Macatawa Bank Corporation (NASDAQ: MCBC), the holding company for
Macatawa Bank (collectively, the “Company”), today announced its
results for the third quarter 2021.
- Net income of $7.2 million in third quarter 2021 versus $7.1
million in third quarter 2020
- Provision for loan losses benefit of $550,000 in the third
quarter 2021 versus $500,000 provision expense in the third quarter
2020
- Loan portfolio balances down by $405.7 million (26%) from third
quarter 2020 reflecting a net decrease of $261.6 million in PPP
loans in the same time period
- New commercial loan origination activity accelerated in the
third quarter 2021 - $114.6 million versus $88.2 million in third
quarter 2020 and $62.0 million in second quarter 2021
- Deposit balances up by $382.6 million (18%) from third quarter
2020
- The Company redeemed its remaining $20 million trust preferred
securities on July 7, 2021
- Capital and liquidity levels increased further during the
quarter and remain strong
The Company reported net income of $7.2 million, or $0.21 per
diluted share, in the third quarter 2021 compared to $7.1 million,
or $0.21 per diluted share, in the third quarter 2020. For the
first nine months of 2021, the Company reported net income of $22.8
million, or $0.67 per diluted share, compared to $21.2 million, or
$0.62 per diluted share, for the same period in 2020.
"We are pleased to report solid results for the third quarter of
2021,” said Ronald L. Haan, President and CEO of the Company. “We
are encouraged by our increase in commercial loan origination
activity. Originations were up 30 percent in third quarter 2021
over third quarter 2020 and were up 85 percent over second quarter
2021. Our credit quality remains strong and we experienced no
commercial loan chargeoffs during the third quarter 2021, allowing
for a provision for loan loss benefit of $550,000 during the third
quarter 2021.”
“In addition, our customers’ deposits remain high. They are
continuing to retain an unprecedented level of balances with us,
with total deposits having grown from $1.7 billion at March 31,
2020 to over $2.5 billion at September 30, 2021. This not only
speaks to the strength of our customers, but their confidence in us
as their banking institution.”
“Our strong liquidity and capital position allowed us to redeem
the remaining $20.0 million of trust preferred securities in the
third quarter 2021. This simplifies our capital structure and will
reduce interest expense by approximately $600,000 annually.”
Mr. Haan concluded: "Despite a challenging environment, we
produced strong earnings for the third quarter of 2021. Our asset
quality is strong and we are well-positioned to build on our third
quarter momentum and seize more opportunities to safely deploy the
excess funds our customers have entrusted us with.”
Operating ResultsNet interest
income for the third quarter 2021 totaled $14.3 million, a decrease
of $161,000 from the second quarter 2021 and a decrease of $378,000
from the third quarter 2020. Net interest margin for the third
quarter 2021 was 2.04 percent, down 15 basis points from the second
quarter 2021, and down 39 basis points from the third quarter 2020.
Net interest income for the third quarter 2021 benefitted from
amortization of $2.8 million in fees from loans originated under
the PPP, compared to $2.4 million in the second quarter 2021 and
$1.2 million in the third quarter 2020. These fees are amortized
over the loans’ contractual maturity, which is 24 months or 60
months, as applicable. Upon SBA forgiveness, the remaining
unamortized fees are recognized into interest income. During the
third quarter 2021, the Company had approved and received
forgiveness disbursements from the SBA on 909 loans with balances
totaling $92.4 million. In the second quarter 2021, the Company had
approved and received forgiveness disbursements from the SBA on 200
loans with balances totaling $107.7 million. Net interest margin
was negatively impacted in the third quarter 2021 versus the third
quarter 2020 by our carrying significantly higher balances of
federal funds sold due to the significant increase in balances held
by depositors throughout the COVID-19 pandemic. These balances,
which earn only 10-15 basis points in interest, increased by $692.4
million, on average, from the third quarter 2020 and caused a 67
basis point decrease in net interest margin in the third quarter
2021 compared to third quarter 2020 and an 18 basis point decrease
compared to second quarter 2021. Floor rates established by the
Company on its variable rate loans over recent years served to
soften the negative impact on net interest income of the 2020
federal funds rate decreases. Without these floors, net interest
income for the quarter would have been lower than stated by
approximately $1.0 million.
On July 7, 2021, the Company redeemed its remaining $20.0
million of trust preferred securities. The Company estimates that
this will save approximately $600,000 of interest expense annually,
with regulatory capital remaining significantly above levels
required to be categorized as well capitalized.
Non-interest income decreased $527,000 in the third quarter 2021
compared to the second quarter 2021 and decreased $450,000 from the
third quarter 2020. Gains on sales of mortgage loans in the third
quarter 2021 were down $460,000 compared to the second quarter 2021
and were down $695,000 from the third quarter 2020. The Company
originated $21.3 million in mortgage loans for sale in the third
quarter 2021 compared to $39.2 million in the second quarter 2021
and $40.8 million in the third quarter 2020. Higher deposit service
charge income, wealth management fees and debit card interchange
income from customer usage softened the effect of a lower level of
mortgage gains recognized in the quarter.
Non-interest expense was $11.6 million for the third quarter
2021, compared to $11.7 million for the second quarter 2021 and
$11.5 million for the third quarter 2020. The largest component of
non-interest expense was salaries and benefit expenses. Salaries
and benefit expenses were down $224,000 compared to the second
quarter 2021 and were down $202,000 compared to the third quarter
2020. The decreases compared to the second quarter 2021 and the
third quarter 2020 were due largely to lower level of commissions
from mortgage production as volume decreased, and were also due to
lower medical insurance costs. The table below identifies the
primary components of the changes in salaries and benefits between
periods.
Dollars
in 000s |
|
Q3 2021 toQ2 2021 |
|
Q3 2021toQ3 2020 |
|
|
|
|
|
|
Salaries and other compensation |
|
$ |
0 |
|
|
$ |
30 |
|
Salary
deferral from commercial loans |
|
|
65 |
|
|
|
25 |
|
Bonus
accrual |
|
|
72 |
|
|
|
(7 |
) |
Mortgage
production – variable comp |
|
|
(193 |
) |
|
|
(129 |
) |
401k
matching contributions |
|
|
(5 |
) |
|
|
(96 |
) |
Medical
insurance costs |
|
|
(163 |
) |
|
|
(25 |
) |
Total change in salaries and benefits |
|
$ |
(224 |
) |
|
$ |
(202 |
) |
FDIC assessment expense was $204,000 in the third quarter 2021
compared to $159,000 in the second quarter 2021 and $131,000 in the
third quarter 2020. FDIC assessment expense increased primarily as
a result of the significant increase in deposit balances between
periods. In addition, assessment credits of $172,000 were applied
in the nine months ended September 30, 2020, contributing to the
increase in the 2021 periods compared to 2020. Data processing
expenses were down $15,000 in the third quarter 2021 compared to
the second quarter 2021 and were up $78,000 compared to the third
quarter 2020 due to higher ongoing online banking expenses from
higher usage by deposit customers. Other categories of non-interest
expense were relatively flat compared to the second quarter 2021
and the third quarter 2020 due to a continued focus on expense
management.
Federal income tax expense was $1.7 million for the third
quarter 2021, $1.8 million for the second quarter 2021, and $1.6
million for the third quarter 2020. The effective tax rate was 19.4
percent for the third quarter 2021, compared to 19.1 percent for
the second quarter 2021 and 18.5 percent for the third quarter
2020.
Asset QualityA provision for loan losses
benefit of $550,000 was recorded in the third quarter 2021 compared
to provision benefit of $750,000 in the second quarter 2021 and
provision expense of $500,000 in the third quarter 2020. Net loan
recoveries for the third quarter 2021 were $276,000, compared to
second quarter 2021 net loan recoveries of $104,000 and third
quarter 2020 net loan recoveries of $203,000. At September 30,
2021, the Company had experienced net loan recoveries in
twenty-five of the past twenty-seven quarters. Total
loans past due on payments by 30 days or more amounted to $437,000
at September 30, 2021, up $311,000 from $126,000 at June 30, 2021
and down $87,000 from $524,000 at September 30, 2020. Delinquencies
at September 30, 2021 were comprised of just four individual loans
and the increase in overall delinquencies was due primarily to one
loan that went past maturity at quarter end. Delinquency as a
percentage of total loans was just 0.04 percent at September 30,
2021, well below the Company’s peer level.
The allowance for loan losses of $16.5 million was 1.45 percent
of total loans at September 30, 2021, compared to $16.8 million or
1.36 percent of total loans at June 30, 2021, and $16.6 million or
1.07 percent at September 30, 2020. The ratio at September 30,
2021, June 30, 2021 and September 30, 2020 includes PPP loans,
which are fully guaranteed by the SBA and receive no allowance
allocation. The ratio excluding PPP loans was 1.56 percent at
September 30, 2021, 1.57 percent at June 30, 2021 and 1.38 percent
at September 30, 2020. The coverage ratio of allowance for loan
losses to nonperforming loans continued to be strong and
significantly exceeded 1-to-1 coverage at 39-to-1 as of September
30, 2021.
At September 30, 2021, the Company's nonperforming loans were
$420,000, representing 0.04 percent of total loans. This compares
to $433,000 (0.03 percent of total loans) at June 30, 2021 and
$195,000 (0.01 percent of total loans) at September 30, 2020. Other
real estate owned and repossessed assets were $2.3 million at
September 30, 2021, compared to $2.3 million at June 30, 2021 and
$2.6 million at September 30, 2020. Total non-performing assets,
including other real estate owned and nonperforming loans, were
$2.8 million, or 0.10 percent of total assets, at September 30,
2021. Total nonperforming assets, including other real estate owned
and nonperforming loans, decreased by $56,000 from September 30,
2020 to September 30, 2021.
A break-down of non-performing loans is shown in the table
below.
Dollars in 000s |
|
Sept 30, 2021 |
|
June 30, 2021 |
|
Mar 31, 2021 |
|
Dec 31, 2020 |
|
Sept 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate |
|
$ |
332 |
|
$ |
341 |
|
$ |
432 |
|
$ |
438 |
|
$ |
97 |
Commercial and Industrial |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
--- |
Total Commercial Loans |
|
|
332 |
|
|
341 |
|
|
432 |
|
|
438 |
|
|
97 |
Residential Mortgage
Loans |
|
|
88 |
|
|
92 |
|
|
93 |
|
|
95 |
|
|
98 |
Consumer Loans |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
--- |
Total Non-Performing Loans |
|
$ |
420 |
|
$ |
433 |
|
$ |
525 |
|
$ |
533 |
|
$ |
195 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A break-down of non-performing assets is shown in the table
below.
Dollars
in 000s |
|
Sept 30, 2021 |
|
June 30, 2021 |
|
Mar 31, 2021 |
|
Dec 31, 2020 |
|
Sept 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Performing Loans |
|
$ |
420 |
|
$ |
433 |
|
$ |
525 |
|
$ |
533 |
|
$ |
195 |
Other
Repossessed Assets |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
--- |
Other
Real Estate Owned |
|
|
2,343 |
|
|
2,343 |
|
|
2,371 |
|
|
2,537 |
|
|
2,624 |
Total Non-Performing Assets |
|
$ |
2,763 |
|
$ |
2,776 |
|
$ |
2,896 |
|
$ |
3,070 |
|
$ |
2,819 |
Balance Sheet, Liquidity and Capital
Total assets were $2.90 billion at September 30, 2021, a
decrease of $39.6 million from $2.94 billion at June 30, 2021 and
an increase of $392.8 million from $2.51 billion at September 30,
2020. Assets were elevated at each period due to customers holding
a higher level of deposits during the COVID-19 pandemic, including
balances from PPP loan proceeds. Total loans were $1.14 billion at
September 30, 2021, a decrease of $101.7 million from $1.24 billion
at June 30, 2021 and a decrease of $405.7 million from $1.54
billion at September 30, 2020.
Commercial loans decreased by $350.2 million from September 30,
2020 to September 30, 2021, along with a decrease of $45.7 million
in the residential mortgage portfolio, and a decrease of $9.8
million in the consumer loan portfolio. Within commercial loans,
commercial real estate loans decreased by $31.7 million and
commercial and industrial loans decreased by $56.9 million.
However, the largest decrease in commercial loans was in PPP loans
which decreased by $261.6 million due to forgiveness by the SBA of
$388.5 million in PPP loans, partially offset by new PPP loan
originations of $126.9 million.
The composition of the commercial loan portfolio is shown in the
table below:
Dollars
in 000s |
|
Sept 30, 2021 |
|
June 30, 2021 |
|
Mar 31, 2021 |
|
Dec 31, 2020 |
|
Sept 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and Development |
|
$ |
104,636 |
|
$ |
102,608 |
|
$ |
117,178 |
|
$ |
118,665 |
|
$ |
121,578 |
Other
Commercial Real Estate |
|
|
422,574 |
|
|
427,291 |
|
|
423,424 |
|
|
433,508 |
|
|
437,345 |
Commercial Loans Securedby Real Estate |
|
|
527,210 |
|
|
529,899 |
|
|
540,602 |
|
|
552,173 |
|
|
558,923 |
Commercial and Industrial |
|
|
356,812 |
|
|
359,846 |
|
|
392,208 |
|
|
436,331 |
|
|
413,702 |
Paycheck
Protection Program |
|
|
77,571 |
|
|
169,679 |
|
|
253,811 |
|
|
229,079 |
|
|
339,216 |
Total Commercial Loans |
|
$ |
961,593 |
|
$ |
1,059,424 |
|
$ |
1,186,621 |
|
$ |
1,217,583 |
|
$ |
1,311,841 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank owned life insurance was $52.8 million at September 30,
2021, up $274,000 from $52.5 million at June 30, 2021 and up $10.4
million from $42.4 million at September 30, 2020 due to an
additional $10.0 million in insurance policies purchased early in
the second quarter 2021 and earnings on the underlying
investments.
Total deposits were $2.55 billion at September 30, 2021, down
$46.9 million, or 1.8 percent, from $2.60 billion at June 30, 2021
and were up $382.6 million, or 17.6 percent, from $2.17 billion at
September 30, 2020. Demand deposits were down $57.5 million in the
third quarter 2021 compared to the second quarter 2021 and were up
$342.2 million compared to the third quarter 2020. Money market
deposits and savings deposits were up $13.2 million from the second
quarter 2021 and were up $61.2 million from the third quarter 2020.
Certificates of deposit were down $2.6 million at September 30,
2021 compared to June 30, 2021 and were down $20.8 million compared
to September 30, 2020 as customers reacted to changes in market
interest rates. As deposit rates have dropped, the Company has
experienced some shifting between deposit types and, overall,
deposit customers are holding higher levels of liquid deposit
balances in the low interest rate environment and due to
uncertainty related to the COVID-19 pandemic. The Company 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.
Other borrowed funds were up $25.0 million to $85.0 million at
September 30, 2021 compared to $60.0 million at June 30, 2021 and
were up $15.0 million compared to $70.0 million at September 30,
2021. The increases were due to an additional $25.0 million advance
taken in the third quarter 2021. This advance is putable quarterly
by the FHLB and carries a rate of 0.01%. Considering the additional
dividend provided by the FHLB on activity based stock, this advance
effectively carries a negative interest rate, resulting in positive
income for the Company from the advance.
The Company's total risk-based regulatory capital ratio at
September 30, 2021 was lower than the ratio at June 30, 2021 due to
the redemption of the remaining trust preferred securities in the
third quarter 2021, but remained higher than at September 30, 2020.
Macatawa Bank’s risk-based regulatory capital ratios continue to be
at levels considerably 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, 2021.
About Macatawa BankHeadquartered in Holland,
Michigan, 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 ten 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 risks and uncertainties related to,
and the impact of, the global coronavirus (COVID-19) pandemic on
the business, financial condition and results of operations of our
company and our customers, 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, 2020. 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 |
|
|
|
|
|
|
3rd Qtr |
|
2nd Qtr |
|
3rd Qtr |
|
September 30 |
EARNINGS SUMMARY |
|
|
|
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Total interest income |
|
|
|
|
|
$ |
14,842 |
|
|
$ |
15,184 |
|
|
$ |
15,822 |
|
|
$ |
45,300 |
|
|
$ |
49,823 |
|
Total interest expense |
|
|
|
|
|
|
546 |
|
|
|
727 |
|
|
|
1,148 |
|
|
|
2,057 |
|
|
|
4,799 |
|
Net interest income |
|
|
|
|
|
|
14,296 |
|
|
|
14,457 |
|
|
|
14,674 |
|
|
|
43,243 |
|
|
|
45,024 |
|
Provision for loan losses |
|
|
|
|
|
|
(550 |
) |
|
|
(750 |
) |
|
|
500 |
|
|
|
(1,300 |
) |
|
|
2,200 |
|
Net interest income after provision for loan losses |
|
|
|
|
|
|
14,846 |
|
|
|
15,207 |
|
|
|
14,174 |
|
|
|
44,543 |
|
|
|
42,824 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit service charges |
|
|
|
|
|
|
1,183 |
|
|
|
1,065 |
|
|
|
987 |
|
|
|
3,240 |
|
|
|
2,957 |
|
Net gains on mortgage loans |
|
|
|
|
|
|
851 |
|
|
|
1,311 |
|
|
|
1,546 |
|
|
|
4,177 |
|
|
|
4,045 |
|
Trust fees |
|
|
|
|
|
|
1,079 |
|
|
|
1,133 |
|
|
|
921 |
|
|
|
3,217 |
|
|
|
2,801 |
|
Other |
|
|
|
|
|
|
2,529 |
|
|
|
2,660 |
|
|
|
2,638 |
|
|
|
7,715 |
|
|
|
7,101 |
|
Total non-interest income |
|
|
|
|
|
|
5,642 |
|
|
|
6,169 |
|
|
|
6,092 |
|
|
|
18,349 |
|
|
|
16,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
|
|
|
|
|
6,278 |
|
|
|
6,502 |
|
|
|
6,480 |
|
|
|
19,192 |
|
|
|
18,937 |
|
Occupancy |
|
|
|
|
|
|
992 |
|
|
|
994 |
|
|
|
1,026 |
|
|
|
3,023 |
|
|
|
2,984 |
|
Furniture and equipment |
|
|
|
|
|
|
1,014 |
|
|
|
978 |
|
|
|
967 |
|
|
|
2,929 |
|
|
|
2,704 |
|
FDIC assessment |
|
|
|
|
|
|
204 |
|
|
|
159 |
|
|
|
131 |
|
|
|
532 |
|
|
|
207 |
|
Other |
|
|
|
|
|
|
3,062 |
|
|
|
3,085 |
|
|
|
2,929 |
|
|
|
9,077 |
|
|
|
8,927 |
|
Total non-interest expense |
|
|
|
|
|
|
11,550 |
|
|
|
11,718 |
|
|
|
11,533 |
|
|
|
34,753 |
|
|
|
33,759 |
|
Income before income tax |
|
|
|
|
|
|
8,938 |
|
|
|
9,658 |
|
|
|
8,733 |
|
|
|
28,139 |
|
|
|
25,969 |
|
Income tax expense |
|
|
|
|
|
|
1,736 |
|
|
|
1,840 |
|
|
|
1,613 |
|
|
|
5,341 |
|
|
|
4,800 |
|
Net income |
|
|
|
|
|
$ |
7,202 |
|
|
$ |
7,818 |
|
|
$ |
7,120 |
|
|
$ |
22,798 |
|
|
$ |
21,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
|
|
|
|
$ |
0.21 |
|
|
$ |
0.23 |
|
|
$ |
0.21 |
|
|
$ |
0.67 |
|
|
$ |
0.62 |
|
Diluted earnings per common share |
|
|
|
|
|
$ |
0.21 |
|
|
$ |
0.23 |
|
|
$ |
0.21 |
|
|
$ |
0.67 |
|
|
$ |
0.62 |
|
Return on average assets |
|
|
|
|
|
|
0.98 |
% |
|
|
1.11 |
% |
|
|
1.12 |
% |
|
|
1.08 |
% |
|
|
1.22 |
% |
Return on average equity |
|
|
|
|
|
|
11.52 |
% |
|
|
12.79 |
% |
|
|
12.29 |
% |
|
|
12.40 |
% |
|
|
12.48 |
% |
Net interest margin (fully taxable equivalent) |
|
|
|
|
|
|
2.04 |
% |
|
|
2.19 |
% |
|
|
2.43 |
% |
|
|
2.18 |
% |
|
|
2.77 |
% |
Efficiency ratio |
|
|
|
|
|
|
57.93 |
% |
|
|
56.81 |
% |
|
|
55.54 |
% |
|
|
56.42 |
% |
|
|
54.51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET DATA |
|
|
|
|
|
|
|
|
|
September 30 |
June 30 |
|
September 30 |
Assets |
|
|
|
|
|
|
|
|
|
2021 |
|
2021 |
|
2020 |
Cash and due from banks |
|
|
|
|
|
|
|
|
|
$ |
30,413 |
|
|
$ |
31,051 |
|
|
$ |
28,294 |
|
Federal funds sold and other short-term investments |
|
|
|
|
|
|
|
|
|
|
1,239,525 |
|
|
|
1,189,266 |
|
|
|
504,706 |
|
Debt securities available for sale |
|
|
|
|
|
|
|
|
|
|
241,475 |
|
|
|
239,955 |
|
|
|
229,928 |
|
Debt securities held to maturity |
|
|
|
|
|
|
|
|
|
|
137,569 |
|
|
|
121,867 |
|
|
|
91,394 |
|
Federal Home Loan Bank Stock |
|
|
|
|
|
|
|
|
|
|
11,558 |
|
|
|
11,558 |
|
|
|
11,558 |
|
Loans held for sale |
|
|
|
|
|
|
|
|
|
|
2,635 |
|
|
|
4,752 |
|
|
|
3,508 |
|
Total loans |
|
|
|
|
|
|
|
|
|
|
1,136,613 |
|
|
|
1,238,327 |
|
|
|
1,542,335 |
|
Less allowance for loan loss |
|
|
|
|
|
|
|
|
|
|
16,532 |
|
|
|
16,806 |
|
|
|
16,558 |
|
Net loans |
|
|
|
|
|
|
|
|
|
|
1,120,081 |
|
|
|
1,221,521 |
|
|
|
1,525,777 |
|
Premises and equipment, net |
|
|
|
|
|
|
|
|
|
|
42,343 |
|
|
|
42,906 |
|
|
|
43,733 |
|
Bank-owned life insurance |
|
|
|
|
|
|
|
|
|
|
52,781 |
|
|
|
52,507 |
|
|
|
42,368 |
|
Other real estate owned |
|
|
|
|
|
|
|
|
|
|
2,343 |
|
|
|
2,343 |
|
|
|
2,624 |
|
Other assets |
|
|
|
|
|
|
|
|
|
|
20,777 |
|
|
|
23,360 |
|
|
|
24,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
|
|
|
|
|
|
|
|
$ |
2,901,500 |
|
|
$ |
2,941,086 |
|
|
$ |
2,508,718 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
|
|
|
|
|
|
|
|
$ |
934,477 |
|
|
$ |
956,961 |
|
|
$ |
738,471 |
|
Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|
1,618,698 |
|
|
|
1,643,115 |
|
|
|
1,432,108 |
|
Total deposits |
|
|
|
|
|
|
|
|
|
|
2,553,175 |
|
|
|
2,600,076 |
|
|
|
2,170,579 |
|
Other borrowed funds |
|
|
|
|
|
|
|
|
|
|
85,000 |
|
|
|
60,000 |
|
|
|
70,000 |
|
Long-term debt |
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
20,619 |
|
|
|
20,619 |
|
Other liabilities |
|
|
|
|
|
|
|
|
|
|
11,112 |
|
|
|
12,174 |
|
|
|
13,655 |
|
Total Liabilities |
|
|
|
|
|
|
|
|
|
|
2,649,287 |
|
|
|
2,692,869 |
|
|
|
2,274,853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
|
|
|
|
|
252,213 |
|
|
|
248,217 |
|
|
|
233,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
$ |
2,901,500 |
|
|
$ |
2,941,086 |
|
|
$ |
2,508,718 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MACATAWA BANK CORPORATION |
SELECTED CONSOLIDATED FINANCIAL DATA |
(Unaudited) |
(Dollars in thousands except per share information) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly |
|
Year to Date |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd Qtr |
|
2nd Qtr |
|
1st Qtr |
|
4th Qtr |
|
3rd Qtr |
|
|
|
|
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
EARNINGS SUMMARY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
14,296 |
|
|
$ |
14,457 |
|
|
$ |
14,490 |
|
|
$ |
16,513 |
|
|
$ |
14,674 |
|
|
$ |
43,243 |
|
|
$ |
45,024 |
|
Provision for loan losses |
|
|
(550 |
) |
|
|
(750 |
) |
|
|
- |
|
|
|
800 |
|
|
|
500 |
|
|
|
(1,300 |
) |
|
|
2,200 |
|
Total non-interest income |
|
|
5,642 |
|
|
|
6,169 |
|
|
|
6,539 |
|
|
|
7,072 |
|
|
|
6,092 |
|
|
|
18,349 |
|
|
|
16,904 |
|
Total non-interest expense |
|
|
11,550 |
|
|
|
11,718 |
|
|
|
11,485 |
|
|
|
11,966 |
|
|
|
11,533 |
|
|
|
34,753 |
|
|
|
33,759 |
|
Federal income tax expense |
|
|
1,736 |
|
|
|
1,840 |
|
|
|
1,766 |
|
|
|
1,822 |
|
|
|
1,613 |
|
|
|
5,341 |
|
|
|
4,800 |
|
Net income |
|
$ |
7,202 |
|
|
$ |
7,818 |
|
|
$ |
7,778 |
|
|
$ |
8,997 |
|
|
$ |
7,120 |
|
|
$ |
22,798 |
|
|
$ |
21,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
$ |
0.21 |
|
|
$ |
0.23 |
|
|
$ |
0.23 |
|
|
$ |
0.26 |
|
|
$ |
0.21 |
|
|
$ |
0.67 |
|
|
$ |
0.62 |
|
Diluted earnings per common share |
|
$ |
0.21 |
|
|
$ |
0.23 |
|
|
$ |
0.23 |
|
|
$ |
0.26 |
|
|
$ |
0.21 |
|
|
$ |
0.67 |
|
|
$ |
0.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARKET DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share |
|
$ |
7.38 |
|
|
$ |
7.26 |
|
|
$ |
7.09 |
|
|
$ |
7.01 |
|
|
$ |
6.86 |
|
|
$ |
7.38 |
|
|
$ |
6.86 |
|
Tangible book value per common share |
|
$ |
7.38 |
|
|
$ |
7.26 |
|
|
$ |
7.09 |
|
|
$ |
7.01 |
|
|
$ |
6.86 |
|
|
$ |
7.38 |
|
|
$ |
6.86 |
|
Market value per common share |
|
$ |
8.03 |
|
|
$ |
8.75 |
|
|
$ |
9.95 |
|
|
$ |
8.37 |
|
|
$ |
6.53 |
|
|
$ |
8.03 |
|
|
$ |
6.53 |
|
Average basic common shares |
|
|
34,190,264 |
|
|
|
34,193,016 |
|
|
|
34,195,526 |
|
|
|
34,154,820 |
|
|
|
34,109,901 |
|
|
|
34,192,916 |
|
|
|
34,108,676 |
|
Average diluted common shares |
|
|
34,190,264 |
|
|
|
34,193,016 |
|
|
|
34,195,526 |
|
|
|
34,154,820 |
|
|
|
34,109,901 |
|
|
|
34,192,916 |
|
|
|
34,108,676 |
|
Period end common shares |
|
|
34,189,799 |
|
|
|
34,192,317 |
|
|
|
34,193,132 |
|
|
|
34,197,519 |
|
|
|
34,101,320 |
|
|
|
34,189,799 |
|
|
|
34,101,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.98 |
% |
|
|
1.11 |
% |
|
|
1.17 |
% |
|
|
1.39 |
% |
|
|
1.12 |
% |
|
|
1.08 |
% |
|
|
1.22 |
% |
Return on average equity |
|
|
11.52 |
% |
|
|
12.79 |
% |
|
|
12.91 |
% |
|
|
15.24 |
% |
|
|
12.29 |
% |
|
|
12.40 |
% |
|
|
12.48 |
% |
Net interest margin (fully taxable equivalent) |
|
|
2.04 |
% |
|
|
2.19 |
% |
|
|
2.33 |
% |
|
|
2.69 |
% |
|
|
2.43 |
% |
|
|
2.18 |
% |
|
|
2.77 |
% |
Efficiency ratio |
|
|
57.93 |
% |
|
|
56.81 |
% |
|
|
54.62 |
% |
|
|
50.74 |
% |
|
|
55.54 |
% |
|
|
56.42 |
% |
|
|
54.51 |
% |
Full-time equivalent employees (period end) |
|
|
318 |
|
|
|
321 |
|
|
|
327 |
|
|
|
328 |
|
|
|
327 |
|
|
|
318 |
|
|
|
327 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross charge-offs |
|
$ |
22 |
|
|
$ |
30 |
|
|
$ |
50 |
|
|
$ |
22 |
|
|
$ |
24 |
|
|
$ |
102 |
|
|
$ |
4,246 |
|
Net charge-offs/(recoveries) |
|
$ |
(276 |
) |
|
$ |
(104 |
) |
|
$ |
(44 |
) |
|
$ |
(50 |
) |
|
$ |
(203 |
) |
|
$ |
(424 |
) |
|
$ |
2,842 |
|
Net charge-offs to average loans (annualized) |
|
|
-0.09 |
% |
|
|
-0.03 |
% |
|
|
-0.01 |
% |
|
|
-0.01 |
% |
|
|
-0.05 |
% |
|
|
-0.04 |
% |
|
|
0.25 |
% |
Nonperforming loans |
|
$ |
420 |
|
|
$ |
433 |
|
|
$ |
525 |
|
|
$ |
533 |
|
|
$ |
195 |
|
|
$ |
420 |
|
|
$ |
195 |
|
Other real estate and repossessed assets |
|
$ |
2,343 |
|
|
$ |
2,343 |
|
|
$ |
2,371 |
|
|
$ |
2,537 |
|
|
$ |
2,624 |
|
|
$ |
2,343 |
|
|
$ |
2,624 |
|
Nonperforming loans to total loans |
|
|
0.04 |
% |
|
|
0.03 |
% |
|
|
0.04 |
% |
|
|
0.04 |
% |
|
|
0.01 |
% |
|
|
0.04 |
% |
|
|
0.01 |
% |
Nonperforming assets to total assets |
|
|
0.10 |
% |
|
|
0.09 |
% |
|
|
0.11 |
% |
|
|
0.12 |
% |
|
|
0.11 |
% |
|
|
0.10 |
% |
|
|
0.11 |
% |
Allowance for loan losses |
|
$ |
16,532 |
|
|
$ |
16,806 |
|
|
$ |
17,452 |
|
|
$ |
17,408 |
|
|
$ |
16,558 |
|
|
$ |
16,532 |
|
|
$ |
16,558 |
|
Allowance for loan losses to total loans |
|
|
1.45 |
% |
|
|
1.36 |
% |
|
|
1.26 |
% |
|
|
1.22 |
% |
|
|
1.07 |
% |
|
|
1.45 |
% |
|
|
1.07 |
% |
Allowance for loan losses to total loans (excluding PPP loans) |
|
1.56 |
% |
|
|
1.57 |
% |
|
|
1.55 |
% |
|
|
1.45 |
% |
|
|
1.38 |
% |
|
|
1.56 |
% |
|
|
1.38 |
% |
Allowance for loan losses to nonperforming loans |
|
|
3936.19 |
% |
|
|
3881.29 |
% |
|
|
3324.19 |
% |
|
|
3266.04 |
% |
|
|
8491.28 |
% |
|
|
3936.19 |
% |
|
|
8491.28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average equity to average assets |
|
|
8.48 |
% |
|
|
8.70 |
% |
|
|
9.04 |
% |
|
|
9.11 |
% |
|
|
9.07 |
% |
|
|
8.73 |
% |
|
|
9.82 |
% |
Common equity tier 1 to risk weighted assets (Consolidated) |
|
|
17.43 |
% |
|
|
17.10 |
% |
|
|
16.73 |
% |
|
|
15.79 |
% |
|
|
15.30 |
% |
|
|
17.43 |
% |
|
|
15.30 |
% |
Tier 1 capital to average assets (Consolidated) |
|
|
8.51 |
% |
|
|
9.48 |
% |
|
|
9.80 |
% |
|
|
9.89 |
% |
|
|
9.78 |
% |
|
|
8.51 |
% |
|
|
9.78 |
% |
Total capital to risk-weighted assets (Consolidated) |
|
|
18.58 |
% |
|
|
19.66 |
% |
|
|
19.33 |
% |
|
|
18.29 |
% |
|
|
17.74 |
% |
|
|
18.58 |
% |
|
|
17.74 |
% |
Common equity tier 1 to risk weighted assets (Bank) |
|
|
16.88 |
% |
|
|
16.57 |
% |
|
|
17.60 |
% |
|
|
16.67 |
% |
|
|
16.18 |
% |
|
|
16.88 |
% |
|
|
16.18 |
% |
Tier 1 capital to average assets (Bank) |
|
|
8.24 |
% |
|
|
8.49 |
% |
|
|
9.52 |
% |
|
|
9.63 |
% |
|
|
9.52 |
% |
|
|
8.24 |
% |
|
|
9.52 |
% |
Total capital to risk-weighted assets (Bank) |
|
|
18.02 |
% |
|
|
17.73 |
% |
|
|
18.81 |
% |
|
|
17.84 |
% |
|
|
17.28 |
% |
|
|
18.02 |
% |
|
|
17.28 |
% |
Common equity to assets |
|
|
8.69 |
% |
|
|
8.44 |
% |
|
|
8.87 |
% |
|
|
9.08 |
% |
|
|
9.32 |
% |
|
|
8.69 |
% |
|
|
9.32 |
% |
Tangible common equity to assets |
|
|
8.69 |
% |
|
|
8.44 |
% |
|
|
8.87 |
% |
|
|
9.08 |
% |
|
|
9.32 |
% |
|
|
8.69 |
% |
|
|
9.32 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
END OF PERIOD BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total portfolio loans |
|
$ |
1,136,613 |
|
|
$ |
1,238,327 |
|
|
$ |
1,382,951 |
|
|
$ |
1,429,331 |
|
|
$ |
1,542,335 |
|
|
$ |
1,136,613 |
|
|
$ |
1,542,335 |
|
Earning assets |
|
|
2,768,507 |
|
|
|
2,803,634 |
|
|
|
2,611,093 |
|
|
|
2,510,882 |
|
|
|
2,376,943 |
|
|
|
2,768,507 |
|
|
|
2,376,943 |
|
Total assets |
|
|
2,901,500 |
|
|
|
2,941,086 |
|
|
|
2,734,341 |
|
|
|
2,642,026 |
|
|
|
2,508,718 |
|
|
|
2,901,500 |
|
|
|
2,508,718 |
|
Deposits |
|
|
2,553,175 |
|
|
|
2,600,076 |
|
|
|
2,387,945 |
|
|
|
2,298,587 |
|
|
|
2,170,579 |
|
|
|
2,553,175 |
|
|
|
2,170,579 |
|
Total shareholders' equity |
|
|
252,213 |
|
|
|
248,217 |
|
|
|
242,379 |
|
|
|
239,843 |
|
|
|
233,865 |
|
|
|
252,213 |
|
|
|
233,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total portfolio loans |
|
$ |
1,182,633 |
|
|
$ |
1,324,915 |
|
|
$ |
1,401,399 |
|
|
$ |
1,481,054 |
|
|
$ |
1,542,838 |
|
|
$ |
1,302,181 |
|
|
$ |
1,499,774 |
|
Earning assets |
|
|
2,804,157 |
|
|
|
2,669,862 |
|
|
|
2,537,300 |
|
|
|
2,457,746 |
|
|
|
2,416,072 |
|
|
|
2,671,417 |
|
|
|
2,177,374 |
|
Total assets |
|
|
2,948,664 |
|
|
|
2,809,487 |
|
|
|
2,666,802 |
|
|
|
2,590,875 |
|
|
|
2,554,198 |
|
|
|
2,809,350 |
|
|
|
2,304,551 |
|
Deposits |
|
|
2,605,043 |
|
|
|
2,468,398 |
|
|
|
2,321,012 |
|
|
|
2,249,679 |
|
|
|
2,215,509 |
|
|
|
2,465,858 |
|
|
|
1,975,799 |
|
Total shareholders' equity |
|
|
249,994 |
|
|
|
244,516 |
|
|
|
241,023 |
|
|
|
236,127 |
|
|
|
231,702 |
|
|
|
245,211 |
|
|
|
226,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact:
Jon Swets, CFO
616-494-7645
Grafico Azioni Macatawa Bank (NASDAQ:MCBC)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Macatawa Bank (NASDAQ:MCBC)
Storico
Da Lug 2023 a Lug 2024