 |
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For Immediate Release
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NASDAQ Stock Market:
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MCBC
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Macatawa Bank Corporation Reports
Third Quarter 2017 Results
HOLLAND, Mich. (October 26, 2017) – Macatawa Bank Corporation (NASDAQ: MCBC) today announced its results for the third quarter of 2017, reflecting continued strong financial performance.
| ● |
Net income of $4.9 million in third quarter 2017, up 6% from $4.6 million in the third quarter 2016 which included a one-time adjustment to federal income tax expense that increased the prior period earnings by $512,000
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| ● |
Year-to-date earnings through third quarter of 2017 were up 19% over the prior year
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| ● |
Continued trend of increased overall revenue with reduction in expenses
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| ● |
Core deposit balances up by $147 million, nearly 11%, from a year ago
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| ● |
Asset quality metrics remained strong:
|
| ● |
Past due loans remained at low levels - only 0.07% of total loans at end of third quarter 2017
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| ● |
Favorable loan collection results – eleven consecutive quarters of net recoveries
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Macatawa reported net income of $4.9 million, or $0.14 per diluted share, in the third quarter 2017 compared to $4.6 million, or $0.14 per diluted share, in the third quarter 2016. For the first nine months of 2017, Macatawa reported net income of $14.1 million, or $0.42 per diluted share, compared to $11.8 million, or $0.35 per diluted share, for the same period in 2016.
“We are pleased to report strong operating performance for the third quarter of 2017”, said Ronald L. Haan, President and CEO of the Company. “Our long term strategy of driving profitable growth remains the same, and we remain committed to building a well-disciplined company that will deliver superior financial services to the communities of Western Michigan, while also providing strong and consistent financial performance for our shareholders.”
Mr. Haan concluded, “Earnings improvement continues to be driven primarily by improvement in net interest income resulting from growth in average balances of business loans and investment securities, and continued strong growth in core deposit funding. Overall, our financial condition is strong, and we are well positioned to support future growth and benefit from future interest rate increases.”
Macatawa Bank Corporation 3Q Results / page 2 of 5
Operating Results
Net interest income for the third quarter 2017 totaled $13.1 million, an increase of $433,000 from the second quarter 2017 and an increase of $1.2 million from the third quarter 2016. Net interest margin was 3.21 percent, down 3 basis points from the second quarter 2017, and up 13 basis points from the third quarter 2016. Increased levels of short-term low-yielding investments in the third quarter caused 7 basis points of downward pressure on net interest margin compared to the second quarter of 2017.
Average interest earning assets for the third quarter 2017 increased $57.2 million from the second quarter 2017 and were up $96.5 million from the third quarter 2016 primarily due to growth on the funding side of the balance sheet in core deposits.
Non-interest income decreased $178,000 in the third quarter 2017 compared to the second quarter 2017 and decreased $775,000 from the third quarter 2016. These fluctuations were primarily driven by gains on sales of mortgage loans. Gains on sales of mortgage loans in the third quarter 2017 were down $107,000 compared to the second quarter 2017 and down $806,000 from the third quarter 2016. The Bank originated $11.3 million in loans for sale in the third quarter 2017 compared to $16.7 million in loans for sale in the second quarter 2017 and $38.2 million in loans for sale in the third quarter 2016.
Non-interest expense was $10.8 million for the third quarter 2017, compared to $10.8 million for the second quarter 2017 and $11.3 million for the third quarter 2016. The largest component of non-interest expense was salaries and benefit expenses. Salaries and benefit expenses were up $58,000 compared to the second quarter 2017 and were down $158,000 for the nine months ended September 30, 2017 compared to the same period in the prior year. Total salaries and benefits expense has remained at a consistent level over the past several quarters due to efforts to prudently manage overall cost levels. The largest fluctuation between periods in non-interest expense was in nonperforming asset expenses. Nonperforming asset expenses increased $81,000 compared to the second quarter 2017 and decreased $402,000 compared to the third quarter 2016 due to continued reductions in the level of foreclosed properties and net gains realized on sales of such properties in 2017. Total net realized gains were $190,000 for the third quarter 2017 compared to $321,000 for the second quarter 2017 and $105,000 for the third quarter 2016. Other categories of non-interest expense were relatively flat compared to the second quarter 2017 and the third quarter 2016.
Federal income tax expense was $2.2 million for the third quarter 2017 compared to $2.1 million for the second quarter 2017 and $1.4 million for the third quarter 2016. The effective tax rate was 30.7% for the third quarter 2017, compared to 30.9% for the second quarter 2017 and 22.7% for the third quarter 2016. The effective tax rate for the third quarter 2016 was lower due to tax credits and other adjustments recognized during that quarter amounting to $512,000.
Macatawa Bank Corporation 3Q Results / page 3 of 5
Asset Quality
As a result of the consistent improvements in nonperforming loans and past due loans over the past several quarters, the reduction in historical loan loss ratios, and net loan recoveries experienced in the third quarter 2017, a negative provision for loan losses of $350,000 was recorded in the third quarter 2017. Net loan recoveries for the third quarter 2017 were $214,000, compared to second quarter 2017 net loan recoveries of $374,000 and third quarter 2016 net loan recoveries of $138,000. The Company has experienced net loan recoveries in each of the past eleven quarters. Total loans past due on payments by 30 days or more were negligible and amounted to $872,000 at September 30, 2017, down 40 percent from $1.4 million at December 31, 2016 and up $527,000 from $345,000 at September 30, 2016. Delinquency as a percentage of total loans was 0.07 percent at September 30, 2017.
The allowance for loan losses of $16.4 million was 1.30 percent of total loans at September 30, 2017, compared to 1.32 percent of total loans at December 31, 2016, and 1.36 percent at September 30, 2016. The coverage ratio of allowance for loan losses to nonperforming loans continued to be strong and significantly exceeded 1-to-1 coverage at 31.5-to-1 as of September 30, 2017.
At September 30, 2017, the Company's nonperforming loans were $521,000, representing 0.04 percent of total loans. This compares to $300,000 (0.02 percent of total loans) at December 31, 2016 and $233,000 (0.02 percent of total loans) at September 30, 2016. Other real estate owned and repossessed assets were $6.7 million at September 30, 2017, compared to $12.3 million at December 31, 2016 and $13.1 million at September 30, 2016. Total nonperforming assets, including other real estate owned and nonperforming loans, have decreased by $6.2 million, or 46 percent, from September 30, 2016 to September 30, 2017.
A break-down of non-performing loans is shown in the table below.
|
Dollars in 000s
|
Sept 30,
2017
|
Jun 30,
2017
|
Mar 31,
2017
|
Dec 31,
2016
|
Sept 30,
2016
|
|||||||||||||||
|
Commercial Real Estate
|
$
|
440
|
$
|
436
|
$
|
252
|
$
|
183
|
$
|
192
|
||||||||||
|
Commercial and Industrial
|
4
|
6
|
127
|
36
|
9
|
|||||||||||||||
|
Total Commercial Loans
|
444
|
442
|
379
|
219
|
201
|
|||||||||||||||
|
Residential Mortgage Loans
|
58
|
206
|
2
|
58
|
2
|
|||||||||||||||
|
Consumer Loans
|
19
|
22
|
20
|
23
|
30
|
|||||||||||||||
|
Total Non-Performing Loans
|
$
|
521
|
$
|
670
|
$
|
401
|
$
|
300
|
$
|
233
|
||||||||||
Total non-performing assets were $7.2 million, or 0.40 percent of total assets, at September 30, 2017. A break-down of non-performing assets is shown in the table below.
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Dollars in 000s
|
Sept 30,
2017
|
Jun 30,
2017
|
Mar 31,
2017
|
Dec 31,
2016
|
Sept 30,
2016
|
|||||||||||||||
|
Non-Performing Loans
|
$
|
521
|
$
|
670
|
$
|
401
|
$
|
300
|
$
|
233
|
||||||||||
|
Other Repossessed Assets
|
---
|
---
|
---
|
---
|
---
|
|||||||||||||||
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Other Real Estate Owned
|
6,661
|
7,097
|
12,074
|
12,253
|
13,110
|
|||||||||||||||
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Total Non-Performing Assets
|
$
|
7,182
|
$
|
7,767
|
$
|
12,475
|
$
|
12,553
|
$
|
13,343
|
||||||||||
Macatawa Bank Corporation 3Q Results / page 4 of 5
Balance Sheet, Liquidity and Capital
Total assets were $1.80 billion at September 30, 2017, an increase of $44.0 million from $1.76 billion at June 30, 2017 and an increase of $149.4 million from $1.65 billion at September 30, 2016. Total loans were $1.26 billion at September 30, 2017, an increase of $8.7 million from $1.25 billion at June 30, 2017 and an increase of $23.6 million from $1.24 billion at September 30, 2016.
Commercial loans increased by $26.0 million from September 30, 2016 to September 30, 2017, partially offset by a decrease of $2.4 million in our residential mortgage and consumer loan portfolios. Commercial real estate loans increased by $30.3 million while commercial and industrial loans decreased by $4.3 million during the same period.
Commercial loan production volume was up compared to the second quarter of 2017, as well as compared to the third quarter of 2016. The following table shows a breakout of the Bank’s commercial loan activity:
|
Dollars in 000s
|
3rd Qtr
2017
|
2nd Qtr
2017
|
1st Qtr
2017
|
4th Qtr
2016
|
3rd Qtr
2016
|
|||||||||||||||
|
Commerical loans originated
|
$
|
68,282
|
$
|
33,435
|
$
|
60,356
|
$
|
78,398
|
$
|
61,112
|
||||||||||
|
Repayments of commercial loans
|
(37,138
|
)
|
(30,090
|
)
|
(58,600
|
)
|
(40,768
|
)
|
(35,869
|
)
|
||||||||||
|
Change in undist.–available credit
|
(31,702
|
)
|
(15,706
|
)
|
(6,960
|
)
|
6,523
|
3,494
|
||||||||||||
|
Net change in commercial loans
|
$
|
(558
|
)
|
$
|
(12,361
|
)
|
$
|
(5,204
|
)
|
$
|
44,153
|
$
|
28,737
|
|||||||
The composition of the commercial loan portfolio is shown in the table below:
|
Dollars in 000s
|
Sept 30,
2017
|
Jun 30,
2017
|
Mar 31,
2017
|
Dec 31,
2016
|
Sept 30,
2016
|
|||||||||||||||
|
Construction and Development
|
$
|
84,659
|
$
|
82,317
|
$
|
78,910
|
$
|
79,596
|
$
|
76,077
|
||||||||||
|
Other Commercial Real Estate
|
445,703
|
432,223
|
429,898
|
438,385
|
423,991
|
|||||||||||||||
|
Commercial Loans Secured by Real Estate
|
530,362
|
514,540
|
508,808
|
517,981
|
500,068
|
|||||||||||||||
|
Commercial and Industrial
|
418,838
|
435,218
|
453,311
|
449,342
|
423,102
|
|||||||||||||||
|
Total Commercial Loans
|
$
|
949,200
|
$
|
949,758
|
$
|
962,119
|
$
|
967,323
|
$
|
923,170
|
||||||||||
|
Residential Developer Loans (a)
|
$
|
24,507
|
$
|
21,244
|
$
|
24,662
|
$
|
26,003
|
$
|
26,890
|
||||||||||
| (a) |
Represents the amount of loans to residential developers secured by single family residential property which is included in commercial loans secured by real estate.
|
Total deposits were $1.51 billion at September 30, 2017, up $46.2 million from $1.46 billion at June 30, 2017 and were up $147.6 million, or 11 percent, from $1.36 billion at September 30, 2016. The increase in total deposits from September 30, 2016 was primarily in interest-bearing checking (up $58.4 million) and noninterest checking account balances (up $42.1 million). The other categories of deposits also increased including money market deposits (up $20.2 million), savings (up $11.7 million) and certificates of deposit (up $15.2 million). The Bank continues to be successful at attracting and retaining core deposit customers. Customer deposit accounts remain insured to the highest levels available under FDIC deposit insurance.
Macatawa Bank Corporation 3Q Results / page 5 of 5
The Bank's risk-based regulatory capital ratios were higher at September 30, 2017 compared to June 30, 2017 and September 30, 2016 due to earnings growth, and continue to be at levels comfortably above those required to be categorized as “well capitalized” under applicable regulatory capital guidelines. As such, the Bank was categorized as "well capitalized" at September 30, 2017.
About Macatawa Bank
Headquartered in Holland, Mich., Macatawa Bank offers a full range of banking, retail and commercial lending, wealth management and ecommerce services to individuals, businesses and governmental entities from a network of 26 full-service branches located throughout communities in Kent, Ottawa and northern Allegan counties. The bank is recognized for its local management team and decision making, along with providing customers excellent service, a rewarding experience and superior financial products. Macatawa Bank has been recognized for the past seven consecutive years as “West Michigan’s 101 Best and Brightest Companies to Work For”. For more information, visit www.macatawabank.com.
|
|
CAUTIONARY STATEMENT: This press release contains forward-looking statements that are based on management's current beliefs, expectations, assumptions, estimates, plans and intentions. Forward-looking statements are identifiable by words or phrases such as "believe," "expect," "may," "should," "will," ”intend,” "continue," "improving," "additional," "focus," "forward," "future," "efforts," "strategy," "momentum," "positioned," and other similar words or phrases. Such statements are based upon current beliefs and expectations and involve substantial risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These statements include, among others, statements related to trends in our key operating metrics and financial performance, future levels of earnings and profitability, future levels of earning assets, future asset quality, future growth, and future net interest margin. All statements with references to future time periods are forward-looking. Management's determination of the provision and allowance for loan losses, the appropriate carrying value of intangible assets (including deferred tax assets) and other real estate owned and the fair value of investment securities (including whether any impairment on any investment security is temporary or other-than-temporary and the amount of any impairment) involves judgments that are inherently forward-looking. Our ability to sell other real estate owned at its carrying value or at all, reduce non-performing asset expenses, utilize our deferred tax asset, successfully implement new programs and initiatives, increase efficiencies, maintain our current level of deposits and other sources of funding, maintain liquidity, respond to declines in collateral values and credit quality, improve profitability, and produce consistent core earnings is not entirely within our control and is not assured. The future effect of changes in the real estate, financial and credit markets and the national and regional economy on the banking industry, generally, and Macatawa Bank Corporation, specifically, are also inherently uncertain. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions ("risk factors") that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed in or implied by such forward-looking statements. Macatawa Bank Corporation does not undertake to update forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.
Risk factors include, but are not limited to, the risk factors described in "Item 1A - Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2016. These and other factors are representative of the risk factors that may emerge and could cause a difference between an ultimate actual outcome and a preceding forward-looking statement.
|
|
|
MACATAWA BANK CORPORATION
CONSOLIDATED FINANCIAL SUMMARY
(Unaudited)
(Dollars in thousands except per share information)
|
|
Quarterly
|
Nine Months Ended
September 30,
|
|||||||||||||||||||
|
3rd Qtr
2017
|
2nd Qtr
2017
|
3rd Qtr
2016
|
||||||||||||||||||
|
EARNINGS SUMMARY
|
2017
|
2016
|
||||||||||||||||||
|
Total interest income
|
$
|
14,626
|
$
|
14,042
|
$
|
13,122
|
$
|
42,516
|
$
|
39,003
|
||||||||||
|
Total interest expense
|
1,488
|
1,337
|
1,220
|
4,090
|
3,755
|
|||||||||||||||
|
Net interest income
|
13,138
|
12,705
|
11,902
|
38,426
|
35,248
|
|||||||||||||||
|
Provision for loan losses
|
(350
|
)
|
(500
|
)
|
(250
|
)
|
(1,350
|
)
|
(1,100
|
)
|
||||||||||
|
Net interest income after provision for loan losses
|
13,488
|
13,205
|
12,152
|
39,776
|
36,348
|
|||||||||||||||
|
NON-INTEREST INCOME
|
||||||||||||||||||||
|
Deposit service charges
|
1,172
|
1,110
|
1,152
|
3,342
|
3,312
|
|||||||||||||||
|
Net gains on mortgage loans
|
369
|
476
|
1,175
|
1,273
|
2,235
|
|||||||||||||||
|
Trust fees
|
801
|
833
|
790
|
2,412
|
2,286
|
|||||||||||||||
|
Other
|
1,958
|
2,059
|
1,958
|
5,982
|
6,386
|
|||||||||||||||
|
Total non-interest income
|
4,300
|
4,478
|
5,075
|
13,009
|
14,219
|
|||||||||||||||
|
NON-INTEREST EXPENSE
|
||||||||||||||||||||
|
Salaries and benefits
|
6,211
|
6,153
|
6,166
|
18,363
|
18,521
|
|||||||||||||||
|
Occupancy
|
922
|
991
|
901
|
2,939
|
2,784
|
|||||||||||||||
|
Furniture and equipment
|
797
|
750
|
772
|
2,278
|
2,476
|
|||||||||||||||
|
FDIC assessment
|
134
|
134
|
166
|
404
|
638
|
|||||||||||||||
|
Problem asset costs, including losses
|
(77
|
)
|
(158
|
)
|
325
|
(140
|
)
|
1,196
|
||||||||||||
|
Other
|
2,769
|
2,922
|
2,943
|
8,590
|
8,679
|
|||||||||||||||
|
Total non-interest expense
|
10,756
|
10,792
|
11,273
|
32,434
|
34,294
|
|||||||||||||||
|
Income before income tax
|
7,032
|
6,891
|
5,954
|
20,351
|
16,273
|
|||||||||||||||
|
Income tax expense
|
2,157
|
2,129
|
1,350
|
6,253
|
4,429
|
|||||||||||||||
|
Net income
|
$
|
4,875
|
$
|
4,762
|
$
|
4,604
|
$
|
14,098
|
$
|
11,844
|
||||||||||
|
Basic earnings per common share
|
$
|
0.14
|
$
|
0.14
|
$
|
0.14
|
$
|
0.42
|
$
|
0.35
|
||||||||||
|
Diluted earnings per common share
|
$
|
0.14
|
$
|
0.14
|
$
|
0.14
|
$
|
0.42
|
$
|
0.35
|
||||||||||
|
Return on average assets
|
1.10
|
%
|
1.11
|
%
|
1.10
|
%
|
1.08
|
%
|
0.95
|
%
|
||||||||||
|
Return on average equity
|
11.34
|
%
|
11.32
|
%
|
11.50
|
%
|
11.17
|
%
|
10.06
|
%
|
||||||||||
|
Net interest margin (fully taxable equivalent)
|
3.21
|
%
|
3.24
|
%
|
3.08
|
%
|
3.24
|
%
|
3.09
|
%
|
||||||||||
|
Efficiency ratio
|
61.68
|
%
|
62.81
|
%
|
66.40
|
%
|
63.06
|
%
|
69.33
|
%
|
||||||||||
|
BALANCE SHEET DATA
Assets |
September 30
2017
|
June 30
2017
|
September 30
2016
|
|||||||||
|
Cash and due from banks
|
$
|
28,318
|
$
|
31,165
|
$
|
31,879
|
||||||
|
Federal funds sold and other short-term investments
|
131,571
|
114,104
|
25,872
|
|||||||||
|
Securities available for sale
|
214,182
|
184,761
|
184,403
|
|||||||||
|
Securities held to maturity
|
61,927
|
68,818
|
58,893
|
|||||||||
|
Federal Home Loan Bank Stock
|
11,558
|
11,558
|
11,558
|
|||||||||
|
Loans held for sale
|
2,199
|
3,184
|
2,013
|
|||||||||
|
Total loans
|
1,260,037
|
1,251,355
|
1,236,395
|
|||||||||
|
Less allowance for loan loss
|
16,434
|
16,570
|
16,847
|
|||||||||
|
Net loans
|
1,243,603
|
1,234,785
|
1,219,548
|
|||||||||
|
Premises and equipment, net
|
46,822
|
48,626
|
50,174
|
|||||||||
|
Bank-owned life insurance
|
40,042
|
39,781
|
39,088
|
|||||||||
|
Other real estate owned
|
6,661
|
7,097
|
13,110
|
|||||||||
|
Other assets
|
16,163
|
15,184
|
17,148
|
|||||||||
|
Total Assets
|
$
|
1,803,046
|
$
|
1,759,063
|
$
|
1,653,686
|
||||||
|
Liabilities and Shareholders' Equity
|
||||||||||||
|
Noninterest-bearing deposits
|
$
|
497,310
|
$
|
481,769
|
$
|
455,164
|
||||||
|
Interest-bearing deposits
|
1,008,868
|
978,221
|
903,463
|
|||||||||
|
Total deposits
|
1,506,178
|
1,459,990
|
1,358,627
|
|||||||||
|
Other borrowed funds
|
72,118
|
82,785
|
84,173
|
|||||||||
|
Long-term debt
|
41,238
|
41,238
|
41,238
|
|||||||||
|
Other liabilities
|
10,048
|
4,875
|
7,403
|
|||||||||
|
Total Liabilities
|
1,629,582
|
1,588,888
|
1,491,441
|
|||||||||
|
Shareholders' equity
|
173,464
|
170,175
|
162,245
|
|||||||||
|
Total Liabilities and Shareholders' Equity
|
$
|
1,803,046
|
$
|
1,759,063
|
$
|
1,653,686
|
||||||
|
MACATAWA BANK CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Unaudited)
(Dollars in thousands except per share information)
|
|
Quarterly
|
Year to Date
|
|||||||||||||||||||||||||||
|
3rd Qtr
2017
|
2nd Qtr
2017
|
1st Qtr
2017
|
4th Qtr
2016
|
3rd Qtr
2016
|
2017
|
2016
|
||||||||||||||||||||||
|
EARNINGS SUMMARY
|
||||||||||||||||||||||||||||
|
Net interest income
|
$
|
13,138
|
$
|
12,705
|
$
|
12,583
|
$
|
12,292
|
$
|
11,902
|
$
|
38,426
|
$
|
35,248
|
||||||||||||||
|
Provision for loan losses
|
(350
|
)
|
(500
|
)
|
(500
|
)
|
(250
|
)
|
(250
|
)
|
(1,350
|
)
|
(1,100
|
)
|
||||||||||||||
|
Total non-interest income
|
4,300
|
4,478
|
4,231
|
4,856
|
5,075
|
13,009
|
14,219
|
|||||||||||||||||||||
|
Total non-interest expense
|
10,756
|
10,792
|
10,888
|
11,488
|
11,273
|
32,434
|
34,294
|
|||||||||||||||||||||
|
Federal income tax expense
|
2,157
|
2,129
|
1,966
|
1,802
|
1,350
|
6,253
|
4,429
|
|||||||||||||||||||||
|
Net income
|
$
|
4,875
|
$
|
4,762
|
$
|
4,460
|
$
|
4,108
|
$
|
4,604
|
$
|
14,098
|
$
|
11,844
|
||||||||||||||
|
Basic earnings per common share
|
$
|
0.14
|
$
|
0.14
|
$
|
0.13
|
$
|
0.12
|
$
|
0.14
|
$
|
0.42
|
$
|
0.35
|
||||||||||||||
|
Diluted earnings per common share
|
$
|
0.14
|
$
|
0.14
|
$
|
0.13
|
$
|
0.12
|
$
|
0.14
|
$
|
0.42
|
$
|
0.35
|
||||||||||||||
|
MARKET DATA
|
||||||||||||||||||||||||||||
|
Book value per common share
|
$
|
5.11
|
$
|
5.01
|
$
|
4.89
|
$
|
4.78
|
$
|
4.78
|
$
|
5.11
|
$
|
4.78
|
||||||||||||||
|
Tangible book value per common share
|
$
|
5.11
|
$
|
5.01
|
$
|
4.89
|
$
|
4.78
|
$
|
4.78
|
$
|
5.11
|
$
|
4.78
|
||||||||||||||
|
Market value per common share
|
$
|
10.26
|
$
|
9.54
|
$
|
9.88
|
$
|
10.41
|
$
|
7.99
|
$
|
10.26
|
$
|
7.99
|
||||||||||||||
|
Average basic common shares
|
33,942,248
|
33,942,318
|
33,941,010
|
33,920,535
|
33,921,599
|
33,942,318
|
33,923,067
|
|||||||||||||||||||||
|
Average diluted common shares
|
33,947,269
|
33,948,127
|
33,948,584
|
33,923,371
|
33,921,599
|
33,948,419
|
33,923,067
|
|||||||||||||||||||||
|
Period end common shares
|
33,941,953
|
33,938,486
|
33,944,788
|
33,940,788
|
33,920,740
|
33,941,953
|
33,920,740
|
|||||||||||||||||||||
|
PERFORMANCE RATIOS
|
||||||||||||||||||||||||||||
|
Return on average assets
|
1.10
|
%
|
1.11
|
%
|
1.05
|
%
|
0.97
|
%
|
1.10
|
%
|
1.08
|
%
|
0.95
|
%
|
||||||||||||||
|
Return on average equity
|
11.34
|
%
|
11.32
|
%
|
10.86
|
%
|
10.08
|
%
|
11.50
|
%
|
11.17
|
%
|
10.06
|
%
|
||||||||||||||
|
Net interest margin (fully taxable equivalent)
|
3.21
|
%
|
3.24
|
%
|
3.26
|
%
|
3.17
|
%
|
3.08
|
%
|
3.24
|
%
|
3.09
|
%
|
||||||||||||||
|
Efficiency ratio
|
61.68
|
%
|
62.81
|
%
|
64.76
|
%
|
66.99
|
%
|
66.40
|
%
|
63.06
|
%
|
69.33
|
%
|
||||||||||||||
|
Full-time equivalent employees (period end)
|
343
|
344
|
338
|
342
|
337
|
343
|
337
|
|||||||||||||||||||||
|
ASSET QUALITY
|
||||||||||||||||||||||||||||
|
Gross charge-offs
|
$
|
55
|
$
|
139
|
$
|
26
|
$
|
47
|
$
|
46
|
$
|
221
|
$
|
158
|
||||||||||||||
|
Net charge-offs
|
$
|
(214
|
)
|
$
|
(374
|
)
|
$
|
(234
|
)
|
$
|
(364
|
)
|
$
|
(138
|
)
|
$
|
(822
|
)
|
$
|
(866
|
)
|
|||||||
|
Net charge-offs to average loans (annualized)
|
-0.07
|
%
|
-0.12
|
%
|
-0.07
|
%
|
-0.12
|
%
|
-0.05
|
%
|
-0.09
|
%
|
-0.10
|
%
|
||||||||||||||
|
Nonperforming loans
|
$
|
521
|
$
|
670
|
$
|
401
|
$
|
300
|
$
|
233
|
$
|
521
|
$
|
233
|
||||||||||||||
|
Other real estate and repossessed assets
|
$
|
6,661
|
$
|
7,097
|
$
|
12,074
|
$
|
12,253
|
$
|
13,110
|
$
|
6,661
|
$
|
13,110
|
||||||||||||||
|
Nonperforming loans to total loans
|
0.04
|
%
|
0.05
|
%
|
0.03
|
%
|
0.02
|
%
|
0.02
|
%
|
0.04
|
%
|
0.02
|
%
|
||||||||||||||
|
Nonperforming assets to total assets
|
0.40
|
%
|
0.44
|
%
|
0.71
|
%
|
0.72
|
%
|
0.81
|
%
|
0.40
|
%
|
0.81
|
%
|
||||||||||||||
|
Allowance for loan losses
|
$
|
16,434
|
$
|
16,570
|
$
|
16,696
|
$
|
16,962
|
$
|
16,847
|
$
|
16,434
|
$
|
16,847
|
||||||||||||||
|
Allowance for loan losses to total loans
|
1.30
|
%
|
1.32
|
%
|
1.32
|
%
|
1.32
|
%
|
1.36
|
%
|
1.30
|
%
|
1.36
|
%
|
||||||||||||||
|
Allowance for loan losses to nonperforming loans
|
3154.32
|
%
|
2473.13
|
%
|
4163.34
|
%
|
5654.00
|
%
|
7230.47
|
%
|
3154.32
|
%
|
7230.47
|
%
|
||||||||||||||
|
CAPITAL
|
||||||||||||||||||||||||||||
|
Average equity to average assets
|
9.69
|
%
|
9.76
|
%
|
9.63
|
%
|
9.62
|
%
|
9.53
|
%
|
9.69
|
%
|
9.43
|
%
|
||||||||||||||
|
Common equity tier 1 to risk weighted assets (Consolidated)
|
11.70
|
%
|
11.60
|
%
|
11.28
|
%
|
11.03
|
%
|
11.30
|
%
|
11.70
|
%
|
11.30
|
%
|
||||||||||||||
|
Tier 1 capital to average assets (Consolidated)
|
12.04
|
%
|
12.21
|
%
|
12.11
|
%
|
12.01
|
%
|
11.97
|
%
|
12.04
|
%
|
11.97
|
%
|
||||||||||||||
|
Total capital to risk-weighted assets (Consolidated)
|
15.50
|
%
|
15.45
|
%
|
15.12
|
%
|
14.88
|
%
|
15.30
|
%
|
15.50
|
%
|
15.30
|
%
|
||||||||||||||
|
Common equity tier 1 to risk weighted assets (Bank)
|
13.99
|
%
|
13.89
|
%
|
13.60
|
%
|
13.35
|
%
|
13.71
|
%
|
13.99
|
%
|
13.71
|
%
|
||||||||||||||
|
Tier 1 capital to average assets (Bank)
|
11.72
|
%
|
11.87
|
%
|
11.79
|
%
|
11.69
|
%
|
11.64
|
%
|
11.72
|
%
|
11.64
|
%
|
||||||||||||||
|
Total capital to risk-weighted assets (Bank)
|
15.10
|
%
|
15.02
|
%
|
14.73
|
%
|
14.49
|
%
|
14.90
|
%
|
15.10
|
%
|
14.90
|
%
|
||||||||||||||
|
Tangible common equity to assets
|
9.63
|
%
|
9.70
|
%
|
9.51
|
%
|
9.33
|
%
|
9.82
|
%
|
9.63
|
%
|
9.82
|
%
|
||||||||||||||
|
END OF PERIOD BALANCES
|
||||||||||||||||||||||||||||
|
Total portfolio loans
|
$
|
1,260,037
|
$
|
1,251,355
|
$
|
1,266,128
|
$
|
1,280,812
|
$
|
1,236,395
|
$
|
1,260,037
|
$
|
1,236,395
|
||||||||||||||
|
Earning assets
|
1,680,458
|
1,633,383
|
1,617,331
|
1,612,533
|
1,514,797
|
1,680,458
|
1,514,797
|
|||||||||||||||||||||
|
Total assets
|
1,803,046
|
1,759,063
|
1,748,853
|
1,741,013
|
1,653,686
|
1,803,046
|
1,653,686
|
|||||||||||||||||||||
|
Deposits
|
1,506,178
|
1,459,990
|
1,433,146
|
1,448,724
|
1,358,627
|
1,506,178
|
1,358,627
|
|||||||||||||||||||||
|
Total shareholders' equity
|
173,464
|
170,175
|
166,145
|
162,239
|
162,245
|
173,464
|
162,245
|
|||||||||||||||||||||
|
AVERAGE BALANCES
|
||||||||||||||||||||||||||||
|
Total portfolio loans
|
$
|
1,252,075
|
$
|
1,260,051
|
$
|
1,264,835
|
$
|
1,245,093
|
$
|
1,215,953
|
$
|
1,258,940
|
$
|
1,210,511
|
||||||||||||||
|
Earning assets
|
1,652,028
|
1,594,849
|
1,579,758
|
1,566,238
|
1,555,550
|
1,609,143
|
1,542,133
|
|||||||||||||||||||||
|
Total assets
|
1,775,302
|
1,723,575
|
1,706,643
|
1,696,007
|
1,680,097
|
1,735,425
|
1,666,055
|
|||||||||||||||||||||
|
Deposits
|
1,481,539
|
1,419,775
|
1,397,596
|
1,401,186
|
1,377,462
|
1,433,277
|
1,363,400
|
|||||||||||||||||||||
|
Total shareholders' equity
|
171,987
|
168,240
|
164,317
|
163,092
|
160,196
|
168,209
|
157,046
|
|||||||||||||||||||||