 |
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|
For Immediate Release
|
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|
NASDAQ Stock Market:
|
MCBC
|
|
Macatawa Bank Corporation Reports
Fourth Quarter and Full Year 2018 Results
HOLLAND, Mich. (January 24, 2019) – Macatawa Bank Corporation (NASDAQ: MCBC) today announced its results for the fourth quarter and full year of 2018, reflecting continued strong financial performance.
| · |
Net income of $7.0 million in fourth quarter 2018 versus $2.2 million in the fourth quarter 2017
|
| · |
Full year 2018 net income of $26.4 million versus $16.3 million in 2017 – up 62%
|
| · |
2018 earnings positively impacted by tax reform enacted at end of 2017
|
| · |
Pretax earnings increased by 32% and 20% for the fourth quarter and full year 2018 compared to the same periods in the prior year, reflecting healthy core earnings
improvement
|
| · |
Continued trend of increased total revenue while holding expenses flat
|
| o |
Full year net interest income up $7.7 million, or 15%, over 2017
|
| o |
Full year non-interest expense up $641,000, or 1%, over 2017
|
| · |
Loan portfolio balances up by $85.3 million (6%), from a year ago
|
| · |
Core deposit balances up by $97.7 million (6%), from a year ago
|
| · |
Asset quality metrics remained strong
|
Macatawa reported net income of $7.0 million, or $0.21 per diluted share, in the fourth quarter
2018 compared to $2.2 million, or $0.06 per diluted share, in the fourth quarter 2017. For the full year 2018, the Company reported net income of $26.4 million, or $0.78 per diluted share compared to $16.3 million, or $0.48 per diluted
share, for the same period in 2017. The fourth quarter and full year 2017 earnings were reduced by $2.5 million resulting from an increase in federal income tax expense necessary to revalue the Company’s net deferred tax assets at the end of the
year as a result of tax reform enacted at the end of 2017. Tax expense for 2018 was positively impacted by the reduction in the corporate tax rate from 35% to 21%.
“We are pleased to report strong operating performance for the fourth quarter and full year of 2018”, said Ronald L. Haan, President and CEO of the Company.
“Earnings improvement has been driven primarily by growth in net interest income. This was the result of growth in balances of loans and improvement in net interest margin, supported by growth in core deposit funding. Portfolio loans and core
deposits each grew by 6% in 2018. Net interest margin was up 21 basis points in the fourth quarter of 2018 compared to the fourth quarter of 2017. At the same time, asset quality remained strong with low levels of past due loans and
non-performing assets. While we did have net loan charge-offs in 2018 after five consecutive years of net loan recoveries, net charge-offs remained at low levels.”
Mr. Haan concluded, “Our focus on profitable growth continues to deliver strong and consistent financial performance for our shareholders. We remain
committed to operating a well-disciplined company in order to produce these kinds of results again in the upcoming year and beyond.”
Macatawa Bank Corporation 4Q Results / page 2 of 5
Operating Results
Net interest income for the fourth quarter 2018 totaled $15.6 million, an increase of $466,000 from the third quarter 2018 and an increase of $2.1 million from the fourth quarter 2017. Net
interest margin was 3.46 percent, up 9 basis
points from the third quarter 2018, and up 21 basis points from the fourth quarter 2017.
Average interest earning assets for the fourth quarter 2018 increased $6.6 million from the third quarter 2018 and were up $124.9 million from the fourth quarter 2017 primarily due
to growth in portfolio loans.
Non-interest income decreased $94,000 in the fourth quarter 2018 compared to the third
quarter 2018 and decreased $5,000 from the fourth quarter 2017. In the fourth quarter 2018, the Bank determined it would sell a property it had held for several years as a
potential branch location. The Bank recorded a valuation writedown on this property in the fourth quarter 2018, accounting for most of the decrease in non-interest income from the third quarter 2018 and the fourth quarter 2017. Gains on sales of
mortgage loans continued its downward trend as overall mortgage volume has been down in recent quarters, due primarily to increased market rates as well as a shortage in housing inventory. The Bank has also continued to experience a shift in more
origination volume being held in portfolio as customers choose adjustable rate mortgage loans versus longer term fixed rate products. The Bank holds adjustable rate mortgages in its porffolio and sells long-term fixed rate mortgages into the
secondary market in order to appropriately manage the Bank’s interest rate risk. Gains on sales of mortgage loans in the fourth quarter 2018 were up $21,000 compared to the third quarter 2018 and down $10,000 from the fourth quarter 2017. Other
categories of non-interest income in the fourth quarter 2018 were relatively flat compared to the third quarter 2018 and the fourth quarter 2017.
Non-interest expense was $10.4 million for the fourth quarter 2018, compared to $11.2 million for the third quarter 2018 and $11.3 million for the fourth
quarter 2017. The largest component of non-interest expense was salaries and benefit expenses. Salaries and benefit expenses were down $95,000 compared to the third quarter 2018 and were down $175,000 compared to the fourth quarter 2017. For the
full year 2018, salaries and benefits were up $404,000 compared to 2017. Total salaries and benefits expense has remained at a consistent level over the past several quarters and full years due to efforts to prudently manage overall cost levels.
The largest fluctuation between periods in non-interest expense was in nonperforming asset expenses. Net nonperforming asset expenses decreased $690,000
compared to the third quarter 2018 and decreased $787,000 compared to the fourth quarter 2017. During the fourth quarter 2018, the Bank sold a property it had obtained upon default of a loan for a gain of $675,000. This accounts for most of the
variance between quarterly periods. For the full year, net nonperforming asset expenses were just $69,000 in 2018, compared to $65,000 in 2017. Other categories of non-interest expense in the fourth quarter 2018 were relatively flat compared to
the third quarter 2018 and the fourth quarter 2017.
For the full year, total revenue, including both net interest income and non-interest income, grew by $7.8 million compared to 2017 while non-interest
expenses increased by $641,000.
Federal income tax expense was $1.7 million for the fourth quarter 2018 compared to $1.6 million for the third quarter 2018 and $4.5 million for the fourth
quarter 2017. Federal income tax expense for the fourth quarter 2017 included a $2.5 million expense to revalue the Company’s net deferred tax assets in response to the tax reform law enacted in December 2017.
Macatawa Bank Corporation 4Q Results / page 3 of 5
Asset Quality
Overall loan portfolio quality remained strong through 2018. A provision for loan losses of $850,000 was recorded in the fourth quarter 2018, primarily as a
result of net charge-offs of $776,000 for the quarter as well as loan portfolio growth. The Bank had net loan recoveries in the third quarter 2018 of $108,000 and net loan recoveries of $166,000 in the fourth quarter 2017. The Company has
experienced net loan recoveries in fifteen of the past sixteen quarters and in the five consecutive full years through December 31, 2017. While net recoveries changed to net charge-offs in 2018, the total for the whole year was $174,000, only 0.01
percent of total loans. Total loans past due on payments by 30 days or more were negligible and amounted to $877,000 at December 31, 2018, down 12 percent from $995,000 at December 31, 2017. Delinquency as a percentage of total loans was 0.06
percent at December 31, 2018, down from 0.08 percent at December 31, 2017.
The allowance for loan losses of $16.9 million was 1.20 percent of total loans at December 31, 2018, compared to 1.25 percent of total loans at September 30,
2018, and 1.26 percent at December 31, 2017. The coverage ratio of allowance for loan losses to nonperforming loans continued to be strong and significantly exceeded 1-to-1 coverage at 13-to-1 as of December 31, 2018.
At December 31, 2018, the Company's nonperforming loans were $1.3 million, representing 0.09
percent of total loans. This compares to $123,000 (0.01 percent of total loans) at September 30, 2018 and $395,000 (0.03 percent of total loans) at December 31, 2017. Other real estate owned and repossessed assets were $3.4 million at December
31, 2018, compared to $3.5 million at September 30, 2018 and $5.8 million at December 31, 2017. Total nonperforming assets, including other real estate owned and nonperforming loans, decreased by $1.5 million, or 24 percent, from December 31, 2017 to December 31, 2018.
A break-down of non-performing loans is shown in the table below.
|
Dollars in 000s
|
Dec 31,
2018
|
Sept 30,
2018
|
Jun 30,
2018
|
Mar 31,
2018
|
Dec 31,
2017
|
|||||||||||||||
|
Commercial Real Estate
|
$
|
318
|
$
|
121
|
$
|
121
|
$
|
121
|
$
|
385
|
||||||||||
|
Commercial and Industrial
|
873
|
---
|
2
|
201
|
4
|
|||||||||||||||
|
Total Commercial Loans
|
1,191
|
121
|
123
|
322
|
389
|
|||||||||||||||
|
Residential Mortgage Loans
|
112
|
2
|
2
|
2
|
2
|
|||||||||||||||
|
Consumer Loans
|
1
|
---
|
---
|
---
|
4
|
|||||||||||||||
|
Total Non-Performing Loans
|
$
|
1,304
|
$
|
123
|
$
|
125
|
$
|
324
|
$
|
395
|
||||||||||
Total non-performing assets were $4.7 million, or 0.24 percent of total assets, at December 31, 2018. A break-down of non-performing assets is shown in the
table below.
|
Dollars in 000s
|
Dec 31,
2018
|
Sept 30,
2018
|
Jun 30,
2018
|
Mar 31,
2018
|
Dec 31,
2017
|
|||||||||||||||
|
Non-Performing Loans
|
$
|
1,304
|
$
|
123
|
$
|
125
|
$
|
324
|
$
|
395
|
||||||||||
|
Other Repossessed Assets
|
---
|
---
|
---
|
---
|
11
|
|||||||||||||||
|
Other Real Estate Owned
|
3,380
|
3,465
|
3,872
|
5,223
|
5,767
|
|||||||||||||||
|
Total Non-Performing Assets
|
$
|
4,684
|
$
|
3,588
|
$
|
3,997
|
$
|
5,547
|
$
|
6,173
|
||||||||||
Macatawa Bank Corporation 4Q Results / page 4 of 5
Balance Sheet, Liquidity and Capital
Total assets were $1.98 billion at December 31, 2018, an increase of $55.9 million from $1.92 billion at September 30, 2018 and an increase of $84.9 million
from $1.89 billion at December 31, 2017. Total loans were $1.41 billion at December 31, 2018, an increase of $61.0 million from $1.34 billion at September 30, 2018 and an increase of $85.3 million from $1.32 billion at December 31, 2017.
Commercial loans increased by $74.9 million from December 31, 2017 to December 31, 2018, while residential mortgage loans increased by $13.7 million and
consumer loans decreased by $3.3 million. Commercial real estate loans increased by $26.8 million while commercial and industrial loans increased by $48.1 million during the same period.
The composition of the commercial loan portfolio is shown in the table below:
|
Dollars in 000s
|
Dec 31,
2018
|
Sept 30,
2018
|
Jun 30,
2018
|
Mar 31,
2018
|
Dec 31,
2017
|
|||||||||||||||
|
Construction and Development
|
$
|
99,867
|
$
|
93,794
|
$
|
85,193
|
$
|
81,948
|
$
|
92,241
|
||||||||||
|
Other Commercial Real Estate
|
468,840
|
459,146
|
461,808
|
447,922
|
449,694
|
|||||||||||||||
|
Commercial Loans Secured by Real Estate
|
568,707
|
552,940
|
547,001
|
529,870
|
541,935 | |||||||||||||||
|
Commercial and Industrial
|
513,347
|
467,703
|
458,468
|
477,088
|
465,208
|
|||||||||||||||
|
Total Commercial Loans
|
$
|
1,082,054
|
$
|
1,020,643
|
$
|
1,005,469
|
$
|
1,006,958
|
$
|
1,007,143
|
||||||||||
Total deposits were $1.68 billion at December 31, 2018, up $59.0 million from $1.62 billion at September 30, 2018 and were up $97.7 million, or 6 percent,
from $1.58 billion at December 31, 2017. The increase in total deposits from December 31, 2017 was across most deposit types. The increase in interest-bearing checking of $47.4 million was partially offset by a decrease of $5.1 million in
non-interest checking. The other categories of deposits each increased including money market deposits (up $19.6 million), savings (up $1.1 million) and certificates of deposit (up $34.7 million). The Bank continues to be successful at attracting
and retaining core deposit customers.
The Bank's risk-based regulatory capital ratios at December 31, 2018 decreased slightly compared to September 30, 2018 and were up compared to December 31,
2017 due to asset growth and earnings growth. All categories 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 December 31, 2018.
Macatawa Bank Corporation 4Q Results / page 5 of 5
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 “anticipates,” "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 future levels of earnings and profitability. 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, reduce future tax liabilities, 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, 2017. 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
|
|
Twelve Months Ended
December 31
|
||||||||||||||||||
|
4th Qtr
2018
|
3rd Qtr
2018
|
4th Qtr
2017
|
||||||||||||||||||
|
EARNINGS SUMMARY
|
2018
|
2017
|
||||||||||||||||||
|
Total interest income
|
$
|
18,496
|
$
|
17,687
|
$
|
15,159
|
$
|
69,037
|
$
|
57,676
|
||||||||||
|
Total interest expense
|
2,868
|
2,525
|
1,642
|
9,411
|
5,732
|
|||||||||||||||
|
Net interest income
|
15,628
|
15,162
|
13,517
|
59,626
|
51,944
|
|||||||||||||||
|
Provision for loan losses
|
850
|
-
|
-
|
450
|
(1,350
|
)
|
||||||||||||||
|
Net interest income after provision for loan losses
|
14,778
|
15,162
|
13,517
|
59,176
|
53,294
|
|||||||||||||||
|
NON-INTEREST INCOME
|
||||||||||||||||||||
|
Deposit service charges
|
1,135
|
1,132
|
1,125
|
4,377
|
4,466
|
|||||||||||||||
|
Net gains on mortgage loans
|
291
|
270
|
301
|
924
|
1,574
|
|||||||||||||||
|
Trust fees
|
884
|
889
|
866
|
3,643
|
3,277
|
|||||||||||||||
|
Other
|
2,095
|
2,208
|
2,118
|
8,559
|
8,102
|
|||||||||||||||
|
Total non-interest income
|
4,405
|
4,499
|
4,410
|
17,503
|
17,419
|
|||||||||||||||
|
NON-INTEREST EXPENSE
|
||||||||||||||||||||
|
Salaries and benefits
|
6,265
|
6,360
|
6,440
|
25,207
|
24,803
|
|||||||||||||||
|
Occupancy
|
948
|
939
|
926
|
3,931
|
3,864
|
|||||||||||||||
|
Furniture and equipment
|
787
|
760
|
772
|
3,125
|
3,050
|
|||||||||||||||
|
FDIC assessment
|
127
|
127
|
135
|
518
|
539
|
|||||||||||||||
|
Problem asset costs, including losses and (gains)
|
(582
|
)
|
108
|
205
|
69
|
65
|
||||||||||||||
|
Other
|
2,852
|
2,945
|
2,775
|
11,479
|
11,367
|
|||||||||||||||
|
Total non-interest expense
|
10,397
|
11,239
|
11,253
|
44,329
|
43,688
|
|||||||||||||||
|
Income before income tax
|
8,786
|
8,422
|
6,674
|
32,350
|
27,025
|
|||||||||||||||
|
Income tax expense
|
1,743
|
1,570
|
4,480
|
5,971
|
10,733
|
|||||||||||||||
|
Net income
|
$
|
7,043
|
$
|
6,852
|
$
|
2,194
|
$
|
26,379
|
$
|
16,292
|
||||||||||
|
Basic earnings per common share
|
$
|
0.21
|
$
|
0.20
|
$
|
0.06
|
$
|
0.78
|
$
|
0.48
|
||||||||||
|
Diluted earnings per common share
|
$
|
0.21
|
$
|
0.20
|
$
|
0.06
|
$
|
0.78
|
$
|
0.48
|
||||||||||
|
Return on average assets
|
1.47
|
%
|
1.43
|
%
|
0.49
|
%
|
1.40
|
%
|
0.93
|
%
|
||||||||||
|
Return on average equity
|
15.12
|
%
|
15.12
|
%
|
5.03
|
%
|
14.69
|
%
|
9.60
|
%
|
||||||||||
|
Net interest margin (fully taxable equivalent)
|
3.46
|
%
|
3.37
|
%
|
3.25
|
%
|
3.38
|
%
|
3.24
|
%
|
||||||||||
|
Efficiency ratio
|
51.90
|
%
|
57.16
|
%
|
62.77
|
%
|
57.47
|
%
|
62.98
|
%
|
||||||||||
|
BALANCE SHEET DATA
Assets
|
December 31
2018
|
September 30
2018
|
December 31
2017
|
|||||||||
|
Cash and due from banks
|
$
|
40,526
|
$
|
30,837
|
$
|
34,945
|
||||||
|
Federal funds sold and other short-term investments
|
130,758
|
152,339
|
126,522
|
|||||||||
|
Debt securities available for sale
|
226,986
|
218,615
|
219,250
|
|||||||||
|
Debt securities held to maturity
|
70,334
|
71,688
|
85,827
|
|||||||||
|
Federal Home Loan Bank Stock
|
11,558
|
11,558
|
11,558
|
|||||||||
|
Loans held for sale
|
415
|
-
|
1,208
|
|||||||||
|
Total loans
|
1,405,658
|
1,344,683
|
1,320,309
|
|||||||||
|
Less allowance for loan loss
|
16,876
|
16,803
|
16,600
|
|||||||||
|
Net loans
|
1,388,782
|
1,327,880
|
1,303,709
|
|||||||||
|
Premises and equipment, net
|
44,862
|
45,631
|
46,629
|
|||||||||
|
Bank-owned life insurance
|
41,185
|
40,996
|
40,243
|
|||||||||
|
Other real estate owned
|
3,380
|
3,465
|
5,767
|
|||||||||
|
Other assets
|
16,338
|
16,264
|
14,574
|
|||||||||
|
Total Assets
|
$
|
1,975,124
|
$
|
1,919,273
|
$
|
1,890,232
|
||||||
|
Liabilities and Shareholders' Equity
|
||||||||||||
|
Noninterest-bearing deposits
|
$
|
485,530
|
$
|
500,680
|
$
|
490,583
|
||||||
|
Interest-bearing deposits
|
1,191,209
|
1,117,063
|
1,088,427
|
|||||||||
|
Total deposits
|
1,676,739
|
1,617,743
|
1,579,010
|
|||||||||
|
Other borrowed funds
|
60,000
|
70,000
|
92,118
|
|||||||||
|
Long-term debt
|
41,238
|
41,238
|
41,238
|
|||||||||
|
Other liabilities
|
6,294
|
6,316
|
4,880
|
|||||||||
|
Total Liabilities
|
1,784,271
|
1,735,297
|
1,717,246
|
|||||||||
|
Shareholders' equity
|
190,853
|
183,976
|
172,986
|
|||||||||
|
Total Liabilities and Shareholders' Equity
|
$
|
1,975,124
|
$
|
1,919,273
|
$
|
1,890,232
|
||||||
MACATAWA BANK CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Unaudited)
(Dollars in thousands except per share information)
|
Quarterly
|
Year to Date
|
|||||||||||||||||||||||||||
|
4th Qtr
2018
|
3rd Qtr
2018
|
2nd Qtr
2018
|
1st Qtr
2018
|
4th Qtr
2017
|
2018
|
2017
|
||||||||||||||||||||||
|
EARNINGS SUMMARY
|
||||||||||||||||||||||||||||
|
Net interest income
|
$
|
15,628
|
$
|
15,162
|
$
|
14,653
|
$
|
14,182
|
$
|
13,517
|
$
|
59,626
|
$
|
51,944
|
||||||||||||||
|
Provision for loan losses
|
850
|
-
|
(300
|
)
|
(100
|
)
|
-
|
450
|
(1,350
|
)
|
||||||||||||||||||
|
Total non-interest income
|
4,405
|
4,499
|
4,468
|
4,132
|
4,410
|
17,503
|
17,419
|
|||||||||||||||||||||
|
Total non-interest expense
|
10,397
|
11,239
|
11,259
|
11,434
|
11,253
|
44,329
|
43,688
|
|||||||||||||||||||||
|
Federal income tax expense
|
1,743
|
1,570
|
1,434
|
1,225
|
4,480
|
5,971
|
10,733
|
|||||||||||||||||||||
|
Net income
|
$
|
7,043
|
$
|
6,852
|
$
|
6,728
|
$
|
5,755
|
$
|
2,194
|
$
|
26,379
|
$
|
16,292
|
||||||||||||||
|
Basic earnings per common share
|
$
|
0.21
|
$
|
0.20
|
$
|
0.20
|
$
|
0.17
|
$
|
0.06
|
$
|
0.78
|
$
|
0.48
|
||||||||||||||
|
Diluted earnings per common share
|
$
|
0.21
|
$
|
0.20
|
$
|
0.20
|
$
|
0.17
|
$
|
0.06
|
$
|
0.78
|
$
|
0.48
|
||||||||||||||
|
MARKET DATA
|
||||||||||||||||||||||||||||
|
Book value per common share
|
$
|
5.61
|
$
|
5.41
|
$
|
5.28
|
$
|
5.16
|
$
|
5.10
|
$
|
5.61
|
$
|
5.10
|
||||||||||||||
|
Tangible book value per common share
|
$
|
5.61
|
$
|
5.41
|
$
|
5.28
|
$
|
5.16
|
$
|
5.10
|
$
|
5.61
|
$
|
5.10
|
||||||||||||||
|
Market value per common share
|
$
|
9.62
|
$
|
11.71
|
$
|
12.14
|
$
|
10.27
|
$
|
10.00
|
$
|
9.62
|
$
|
10.00
|
||||||||||||||
|
Average basic common shares
|
34,031,454
|
34,014,319
|
34,016,679
|
34,010,396
|
33,958,992
|
34,018,259
|
33,946,520
|
|||||||||||||||||||||
|
Average diluted common shares
|
34,031,454
|
34,014,319
|
34,016,679
|
34,011,592
|
33,965,344
|
34,018,554
|
33,952,872
|
|||||||||||||||||||||
|
Period end common shares
|
34,045,411
|
34,014,319
|
34,014,319
|
34,017,525
|
33,972,977
|
34,045,411
|
33,972,977
|
|||||||||||||||||||||
|
PERFORMANCE RATIOS
|
||||||||||||||||||||||||||||
|
Return on average assets
|
1.47
|
%
|
1.43
|
%
|
1.44
|
%
|
1.25
|
%
|
0.49
|
%
|
1.40
|
%
|
0.93
|
%
|
||||||||||||||
|
Return on average equity
|
15.12
|
%
|
15.12
|
%
|
15.23
|
%
|
13.24
|
%
|
5.03
|
%
|
14.69
|
%
|
9.60
|
%
|
||||||||||||||
|
Net interest margin (fully taxable equivalent)
|
3.46
|
%
|
3.37
|
%
|
3.37
|
%
|
3.34
|
%
|
3.25
|
%
|
3.38
|
%
|
3.24
|
%
|
||||||||||||||
|
Efficiency ratio
|
51.90
|
%
|
57.16
|
%
|
58.88
|
%
|
62.43
|
%
|
62.77
|
%
|
57.47
|
%
|
62.98
|
%
|
||||||||||||||
|
Full-time equivalent employees (period end)
|
334
|
332
|
339
|
332
|
340
|
334
|
340
|
|||||||||||||||||||||
|
ASSET QUALITY
|
||||||||||||||||||||||||||||
|
Gross charge-offs
|
$
|
1,179
|
$
|
30
|
$
|
30
|
$
|
97
|
$
|
45
|
$
|
1,335
|
$
|
266
|
||||||||||||||
|
Net charge-offs/(recoveries)
|
$
|
776
|
$
|
(108
|
)
|
$
|
(320
|
)
|
$
|
(175
|
)
|
$
|
(166
|
)
|
$
|
174
|
$
|
(988
|
)
|
|||||||||
|
Net charge-offs to average loans (annualized)
|
0.23
|
%
|
-0.03
|
%
|
-0.10
|
%
|
-0.05
|
%
|
-0.05
|
%
|
0.01
|
%
|
-0.08
|
%
|
||||||||||||||
|
Nonperforming loans
|
$
|
1,304
|
$
|
123
|
$
|
125
|
$
|
324
|
$
|
395
|
$
|
1,304
|
$
|
395
|
||||||||||||||
|
Other real estate and repossessed assets
|
$
|
3,380
|
$
|
3,465
|
$
|
3,872
|
$
|
5,223
|
$
|
5,778
|
$
|
3,380
|
$
|
5,778
|
||||||||||||||
|
Nonperforming loans to total loans
|
0.09
|
%
|
0.01
|
%
|
0.01
|
%
|
0.02
|
%
|
0.03
|
%
|
0.09
|
%
|
0.03
|
%
|
||||||||||||||
|
Nonperforming assets to total assets
|
0.24
|
%
|
0.19
|
%
|
0.21
|
%
|
0.30
|
%
|
0.33
|
%
|
0.24
|
%
|
0.33
|
%
|
||||||||||||||
|
Allowance for loan losses
|
$
|
16,876
|
$
|
16,803
|
$
|
16,695
|
$
|
16,675
|
$
|
16,600
|
$
|
16,876
|
$
|
16,600
|
||||||||||||||
|
Allowance for loan losses to total loans
|
1.20
|
%
|
1.25
|
%
|
1.26
|
%
|
1.26
|
%
|
1.26
|
%
|
1.20
|
%
|
1.26
|
%
|
||||||||||||||
|
Allowance for loan losses to nonperforming loans
|
1293.18
|
%
|
13660.98
|
%
|
13356.00
|
%
|
5146.60
|
%
|
4202.53
|
%
|
1293.18
|
%
|
4202.53
|
%
|
||||||||||||||
|
CAPITAL
|
||||||||||||||||||||||||||||
|
Average equity to average assets
|
9.71
|
%
|
9.47
|
%
|
9.44
|
%
|
9.42
|
%
|
9.68
|
%
|
9.51
|
%
|
9.68
|
%
|
||||||||||||||
|
Common equity tier 1 to risk weighted assets (Consolidated)
|
12.01
|
%
|
12.13
|
%
|
11.83
|
%
|
11.67
|
%
|
11.31
|
%
|
12.01
|
%
|
11.31
|
%
|
||||||||||||||
|
Tier 1 capital to average assets (Consolidated)
|
12.12
|
%
|
11.90
|
%
|
11.91
|
%
|
11.83
|
%
|
11.88
|
%
|
12.12
|
%
|
11.88
|
%
|
||||||||||||||
|
Total capital to risk-weighted assets (Consolidated)
|
15.54
|
%
|
15.79
|
%
|
15.49
|
%
|
15.36
|
%
|
14.99
|
%
|
15.54
|
%
|
14.99
|
%
|
||||||||||||||
|
Common equity tier 1 to risk weighted assets (Bank)
|
14.09
|
%
|
14.28
|
%
|
14.01
|
%
|
13.87
|
%
|
13.54
|
%
|
14.09
|
%
|
13.54
|
%
|
||||||||||||||
|
Tier 1 capital to average assets (Bank)
|
11.78
|
%
|
11.56
|
%
|
11.58
|
%
|
11.50
|
%
|
11.56
|
%
|
11.78
|
%
|
11.56
|
%
|
||||||||||||||
|
Total capital to risk-weighted assets (Bank)
|
15.13
|
%
|
15.36
|
%
|
15.09
|
%
|
14.96
|
%
|
14.62
|
%
|
15.13
|
%
|
14.62
|
%
|
||||||||||||||
|
Tangible common equity to assets
|
9.67
|
%
|
9.59
|
%
|
9.60
|
%
|
9.42
|
%
|
9.15
|
%
|
9.67
|
%
|
9.15
|
%
|
||||||||||||||
|
END OF PERIOD BALANCES
|
||||||||||||||||||||||||||||
|
Total portfolio loans
|
$
|
1,405,658
|
$
|
1,344,683
|
$
|
1,327,686
|
$
|
1,325,545
|
$
|
1,320,309
|
$
|
1,405,658
|
$
|
1,320,309
|
||||||||||||||
|
Earning assets
|
1,849,630
|
1,804,672
|
1,751,167
|
1,751,315
|
1,767,752
|
1,849,630
|
1,767,752
|
|||||||||||||||||||||
|
Total assets
|
1,975,124
|
1,919,273
|
1,872,541
|
1,863,780
|
1,890,232
|
1,975,124
|
1,890,232
|
|||||||||||||||||||||
|
Deposits
|
1,676,739
|
1,617,743
|
1,580,461
|
1,560,872
|
1,579,010
|
1,676,739
|
1,579,010
|
|||||||||||||||||||||
|
Total shareholders' equity
|
190,853
|
183,976
|
179,714
|
175,376
|
172,986
|
190,853
|
172,986
|
|||||||||||||||||||||
|
AVERAGE BALANCES
|
||||||||||||||||||||||||||||
|
Total portfolio loans
|
$
|
1,363,548
|
$
|
1,325,268
|
$
|
1,327,408
|
$
|
1,314,838
|
$
|
1,285,688
|
$
|
1,332,878
|
$
|
1,265,682
|
||||||||||||||
|
Earning assets
|
1,806,229
|
1,799,600
|
1,756,909
|
1,730,576
|
1,681,297
|
1,773,608
|
1,627,330
|
|||||||||||||||||||||
|
Total assets
|
1,918,543
|
1,915,655
|
1,872,559
|
1,845,911
|
1,802,386
|
1,888,441
|
1,752,303
|
|||||||||||||||||||||
|
Deposits
|
1,618,861
|
1,614,151
|
1,575,408
|
1,537,376
|
1,497,213
|
1,586,748
|
1,449,393
|
|||||||||||||||||||||
|
Total shareholders' equity
|
186,361
|
181,329
|
176,749
|
173,913
|
174,427
|
179,627
|
169,776
|
|||||||||||||||||||||