593 | $ | 5,626 | $ | 5,348 | $ | 5,269 | |||||||||||
| Provision for loan losses | 191 | 183 | 825 | 375 | 100 | ||||||||||||||||
| Net interest income after provision | 5,468 | 5,410 | 4,801 | 4,973 | 5,169 | ||||||||||||||||
| Total noninterest income | 650 | 691 | 1,191 | 738 | 1,251 | ||||||||||||||||
| Total noninterest expense | 4,898 | 5,107 | 4,935 | 4,359 | 4,523 | ||||||||||||||||
| Income before taxes | 1,220 | 994 | 1,057 | 1,352 | 1,897 | ||||||||||||||||
| Provision for income taxes | 414 | 334 | (1,911 | ) | 456 | 637 | |||||||||||||||
| Net income | 806 | 660 | 2,968 | 896 | 1,260 | ||||||||||||||||
| Preferred dividend expense | - | - | 58 | 50 | 63 | ||||||||||||||||
| Net income available to common shareholders | $ | 806 | $ | 660 | $ | 2,910 | $ | 846 | $ | 1,197 | |||||||||||
| PER SHARE DATA | |||||||||||||||||||||
| Earnings | $ | .15 | $ | .12 | $ | .52 | $ | .15 | $ | .22 | |||||||||||
| Book value per common share | 12.03 | 11.89 | 11.77 | 11.30 | 11.26 | ||||||||||||||||
| Market value, closing price | 12.90 | 12.54 | 9.90 | 9.10 | 8.88 | ||||||||||||||||
| ASSET QUALITY RATIOS | |||||||||||||||||||||
| Nonperforming loans/total loans | .53 | % | .31 | % | .42 | % | .91 | % | .87 | % | |||||||||||
| Nonperforming assets/total assets | .77 | .63 | .68 | 1.21 | 1.17 | ||||||||||||||||
| Allowance for loan losses/total loans | 1.01 | 1.01 | .96 | 1.09 | 1.14 | ||||||||||||||||
| Allowance for loan losses/nonperforming loans | 192.19 | 327.50 | 230.29 | 114.98 | 129.98 | ||||||||||||||||
| Texas ratio (1) | 6.43 | 5.18 | 5.59 | 9.56 | 9.02 | ||||||||||||||||
| PROFITABILITY RATIOS | |||||||||||||||||||||
| Return on average assets | .56 | % | .46 | % | 2.03 | % | .60 | % | .88 | % | |||||||||||
| Return on average common equity | 4.93 | 4.09 | 18.34 | 5.40 | 7.69 | ||||||||||||||||
| Return on average equity | 4.93 | 4.09 | 17.26 | 5.08 | 7.12 | ||||||||||||||||
| Net interest margin | 4.18 | 4.25 | 4.24 | 4.12 | 4.16 | ||||||||||||||||
| Efficiency ratio | 77.55 | 80.57 | 66.94 | 70.64 | 68.02 | ||||||||||||||||
| Average loans/average deposits | 104.94 | 102.62 | 103.83 | 101.78 | 103.90 | ||||||||||||||||
| CAPITAL ADEQUACY RATIOS | |||||||||||||||||||||
| Tier 1 leverage ratio | 10.50 | % | 10.25 | % | 10.31 | % | 10.90 | % | 11.01 | % | |||||||||||
| Tier 1 capital to risk weighted assets | 11.86 | 11.79 | 11.83 | 12.45 | 12.74 | ||||||||||||||||
| Total capital to risk weighted assets | 12.87 | 12.79 | 12.79 | 13.47 | 13.85 | ||||||||||||||||
| Average equity/average assets (for the quarter) | 11.28 | 11.27 | 11.75 | 11.81 | 12.30 | ||||||||||||||||
| Tangible equity/tangible assets (at quarter end) | 11.16 | 11.26 | 11.75 | 11.81 | 12.30 | ||||||||||||||||
| (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