Exhibit 99.1
|
For Immediate Release
|
|
|
NASDAQ Stock Market:
|
MCBC
|
Macatawa Bank Corporation Reports
Second Quarter 2019 Results
HOLLAND, Mich. (July 25, 2019) – Macatawa Bank Corporation (NASDAQ: MCBC) today announced its results for the second quarter of 2019, reflecting continued strong
financial performance.
| • |
Net income of $8.0 million in second quarter 2019 versus $6.7 million in second quarter 2018 – up 19%
|
| • |
Growth in revenue (up 10%) over second quarter of 2018 while expenses were stable (up less than 1%)
|
| • |
Strong profitability with return on assets and equity of 1.62% and 15.94%, respectively, in second quarter of 2019
|
| • |
Seasonal decline in loan portfolio balances during the quarter
|
| • |
Growth in core deposit balances during the quarter of $43.2 million and up 5% from June 30, 2018
|
| • |
Asset quality metrics remained strong
|
Macatawa reported net income of $8.0 million, or $0.24 per diluted share, in the second quarter 2019 compared to $6.7 million, or $0.20 per diluted share, in the second quarter 2018. For the first six
months of 2019, Macatawa reported net income of $15.6 million, or $0.46 per diluted share, compared to $12.5 million, or $0.37 per diluted share, for the same
period in 2018. Macatawa’s 2019 earnings were positively impacted by improving revenues with nominal increases in non-interest expenses.
"Macatawa Bank Corporation continued its strong performance in the second quarter of 2019,” said Ronald L. Haan, President and CEO of the Company. “Revenue growth, primarily higher net interest income, increased non-interest revenue and
continued expense management resulted in a 19 percent increase in net income compared to the second quarter of 2018. Continued growth in our balances of interest-earning assets has positively affected
our net interest income while our core operating expenses remained well-controlled during the quarter.”
Mr. Haan concluded: "In the first half of 2019 our efforts have again resulted in strong and consistent financial performance for our shareholders. The banking environment in Western Michigan remains highly competitive, yet with the focus of
our strong and committed team of professional bankers, we believe that Macatawa Bank Corporation remains well-positioned for continued growth and success in the second half of 2019.”
Macatawa Bank Corporation 2Q Results / page 2 of 5
Operating Results
Net interest income for the second quarter 2019 totaled $16.0 million, a decrease of $65,000 from the first quarter 2019 and an increase of $1.3 million from the second quarter 2018. Net interest margin was 3.45 percent, down 9 basis points from the first quarter 2019, and up 8 basis points from the second quarter
2018. Net interest income for the first quarter 2019 benefitted from the collection of $251,000 in prepayment fees on commercial loans, primarily related to one commercial relationship. Prepayment fees were only $6,000 in the second quarter 2019
and $32,000 in the second quarter 2018.
Average interest earning assets for the second quarter 2019 increased $26.4 million from the first quarter 2019 and were up $103.4
million from the second quarter 2018. This growth along with increases in yields on interest earning assets were the primary contributors to the improvement in net interest income.
Non-interest income increased $770,000 in the second quarter 2019 compared to the first quarter 2019 and increased $630,000 from the second quarter 2018.
These changes were largely due to fluctuations in gains on sales of mortgage loans. Gains on sales of mortgage loans in the second quarter 2019 were up $403,000 compared to the first quarter 2019 and were
up $392,000 from the second quarter 2018. The Bank originated $21.4 million in mortgage loans for sale in the second quarter 2019 compared to $6.8 million in the first
quarter 2019 and $8.4 million in the second quarter 2018. This increase in production is due to a declining mortgage rate environment as well as customer preference for loan types that are typically sold (long-term fixed rate loans). This
resulted in a reduction in the volume of loans originated for portfolio compared to 2018. The Bank originated $8.8 million in portfolio mortgage loans in the second quarter 2019 compared to $6.8
million in the first quarter 2019 and $18.8 million in the second quarter 2018. Also positively impacting non-interest income in the second quarter 2019 were increases in trust fee income and debit card
interchange income.
Non-interest expense was $11.3 million for the second quarter 2019, compared to $11.2 million for the first quarter 2019 and $11.3 million for the second quarter 2018. The largest component of non-interest expense was
salaries and benefit expenses. Salaries and benefit expenses were up $135,000 compared to the first quarter 2019 and were down $10,000 compared to the second quarter 2018. The increase compared to the first quarter 2019 was largely due to higher
variable based compensation from mortgage production volume. The decrease from the second quarter 2018 was attributed to decreases in medical insurance costs due to lower claims experience in 2019.
Nonperforming asset expenses decreased $38,000 in the second quarter 2019 compared to the first quarter 2019 and decreased $68,000 compared to the second quarter 2018. Net gains of $34,000 were realized on sales of
foreclosed properties in the second quarter 2019, while there were net gains of $45,000 in the first quarter 2019 and net losses of $6,000 in the second quarter 2018. Other categories of non-interest expense were relatively stable compared to the
first quarter 2019 and the second quarter 2018.
Federal income tax expense was $1.9 million for the second quarter 2019 compared to $1.7 million for the first quarter 2019 and $1.4 million for the second quarter 2018. The effective tax rate was 19.3 percent for the
second quarter 2019, compared to 18.3 percent for the first quarter 2019 and 17.6 percent for the second quarter 2018.
Macatawa Bank Corporation 2Q Results / page 3 of 5
Asset Quality
The Bank’s asset quality remained strong in the second quarter 2019 and again experienced net loan recoveries in the second quarter. A negative provision for loan losses of $200,000 was recorded in the second quarter
2019, compared to a negative provision of $250,000 in the first quarter 2019 and a negative provision of $300,000 in the second quarter 2018. Net loan recoveries for the second quarter 2019 were $194,000, compared to first quarter 2019 net loan
recoveries of $266,000 and second quarter 2018 net loan recoveries of $320,000. The Company has experienced net loan recoveries in seventeen of the past eighteen quarters. Total loans past due on payments by 30 days or more amounted to $360,000 at
June 30, 2019, down 47 percent from $674,000 at March 31, 2019 and down 31 percent from $525,000 at June 30, 2018. Delinquency as a percentage of total loans was a nominal 0.03 percent at June 30, 2019.
The allowance for loan losses of $16.9 million was 1.26 percent of total loans at June 30, 2019, compared to 1.22 percent of total loans at March 31, 2019, and 1.26 percent at June 30, 2018. The coverage ratio of
allowance for loan losses to nonperforming loans continued to be strong and significantly exceeded 1-to-1 coverage at 58-to-1 as of June 30, 2019.
At June 30, 2019, the Company's nonperforming loans were $293,000, representing 0.02 percent of total loans. This compares to $409,000 (0.03 percent of total loans) at March 31, 2019 and $125,000 (0.01 percent of
total loans) at June 30, 2018. Other real estate owned and repossessed assets were $3.1 million at June 30, 2019, compared to $3.3 million at March 31, 2019 and $3.9 million at June 30, 2018. Total nonperforming assets, including other
real estate owned and nonperforming loans, decreased by $637,000, or 16 percent, from June 30, 2018 to June 30, 2019.
A break-down of non-performing loans is shown in the table below.
|
Dollars in 000s
|
Jun 30,
2019
|
Mar 31,
2019
|
Dec 31,
2018
|
Sept 30,
2018
|
Jun 30,
2018
|
|||||||||||||||
|
Commercial Real Estate
|
$
|
102
|
$
|
213
|
$
|
318
|
$
|
121
|
$
|
121
|
||||||||||
|
Commercial and Industrial
|
---
|
---
|
873
|
---
|
2
|
|||||||||||||||
|
Total Commercial Loans
|
102
|
213
|
1,191
|
121
|
123
|
|||||||||||||||
|
Residential Mortgage Loans
|
191
|
195
|
112
|
2
|
2
|
|||||||||||||||
|
Consumer Loans
|
---
|
1
|
1
|
---
|
---
|
|||||||||||||||
|
Total Non-Performing Loans
|
$
|
293
|
$
|
409
|
$
|
1,304
|
$
|
123
|
$
|
125
|
||||||||||
Macatawa Bank Corporation 2Q Results / page 4 of 5
Total non-performing assets were $3.4 million, or 0.17 percent of total assets, at June 30, 2019. A break-down of non-performing assets is shown in the table below.
|
Dollars in 000s
|
Jun 30,
2019
|
Mar 31,
2019
|
Dec 31,
2018
|
Sept 30,
2018
|
Jun 30,
2018
|
|||||||||||||||
|
Non-Performing Loans
|
$
|
293
|
$
|
409
|
$
|
1,304
|
$
|
123
|
$
|
125
|
||||||||||
|
Other Repossessed Assets
|
---
|
---
|
---
|
---
|
---
|
|||||||||||||||
|
Other Real Estate Owned
|
3,067
|
3,261
|
3,380
|
3,465
|
3,872
|
|||||||||||||||
|
Total Non-Performing Assets
|
$
|
3,360
|
$
|
3,670
|
$
|
4,684
|
$
|
3,588
|
$
|
3,997
|
||||||||||
Balance Sheet, Liquidity and Capital
Total assets were $1.98 billion at June 30, 2019, an increase of $52.5 million from $1.93 billion at March 31, 2019 and an increase of $105.9 million from $1.87 billion at June 30, 2018. Total loans were $1.34 billion at
June 30, 2019, a decrease of $41.1 million from $1.38 billion at March 31, 2019 and an increase of $15.8 million from $1.33 billion at June 30, 2018.
Commercial loans increased by $25.7 million from June 30, 2018 to June 30, 2019, partially offset by decreases of $5.4 million in the residential mortgage portfolio and $4.5 million in the consumer loan portfolio.
Commercial real estate loans increased by $16.9 million while commercial and industrial loans increased by $8.8 million during the same period.
The composition of the commercial loan portfolio is shown in the table below:
|
Dollars in 000s
|
Jun 30,
2019
|
Mar 31,
2019
|
Dec 31,
2018
|
Sept 30,
2018
|
Jun 30,
2018
|
|||||||||||||||
|
Construction and Development
|
$
|
102,516
|
$
|
102,133
|
$
|
99,867
|
$
|
93,794
|
$
|
85,193
|
||||||||||
|
Other Commercial Real Estate
|
461,427
|
470,667
|
468,840
|
459,146
|
461,808
|
|||||||||||||||
|
Commercial Loans Secured by Real Estate
|
563,943
|
572,800
|
568,707
|
552,940
|
547,001
|
|||||||||||||||
|
Commercial and Industrial
|
467,222
|
493,891
|
513,347
|
467,703
|
458,468
|
|||||||||||||||
|
Total Commercial Loans
|
$
|
1,031,165
|
$
|
1,066,691
|
$
|
1,082,054
|
$
|
1,020,643
|
$
|
1,005,469
|
||||||||||
The commercial and industrial portfolio is subject to seasonal fluctuations as the Company typically experiences large paydowns on agricultural credits and loans to automobile, recreational vehicle and boat dealers in the first half of each
year. The seasonal paydowns in these loan categories amounted to $38.4 million in the second quarter of 2019. In addition there were two relationships totaling $7.9 million that paid-off during the second quarter of 2019 resulting from the sale of
their businesses.
Total deposits were $1.66 billion at June 30, 2019, up $43.2 million from $1.62 billion at March 31, 2019 and up $80.6 million, or 5 percent, from $1.58 billion at June 30, 2018. Demand deposits were up $26.6 million in
the second quarter 2019 compared to the first quarter 2019 and were up $7.0 million compared to the second quarter 2018. Money market deposits and savings deposits were up $10.7 million from the first quarter 2019 and were up $31.5 million from
the second quarter 2018. Certificates of deposit were up $5.9 million in the second quarter 2019 compared to March 31, 2019 and were up $42.1 million compared to June 30, 2018. As deposit rates have risen, the Bank has experienced some shifting
between deposit types, particularly certificates of deposit. 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 2Q Results / page 5 of 5
The Bank's risk-based regulatory capital ratios were higher at June 30, 2019 compared to March 31, 2019 and December 31, 2018 due to earnings growth, and continued 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 June 30, 2019.
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 nine consecutive years as one of “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 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, 2018. 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
|
Six Months Ended
June 30
|
||||||||||||||||||
|
EARNINGS SUMMARY
|
2nd Qtr
2019
|
1st Qtr
2019
|
2nd Qtr
2018
|
2019
|
2018
|
|||||||||||||||
|
Total interest income
|
$
|
19,239
|
$
|
19,189
|
$
|
16,836
|
$
|
38,429
|
$
|
|
32,855 | |||||||||
|
Total interest expense
|
3,284
|
3,169
|
2,183
|
6,453
|
4,019
|
|||||||||||||||
|
Net interest income
|
15,955
|
16,020
|
14,653
|
31,976
|
28,836
|
|||||||||||||||
|
Provision for loan losses
|
(200
|
)
|
(250
|
)
|
(300
|
)
|
(450
|
)
|
(400
|
)
|
||||||||||
|
Net interest income after provision for loan losses
|
16,155
|
16,270
|
14,953
|
32,426
|
29,236
|
|||||||||||||||
|
NON-INTEREST INCOME
|
||||||||||||||||||||
|
Deposit service charges
|
1,078
|
1,050
|
1,060
|
2,128
|
2,110
|
|||||||||||||||
|
Net gains on mortgage loans
|
614
|
211
|
222
|
825
|
363
|
|||||||||||||||
|
Trust fees
|
1,003
|
890
|
945
|
1,893
|
1,870
|
|||||||||||||||
|
Other
|
2,403
|
2,177
|
2,241
|
4,580
|
4,256
|
|||||||||||||||
|
Total non-interest income
|
5,098
|
4,328
|
4,468
|
9,426
|
8,599
|
|||||||||||||||
|
NON-INTEREST EXPENSE
|
||||||||||||||||||||
|
Salaries and benefits
|
6,379
|
6,244
|
6,389
|
12,623
|
12,583
|
|||||||||||||||
|
Occupancy
|
996
|
1,093
|
973
|
2,089
|
2,045
|
|||||||||||||||
|
Furniture and equipment
|
866
|
844
|
773
|
1,710
|
1,578
|
|||||||||||||||
|
FDIC assessment
|
119
|
120
|
132
|
239
|
264
|
|||||||||||||||
|
Problem asset costs, including losses and (gains)
|
15
|
53
|
83
|
68
|
544
|
|||||||||||||||
|
Other
|
2,959
|
2,884
|
2,909
|
5,844
|
5,679
|
|||||||||||||||
|
Total non-interest expense
|
11,334
|
11,238
|
11,259
|
22,573
|
22,693
|
|||||||||||||||
|
Income before income tax
|
9,919
|
9,360
|
8,162
|
19,279
|
15,142
|
|||||||||||||||
|
Income tax expense
|
1,916
|
1,714
|
1,434
|
3,630
|
2,659
|
|||||||||||||||
|
Net income
|
$
|
8,003
|
$
|
7,646
|
$
|
6,728
|
$
|
15,649
|
$
|
12,483
|
||||||||||
|
Basic earnings per common share
|
$
|
0.24
|
$
|
0.22
|
$
|
0.20
|
$
|
0.46
|
$
|
0.37
|
||||||||||
|
Diluted earnings per common share
|
$
|
0.24
|
$
|
0.22
|
$
|
0.20
|
$
|
0.46
|
$
|
0.37
|
||||||||||
|
Return on average assets
|
1.62
|
%
|
1.57
|
%
|
1.44
|
%
|
1.59
|
%
|
1.34
|
%
|
||||||||||
|
Return on average equity
|
15.94
|
%
|
15.81
|
%
|
15.23
|
%
|
15.87
|
%
|
14.24
|
%
|
||||||||||
|
Net interest margin (fully taxable equivalent)
|
3.45
|
%
|
3.54
|
%
|
3.37
|
%
|
3.50
|
%
|
3.35
|
%
|
||||||||||
|
Efficiency ratio
|
53.84
|
%
|
55.23
|
%
|
58.88
|
%
|
54.52
|
%
|
60.62
|
%
|
||||||||||
|
BALANCE SHEET DATA
Assets
|
June 30
2019
|
March 31
2019
|
June 30
2018
|
|||||||||
|
Cash and due from banks
|
$
|
30,943
|
$
|
28,143
|
$
|
37,105
|
||||||
|
Federal funds sold and other short-term investments
|
199,940
|
115,843
|
107,416
|
|||||||||
|
Debt securities available for sale
|
222,825
|
224,645
|
218,770
|
|||||||||
|
Debt securities held to maturity
|
79,054
|
70,336
|
79,569
|
|||||||||
|
Federal Home Loan Bank Stock
|
11,558
|
11,558
|
11,558
|
|||||||||
|
Loans held for sale
|
1,016
|
512
|
61
|
|||||||||
|
Total loans
|
1,343,512
|
1,384,567
|
1,327,686
|
|||||||||
|
Less allowance for loan loss
|
16,886
|
16,892
|
16,695
|
|||||||||
|
Net loans
|
1,326,626
|
1,367,675
|
1,310,991
|
|||||||||
|
Premises and equipment, net
|
44,424
|
44,805
|
45,907
|
|||||||||
|
Bank-owned life insurance
|
41,695
|
41,433
|
40,744
|
|||||||||
|
Other real estate owned
|
3,067
|
3,261
|
3,872
|
|||||||||
|
Other assets
|
17,257
|
17,669
|
16,548
|
|||||||||
|
Total Assets
|
$
|
1,978,405
|
$
|
1,925,880
|
$
|
1,872,541
|
||||||
|
Liabilities and Shareholders' Equity
|
||||||||||||
|
Noninterest-bearing deposits
|
$
|
476,700
|
$
|
466,631
|
$
|
496,605
|
||||||
|
Interest-bearing deposits
|
1,184,406
|
1,151,233
|
1,083,856
|
|||||||||
|
Total deposits
|
1,661,106
|
1,617,864
|
1,580,461
|
|||||||||
|
Other borrowed funds
|
60,000
|
60,000
|
65,667
|
|||||||||
|
Long-term debt
|
41,238
|
41,238
|
41,238
|
|||||||||
|
Other liabilities
|
10,542
|
8,812
|
5,461
|
|||||||||
|
Total Liabilities
|
1,772,886
|
1,727,914
|
1,692,827
|
|||||||||
|
Shareholders' equity
|
205,519
|
197,966
|
179,714
|
|||||||||
|
Total Liabilities and Shareholders' Equity
|
$
|
1,978,405
|
$
|
1,925,880
|
$
|
1,872,541
|
||||||
MACATAWA BANK CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Unaudited)
(Dollars in thousands except per share information)
|
Quarterly
|
Year to Date
|
|||||||||||||||||||||||||||
|
2nd Qtr
2019
|
1st Qtr
2019
|
4th Qtr
2018
|
3rd Qtr
2018
|
2nd Qtr
2018
|
2019
|
2018
|
||||||||||||||||||||||
|
EARNINGS SUMMARY
|
||||||||||||||||||||||||||||
|
Net interest income
|
$
|
15,955
|
$
|
16,020
|
$
|
15,628
|
$
|
15,162
|
$
|
14,653
|
$
|
31,976
|
$
|
28,836
|
||||||||||||||
|
Provision for loan losses
|
(200
|
)
|
(250
|
)
|
850
|
-
|
(300
|
)
|
(450
|
)
|
(400
|
)
|
||||||||||||||||
|
Total non-interest income
|
5,098
|
4,328
|
4,405
|
4,499
|
4,468
|
9,426
|
8,599
|
|||||||||||||||||||||
|
Total non-interest expense
|
11,334
|
11,238
|
10,397
|
11,239
|
11,259
|
22,573
|
22,693
|
|||||||||||||||||||||
|
Federal income tax expense
|
1,916
|
1,714
|
1,743
|
1,570
|
1,434
|
3,630
|
2,659
|
|||||||||||||||||||||
|
Net income
|
$
|
8,003
|
$
|
7,646
|
$
|
7,043
|
$
|
6,852
|
$
|
6,728
|
$
|
15,649
|
$
|
12,483
|
||||||||||||||
|
Basic earnings per common share
|
$
|
0.24
|
$
|
0.22
|
$
|
0.21
|
$
|
0.20
|
$
|
0.20
|
$
|
0.46
|
$
|
0.37
|
||||||||||||||
|
Diluted earnings per common share
|
$
|
0.24
|
$
|
0.22
|
$
|
0.21
|
$
|
0.20
|
$
|
0.20
|
$
|
0.46
|
$
|
0.37
|
||||||||||||||
|
MARKET DATA
|
||||||||||||||||||||||||||||
|
Book value per common share
|
$
|
6.04
|
$
|
5.81
|
$
|
5.61
|
$
|
5.41
|
$
|
5.28
|
$
|
6.04
|
$
|
5.28
|
||||||||||||||
|
Tangible book value per common share
|
$
|
6.04
|
$
|
5.81
|
$
|
5.61
|
$
|
5.41
|
$
|
5.28
|
$
|
6.04
|
$
|
5.28
|
||||||||||||||
|
Market value per common share
|
$
|
10.26
|
$
|
9.94
|
$
|
9.62
|
$
|
11.71
|
$
|
12.14
|
$
|
10.26
|
$
|
12.14
|
||||||||||||||
|
Average basic common shares
|
34,042,886
|
34,040,380
|
34,031,454
|
34,014,319
|
34,016,679
|
34,041,628
|
34,013,555
|
|||||||||||||||||||||
|
Average diluted common shares
|
34,042,886
|
34,040,380
|
34,031,454
|
34,014,319
|
34,016,679
|
34,041,628
|
34,014,152
|
|||||||||||||||||||||
|
Period end common shares
|
34,042,331
|
34,044,149
|
34,045,411
|
34,014,319
|
34,014,319
|
34,042,331
|
34,014,319
|
|||||||||||||||||||||
|
PERFORMANCE RATIOS
|
||||||||||||||||||||||||||||
|
Return on average assets
|
1.62
|
%
|
1.57
|
%
|
1.47
|
%
|
1.43
|
%
|
1.44
|
%
|
1.59
|
%
|
1.34
|
%
|
||||||||||||||
|
Return on average equity
|
15.94
|
%
|
15.81
|
%
|
15.12
|
%
|
15.12
|
%
|
15.23
|
%
|
15.87
|
%
|
14.24
|
%
|
||||||||||||||
|
Net interest margin (fully taxable equivalent)
|
3.45
|
%
|
3.54
|
%
|
3.46
|
%
|
3.37
|
%
|
3.37
|
%
|
3.50
|
%
|
3.35
|
%
|
||||||||||||||
|
Efficiency ratio
|
53.84
|
%
|
55.23
|
%
|
51.90
|
%
|
57.16
|
%
|
58.88
|
%
|
54.52
|
%
|
60.62
|
%
|
||||||||||||||
|
Full-time equivalent employees (period end)
|
338
|
332
|
334
|
332
|
339
|
338
|
339
|
|||||||||||||||||||||
|
ASSET QUALITY
|
||||||||||||||||||||||||||||
|
Gross charge-offs
|
$
|
41
|
$
|
157
|
$
|
1,179
|
$
|
30
|
$
|
30
|
$
|
198
|
$
|
126
|
||||||||||||||
|
Net charge-offs/(recoveries)
|
$
|
(194
|
)
|
$
|
(266
|
)
|
$
|
776
|
$
|
(108
|
)
|
$
|
(320
|
)
|
$
|
(460
|
)
|
$
|
(495
|
)
|
||||||||
|
Net charge-offs to average loans (annualized)
|
-0.06
|
%
|
-0.08
|
%
|
0.23
|
%
|
-0.03
|
%
|
-0.10
|
%
|
-0.07
|
%
|
-0.07
|
%
|
||||||||||||||
|
Nonperforming loans
|
$
|
293
|
$
|
409
|
$
|
1,304
|
$
|
123
|
$
|
125
|
$
|
293
|
$
|
125
|
||||||||||||||
|
Other real estate and repossessed assets
|
$
|
3,067
|
$
|
3,261
|
$
|
3,380
|
$
|
3,465
|
$
|
3,872
|
$
|
3,067
|
$
|
3,872
|
||||||||||||||
|
Nonperforming loans to total loans
|
0.02
|
%
|
0.03
|
%
|
0.09
|
%
|
0.01
|
%
|
0.01
|
%
|
0.02
|
%
|
0.01
|
%
|
||||||||||||||
|
Nonperforming assets to total assets
|
0.17
|
%
|
0.19
|
%
|
0.24
|
%
|
0.19
|
%
|
0.21
|
%
|
0.17
|
%
|
0.21
|
%
|
||||||||||||||
|
Allowance for loan losses
|
$
|
16,886
|
$
|
16,892
|
$
|
16,876
|
$
|
16,803
|
$
|
16,695
|
$
|
16,886
|
$
|
16,695
|
||||||||||||||
|
Allowance for loan losses to total loans
|
1.26
|
%
|
1.22
|
%
|
1.20
|
%
|
1.25
|
%
|
1.26
|
%
|
1.26
|
%
|
1.26
|
%
|
||||||||||||||
|
Allowance for loan losses to nonperforming loans
|
5763.14
|
%
|
4130.07
|
%
|
1293.18
|
%
|
13660.98
|
%
|
13356.00
|
%
|
5763.14
|
%
|
13356.00
|
%
|
||||||||||||||
|
CAPITAL
|
||||||||||||||||||||||||||||
|
Average equity to average assets
|
10.15
|
%
|
9.93
|
%
|
9.71
|
%
|
9.47
|
%
|
9.44
|
%
|
10.04
|
%
|
9.43
|
%
|
||||||||||||||
|
Common equity tier 1 to risk weighted assets (Consolidated)
|
13.13
|
%
|
12.55
|
%
|
12.01
|
%
|
12.13
|
%
|
11.83
|
%
|
13.13
|
%
|
11.83
|
%
|
||||||||||||||
|
Tier 1 capital to average assets (Consolidated)
|
12.34
|
%
|
12.22
|
%
|
12.12
|
%
|
11.90
|
%
|
11.91
|
%
|
12.34
|
%
|
11.91
|
%
|
||||||||||||||
|
Total capital to risk-weighted assets (Consolidated)
|
16.78
|
%
|
16.14
|
%
|
15.54
|
%
|
15.79
|
%
|
15.49
|
%
|
16.78
|
%
|
15.49
|
%
|
||||||||||||||
|
Common equity tier 1 to risk weighted assets (Bank)
|
15.27
|
%
|
14.66
|
%
|
14.09
|
%
|
14.28
|
%
|
14.01
|
%
|
15.27
|
%
|
14.01
|
%
|
||||||||||||||
|
Tier 1 capital to average assets (Bank)
|
12.01
|
%
|
11.90
|
%
|
11.78
|
%
|
11.56
|
%
|
11.58
|
%
|
12.01
|
%
|
11.58
|
%
|
||||||||||||||
|
Total capital to risk-weighted assets (Bank)
|
16.36
|
%
|
15.73
|
%
|
15.13
|
%
|
15.36
|
%
|
15.09
|
%
|
16.36
|
%
|
15.09
|
%
|
||||||||||||||
|
Common equity to assets
|
10.40
|
%
|
10.29
|
%
|
9.67
|
%
|
9.59
|
%
|
9.60
|
%
|
10.40
|
%
|
9.60
|
%
|
||||||||||||||
|
Tangible common equity to assets
|
10.40
|
%
|
10.29
|
%
|
9.67
|
%
|
9.59
|
%
|
9.60
|
%
|
10.40
|
%
|
9.60
|
%
|
||||||||||||||
|
END OF PERIOD BALANCES
|
||||||||||||||||||||||||||||
|
Total portfolio loans
|
$
|
1,343,512
|
$
|
1,384,567
|
$
|
1,405,658
|
$
|
1,344,683
|
$
|
1,327,686
|
$
|
1,343,512
|
$
|
1,327,686
|
||||||||||||||
|
Earning assets
|
1,856,962
|
1,809,469
|
1,849,630
|
1,804,672
|
1,751,167
|
1,856,962
|
1,751,167
|
|||||||||||||||||||||
|
Total assets
|
1,978,405
|
1,925,880
|
1,975,124
|
1,919,273
|
1,872,541
|
1,978,405
|
1,872,541
|
|||||||||||||||||||||
|
Deposits
|
1,661,106
|
1,617,864
|
1,676,739
|
1,617,743
|
1,580,461
|
1,661,106
|
1,580,461
|
|||||||||||||||||||||
|
Total shareholders' equity
|
205,519
|
197,966
|
190,853
|
183,976
|
179,714
|
205,519
|
179,714
|
|||||||||||||||||||||
|
AVERAGE BALANCES
|
||||||||||||||||||||||||||||
|
Total portfolio loans
|
$
|
1,367,202
|
$
|
1,399,464
|
$
|
1,363,548
|
$
|
1,325,268
|
$
|
1,327,408
|
$
|
1,383,244
|
$
|
1,321,158
|
||||||||||||||
|
Earning assets
|
1,860,353
|
1,833,924
|
1,806,229
|
1,799,600
|
1,756,909
|
1,847,211
|
1,743,815
|
|||||||||||||||||||||
|
Total assets
|
1,978,880
|
1,948,301
|
1,918,543
|
1,915,655
|
1,872,559
|
1,963,675
|
1,859,309
|
|||||||||||||||||||||
|
Deposits
|
1,667,580
|
1,646,268
|
1,618,861
|
1,614,151
|
1,575,408
|
1,656,983
|
1,556,497
|
|||||||||||||||||||||
|
Total shareholders' equity
|
200,888
|
193,463
|
186,361
|
181,329
|
176,749
|
197,196
|
175,339
|
|||||||||||||||||||||