Macatawa Bank Corporation (NASDAQ: MCBC), the holding company for
Macatawa Bank (collectively, the “Company”), today announced its
results for the fourth quarter and full year of 2021.
- Full year 2021 net income of $29.0 million versus $30.2 million
in prior year
- Net income of $6.2 million in fourth quarter 2021 versus $9.0
million in fourth quarter 2020
- Decline in fourth quarter 2021 earnings from prior year fourth
quarter earnings primarily due to decrease in Paycheck Protection
Program ("PPP") loan fees recognized
- Provision for loan losses benefit of $750,000 in fourth quarter
2021 reflecting improvement in economic conditions
- Continued expense management discipline – 5% decrease in total
noninterest expense from fourth quarter 2020
- Loan portfolio balances, excluding PPP loans, down for the year
but showing growth in the fourth quarter
- Further growth in deposit balances – up 12% from fourth quarter
2020
- Grew investment securities portfolio by $174 million in fourth
quarter 2021 to strategically deploy excess liquidity
- Asset-sensitive balance sheet is well-positioned for a rising
interest rate environment
The Company reported net income of $6.2 million, or $0.18 per
diluted share, in the fourth quarter 2021 compared to $9.0 million,
or $0.26 per diluted share, in the fourth quarter 2020.
For the full year 2021, the Company reported net income of $29.0
million, or $0.85 per diluted share, compared to $30.2 million, or
$0.88 per diluted share, for the full year 2020.
"We are pleased to report solid results for the fourth quarter
of 2021 and for the full year 2021,” said Ronald L. Haan, President
and CEO of the Company. “We are encouraged by our commercial loan
origination activity and the resulting portfolio growth in the
fourth quarter 2021, excluding run-off of PPP loans. Our credit
quality remains strong and we had no commercial loan chargeoffs
during the fourth quarter 2021, contributing to a provision for
loan loss benefit of $750,000 for the quarter. Other fee income
including wealth management fees, debit card interchange income and
treasury management fees experienced healthy growth, offsetting
most of the reduction in mortgage gains for the year while total
non-interest expenses were flat for the year and down in the fourth
quarter 2021 compared to the same period in the prior year.
“Through measured growth of our investment portfolio, we
accelerated the deployment of excess liquid funds caused by our
robust deposit growth. Focusing on short-term, high quality
securities, we grew our investment portfolio by $174.0 million in
the fourth quarter 2021.”
Mr. Haan concluded: "Despite a challenging environment, we
produced strong earnings for the fourth quarter of 2021 and for the
year. Our asset quality is strong and as we have managed our
balance sheet to be asset-sensitive, we are very well-positioned to
benefit from the rising interest rate environment that we expect in
2022. We look forward to building on our fourth quarter momentum
and seizing more opportunities to strategically deploy the excess
funds our customers have entrusted us with.”
Operating ResultsNet interest
income for the fourth quarter 2021 totaled $12.8 million, a
decrease of $1.5 million from the third quarter 2021 and a decrease
of $3.7 million from the fourth quarter 2020. Net interest margin
for the fourth quarter 2021 was 1.85 percent, down 19 basis points
from the third quarter 2021, and down 84 basis points from the
fourth quarter 2020. Net interest income for the fourth quarter
2021 reflected amortization of $1.2 million in fees from loans
originated under the PPP, compared to $2.8 million in the third
quarter 2021 and $3.2 million in the fourth 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 fourth quarter 2021, the Company had approved and
received forgiveness disbursements from the SBA on 245 loans with
balances totaling $36.7 million. In the third quarter 2021, the
Company had approved and received forgiveness disbursements from
the SBA on 909 loans with balances totaling $92.4 million. Net
interest margin was further negatively impacted in the fourth
quarter 2021 versus the fourth 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 $582.4 million, on average, from
the fourth quarter 2020 and caused a 49 basis point decrease in net
interest margin in the fourth quarter 2021 compared to fourth
quarter 2020. 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 $296,000 in the fourth quarter
2021 compared to the third quarter 2021 and decreased $1.7 million
from the fourth quarter 2020. Gains on sales of mortgage loans in
the fourth quarter 2021 were down $337,000 compared to the third
quarter 2021 and were down $1.9 million from the fourth quarter
2020. The Company originated $16.4 million in mortgage loans for
sale in the fourth quarter 2021 compared to $21.3 million in the
third quarter 2021 and $36.2 million in the fourth quarter 2020.
For the full year 2021 non-interest income decreased by only
$281,000 despite a decrease in mortgage gains of $1.8 million.
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
and the full year.
Non-interest expense was $11.3 million for the fourth quarter
2021, compared to $11.6 million for the third quarter 2021 and
$12.0 million for the fourth quarter 2020. The largest component of
non-interest expense was salaries and benefit expenses. Salaries
and benefit expenses were down $254,000 compared to the third
quarter 2021 and were down $569,000 compared to the fourth quarter
2020. The decreases compared to the third quarter 2021 and the
fourth quarter 2020 were due largely to a lower level of
commissions from mortgage production as volume decreased and 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 |
|
Q4 2021 toQ3 2021 |
|
Q4 2021toQ4 2020 |
|
|
|
|
|
|
|
|
|
|
Salaries and other compensation |
|
$ |
(149 |
) |
|
$ |
(189 |
) |
|
|
Salary
deferral from commercial loans |
|
|
(32 |
) |
|
|
24 |
|
|
|
Bonus
accrual |
|
|
142 |
|
|
|
(16 |
) |
|
|
Mortgage
production – variable comp |
|
|
(41 |
) |
|
|
(221 |
) |
|
|
401k
matching contributions |
|
|
(13 |
) |
|
|
(80 |
) |
|
|
Medical
insurance costs |
|
|
(161 |
) |
|
|
(87 |
) |
|
|
Total change in salaries and benefits |
|
$ |
(254 |
) |
|
$ |
(569 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
FDIC assessment expense was $217,000 in the fourth quarter 2021
compared to $204,000 in the third quarter 2021 and $194,000 in the
fourth quarter 2020. FDIC assessment expense increased primarily as
a result of the significant increase in deposit balances between
periods. Data processing expenses were up $15,000 in the fourth
quarter 2021 compared to the third quarter 2021 and were down
$194,000 compared to the fourth quarter 2020 due to online banking
conversion related expenses incurred in the fourth quarter 2020.
Other categories of non-interest expense were relatively flat
compared to the third quarter 2021 and the fourth quarter 2020 due
to a continued focus on expense management.
Federal income tax expense was $1.4 million for the fourth
quarter 2021, $1.7 million for the third quarter 2021, and $1.8
million for the fourth quarter 2020. Federal income tax expense for
the fourth quarter 2020 benefitted from the reversal of $92,000
deferred tax valuation allowance at the end of 2020. The effective
tax rate was 18.0 percent for the fourth quarter 2021, compared to
19.4 percent for the third quarter 2021 and 16.8 percent for the
fourth quarter 2020.
Asset QualityA provision for loan losses
benefit of $750,000 was recorded in the fourth quarter 2021
compared to provision benefit of $550,000 in the third quarter 2021
and provision expense of $800,000 in the fourth quarter 2020. Net
loan recoveries for the fourth quarter 2021 were $107,000, compared
to third quarter 2021 net loan recoveries of $276,000 and fourth
quarter 2020 net loan recoveries of $50,000. At December 31, 2021,
the Company had experienced net loan recoveries in twenty-six of
the past twenty-eight quarters. Total loans past due on
payments by 30 days or more amounted to $129,000 at December 31,
2021, down $308,000 from $437,000 at September 30, 2021 and down
$452,000 from $581,000 at December 31, 2020. Delinquencies at
December 31, 2021 were comprised of just four individual loans.
Delinquency as a percentage of total loans was just 0.01 percent at
December 31, 2021, well below the Company’s peer level.
The allowance for loan losses of $15.9 million was 1.43 percent
of total loans at December 31, 2021, compared to $16.5 million or
1.45 percent of total loans at September 30, 2021, and $17.4
million or 1.22 percent at December 31, 2020. The ratio at December
31, 2021, September 30, 2021 and December 31, 2020 includes PPP
loans, which are fully guaranteed by the SBA and receive no
allowance allocation. The ratio excluding PPP loans was 1.49
percent at December 31, 2021, 1.56 percent at September 30, 2021
and 1.45 percent at December 31, 2020. The coverage ratio of
allowance for loan losses to nonperforming loans continued to be
strong and significantly exceeded 1-to-1 coverage at 173-to-1 as of
December 31, 2021.
At December 31, 2021, the Company's nonperforming loans were
$92,000, representing 0.01 percent of total loans. This compares to
$420,000 (0.04 percent of total loans) at September 30, 2021 and
$533,000 (0.04 percent of total loans) at December 31, 2020. Other
real estate owned and repossessed assets were $2.3 million at
December 31, 2021, compared to $2.3 million at September 30, 2021
and $2.5 million at December 31, 2020. Total non-performing assets,
including other real estate owned and nonperforming loans, were
$2.4 million, or 0.08 percent of total assets, at December 31,
2021. Total nonperforming assets, including other real estate owned
and nonperforming loans, decreased by $635,000 from December 31,
2020 to December 31, 2021.
A break-down of non-performing loans is shown in the table
below.
Dollars
in 000s |
|
Dec 31, 2021 |
|
Sept 30, 2021 |
|
June 30, 2021 |
|
Mar 31, 2021 |
|
Dec 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate |
|
$ |
5 |
|
$ |
332 |
|
$ |
341 |
|
$ |
432 |
|
$ |
438 |
|
Commercial and Industrial |
|
|
1 |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
--- |
|
Total Commercial Loans |
|
|
6 |
|
|
332 |
|
|
341 |
|
|
432 |
|
|
438 |
|
Residential Mortgage Loans |
|
|
86 |
|
|
88 |
|
|
92 |
|
|
93 |
|
|
95 |
|
Consumer
Loans |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
--- |
|
Total Non-Performing Loans |
|
$ |
92 |
|
$ |
420 |
|
$ |
433 |
|
$ |
525 |
|
$ |
533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A break-down of non-performing assets is shown in the table
below.
Dollars
in 000s |
|
Dec 31, 2021 |
|
Sept 30, 2021 |
|
June 30, 2021 |
|
Mar 31, 2021 |
|
Dec 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Performing Loans |
|
$ |
92 |
|
$ |
420 |
|
$ |
433 |
|
$ |
525 |
|
$ |
533 |
|
Other
Repossessed Assets |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
--- |
|
Other
Real Estate Owned |
|
|
2,343 |
|
|
2,343 |
|
|
2,343 |
|
|
2,371 |
|
|
2,537 |
|
Total Non-Performing Assets |
|
$ |
2,435 |
|
$ |
2,763 |
|
$ |
2,776 |
|
$ |
2,896 |
|
$ |
3,070 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet, Liquidity and Capital
Total assets were $2.93 billion at December 31, 2021, an
increase of $27.3 million from $2.90 billion at September 30, 2021
and an increase of $286.7 million from $2.64 billion at December
31, 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 $1.11
billion at December 31, 2021, a decrease of $27.6 million from
$1.14 billion at September 30, 2021 and a decrease of $320.3
million from $1.43 billion at December 31, 2020.
Commercial loans decreased by $281.2 million from December 31,
2020 to December 31, 2021, along with a decrease of $31.8 million
in the residential mortgage portfolio, and a decrease of $7.4
million in the consumer loan portfolio. Within commercial loans,
commercial real estate loans decreased by $36.1 million and
commercial and industrial loans decreased by $57.0 million.
However, the largest decrease in commercial loans was in PPP loans
which decreased by $187.1 million due to forgiveness by the SBA,
partially offset by new PPP loan originations of $126.9 million.
Excluding PPP loans, total commercial loans increased by $10.4
million during the fourth quarter 2021.
The composition of the commercial loan portfolio is shown in the
table below:
Dollars
in 000s |
|
Dec 31, 2021 |
|
Sept 30, 2021 |
|
June 30, 2021 |
|
Mar 31,2021 |
|
Dec 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and Development |
|
$ |
103,755 |
|
$ |
104,636 |
|
$ |
102,608 |
|
$ |
117,178 |
|
$ |
118,665 |
|
Other
Commercial Real Estate |
|
|
412,346 |
|
|
422,574 |
|
|
427,291 |
|
|
423,424 |
|
|
433,508 |
|
Commercial Loans Securedby Real Estate |
|
|
516,101 |
|
|
527,210 |
|
|
529,899 |
|
|
540,602 |
|
|
552,173 |
|
Commercial and Industrial |
|
|
378,318 |
|
|
356,812 |
|
|
359,846 |
|
|
392,208 |
|
|
436,331 |
|
Paycheck
Protection Program |
|
|
41,939 |
|
|
77,571 |
|
|
169,679 |
|
|
253,811 |
|
|
229,079 |
|
Total Commercial Loans |
|
$ |
936,358 |
|
$ |
961,593 |
|
$ |
1,059,424 |
|
$ |
1,186,621 |
|
$ |
1,217,583 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank owned life insurance was $52.5 million at December 31,
2021, down $313,000 from $52.8 million at September 30, 2021 and up
$10.0 million from $42.5 million at December 31, 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 $2.58 billion at December 31, 2021, up $24.8
million, or 1.0 percent, from $2.55 billion at September 30, 2021
and up $279.4 million, or 12.2 percent, from $2.30 billion at
December 31, 2020. Demand deposits were down $18.0 million in the
fourth quarter 2021 compared to the third quarter 2021 and were up
$170.3 million compared to the fourth quarter 2020. Money market
deposits and savings deposits were up $47.3 million from the third
quarter 2021 and were up $122.9 million from the fourth quarter
2020. Certificates of deposit were down $4.5 million at December
31, 2021 compared to September 30, 2021 and were down $13.8 million
compared to December 31, 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 of $85.0 million at December 31, 2021 were
unchanged compared to $85.0 million at September 30, 2021 and were
up $15.0 million compared to $70.0 million at December 31, 2020.
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 put option on this
advance was executed by the FHLB and the advance was repaid in full
on January 21, 2022.
The Company's total risk-based regulatory capital ratio at
December 31, 2021 was consistent with the ratio at December 31,
2020 despite the redemption of the remaining trust preferred
securities in the third quarter 2021. 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 December 31, 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 |
|
Twelve Months Ended |
|
|
|
|
|
|
4th Qtr |
|
3rd Qtr |
|
4th Qtr |
|
December 31 |
EARNINGS SUMMARY |
|
|
|
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Total interest income |
|
|
|
|
|
$ |
13,334 |
|
|
$ |
14,842 |
|
|
$ |
17,401 |
|
|
$ |
58,634 |
|
|
$ |
67,224 |
|
Total interest expense |
|
|
|
|
|
|
508 |
|
|
|
546 |
|
|
|
888 |
|
|
|
2,565 |
|
|
|
5,687 |
|
Net interest income |
|
|
|
|
|
|
12,826 |
|
|
|
14,296 |
|
|
|
16,513 |
|
|
|
56,069 |
|
|
|
61,537 |
|
Provision for loan losses |
|
|
|
|
|
|
(750 |
) |
|
|
(550 |
) |
|
|
800 |
|
|
|
(2,050 |
) |
|
|
3,000 |
|
Net interest income after provision for loan losses |
|
|
|
|
|
|
13,576 |
|
|
|
14,846 |
|
|
|
15,713 |
|
|
|
58,119 |
|
|
|
58,537 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit service charges |
|
|
|
|
|
|
1,206 |
|
|
|
1,183 |
|
|
|
1,073 |
|
|
|
4,446 |
|
|
|
4,030 |
|
Net gains on mortgage loans |
|
|
|
|
|
|
514 |
|
|
|
851 |
|
|
|
2,432 |
|
|
|
4,691 |
|
|
|
6,477 |
|
Trust fees |
|
|
|
|
|
|
1,114 |
|
|
|
1,079 |
|
|
|
957 |
|
|
|
4,331 |
|
|
|
3,758 |
|
Other |
|
|
|
|
|
|
2,512 |
|
|
|
2,529 |
|
|
|
2,610 |
|
|
|
10,227 |
|
|
|
9,711 |
|
Total non-interest income |
|
|
|
|
|
|
5,346 |
|
|
|
5,642 |
|
|
|
7,072 |
|
|
|
23,695 |
|
|
|
23,976 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
|
|
|
|
|
6,024 |
|
|
|
6,278 |
|
|
|
6,593 |
|
|
|
25,216 |
|
|
|
25,530 |
|
Occupancy |
|
|
|
|
|
|
963 |
|
|
|
992 |
|
|
|
971 |
|
|
|
3,986 |
|
|
|
3,955 |
|
Furniture and equipment |
|
|
|
|
|
|
1,011 |
|
|
|
1,014 |
|
|
|
974 |
|
|
|
3,940 |
|
|
|
3,678 |
|
FDIC assessment |
|
|
|
|
|
|
217 |
|
|
|
204 |
|
|
|
194 |
|
|
|
749 |
|
|
|
400 |
|
Other |
|
|
|
|
|
|
3,122 |
|
|
|
3,062 |
|
|
|
3,234 |
|
|
|
12,199 |
|
|
|
12,162 |
|
Total non-interest expense |
|
|
|
|
|
|
11,337 |
|
|
|
11,550 |
|
|
|
11,966 |
|
|
|
46,090 |
|
|
|
45,725 |
|
Income before income tax |
|
|
|
|
|
|
7,585 |
|
|
|
8,938 |
|
|
|
10,819 |
|
|
|
35,724 |
|
|
|
36,788 |
|
Income tax expense |
|
|
|
|
|
|
1,369 |
|
|
|
1,736 |
|
|
|
1,822 |
|
|
|
6,710 |
|
|
|
6,623 |
|
Net income |
|
|
|
|
|
$ |
6,216 |
|
|
$ |
7,202 |
|
|
$ |
8,997 |
|
|
$ |
29,014 |
|
|
$ |
30,165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
|
|
|
|
$ |
0.18 |
|
|
$ |
0.21 |
|
|
$ |
0.26 |
|
|
$ |
0.85 |
|
|
$ |
0.88 |
|
Diluted earnings per common share |
|
|
|
|
|
$ |
0.18 |
|
|
$ |
0.21 |
|
|
$ |
0.26 |
|
|
$ |
0.85 |
|
|
$ |
0.88 |
|
Return on average assets |
|
|
|
|
|
|
0.85 |
% |
|
|
0.98 |
% |
|
|
1.39 |
% |
|
|
1.02 |
% |
|
|
1.27 |
% |
Return on average equity |
|
|
|
|
|
|
9.84 |
% |
|
|
11.52 |
% |
|
|
15.24 |
% |
|
|
11.74 |
% |
|
|
13.19 |
% |
Net interest margin (fully taxable equivalent) |
|
|
|
|
|
|
1.85 |
% |
|
|
2.04 |
% |
|
|
2.69 |
% |
|
|
2.09 |
% |
|
|
2.75 |
% |
Efficiency ratio |
|
|
|
|
|
|
62.39 |
% |
|
|
57.93 |
% |
|
|
50.74 |
% |
|
|
57.78 |
% |
|
|
53.47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET DATA |
|
|
|
|
|
|
|
|
|
December 31 |
September 30 |
December 31 |
Assets |
|
|
|
|
|
|
|
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
Cash and due from banks |
|
|
|
|
|
|
|
|
|
$ |
23,669 |
|
|
$ |
30,413 |
|
|
$ |
31,480 |
|
Federal funds sold and other short-term investments |
|
|
|
|
|
|
|
|
|
|
1,128,119 |
|
|
|
1,239,525 |
|
|
|
752,256 |
|
Debt securities available for sale |
|
|
|
|
|
|
|
|
|
|
416,063 |
|
|
|
241,475 |
|
|
|
236,832 |
|
Debt securities held to maturity |
|
|
|
|
|
|
|
|
|
|
137,003 |
|
|
|
137,569 |
|
|
|
79,468 |
|
Federal Home Loan Bank Stock |
|
|
|
|
|
|
|
|
|
|
11,558 |
|
|
|
11,558 |
|
|
|
11,558 |
|
Loans held for sale |
|
|
|
|
|
|
|
|
|
|
1,407 |
|
|
|
2,635 |
|
|
|
5,422 |
|
Total loans |
|
|
|
|
|
|
|
|
|
|
1,108,993 |
|
|
|
1,136,613 |
|
|
|
1,429,331 |
|
Less allowance for loan loss |
|
|
|
|
|
|
|
|
|
|
15,889 |
|
|
|
16,532 |
|
|
|
17,408 |
|
Net loans |
|
|
|
|
|
|
|
|
|
|
1,093,104 |
|
|
|
1,120,081 |
|
|
|
1,411,923 |
|
Premises and equipment, net |
|
|
|
|
|
|
|
|
|
|
41,773 |
|
|
|
42,343 |
|
|
|
43,254 |
|
Bank-owned life insurance |
|
|
|
|
|
|
|
|
|
|
52,468 |
|
|
|
52,781 |
|
|
|
42,516 |
|
Other real estate owned |
|
|
|
|
|
|
|
|
|
|
2,343 |
|
|
|
2,343 |
|
|
|
2,537 |
|
Other assets |
|
|
|
|
|
|
|
|
|
|
21,244 |
|
|
|
20,777 |
|
|
|
24,780 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
|
|
|
|
|
|
|
|
$ |
2,928,751 |
|
|
$ |
2,901,500 |
|
|
$ |
2,642,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
|
|
|
|
|
|
|
|
$ |
886,115 |
|
|
$ |
934,477 |
|
|
$ |
809,437 |
|
Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|
1,691,843 |
|
|
|
1,618,698 |
|
|
|
1,489,150 |
|
Total deposits |
|
|
|
|
|
|
|
|
|
|
2,577,958 |
|
|
|
2,553,175 |
|
|
|
2,298,587 |
|
Other borrowed funds |
|
|
|
|
|
|
|
|
|
|
85,000 |
|
|
|
85,000 |
|
|
|
70,000 |
|
Long-term debt |
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
20,619 |
|
Other liabilities |
|
|
|
|
|
|
|
|
|
|
11,788 |
|
|
|
11,112 |
|
|
|
12,977 |
|
Total Liabilities |
|
|
|
|
|
|
|
|
|
|
2,674,746 |
|
|
|
2,649,287 |
|
|
|
2,402,183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
|
|
|
|
|
254,005 |
|
|
|
252,213 |
|
|
|
239,843 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
$ |
2,928,751 |
|
|
$ |
2,901,500 |
|
|
$ |
2,642,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MACATAWA BANK CORPORATION |
SELECTED CONSOLIDATED FINANCIAL DATA |
(Unaudited) |
(Dollars in thousands except per share information) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly |
|
Year to Date |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4th Qtr |
|
3rd Qtr |
|
2nd Qtr |
|
1st Qtr |
|
4th Qtr |
|
|
|
|
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
EARNINGS SUMMARY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
12,826 |
|
|
$ |
14,296 |
|
|
$ |
14,457 |
|
|
$ |
14,490 |
|
|
$ |
16,513 |
|
|
$ |
56,069 |
|
|
$ |
61,537 |
|
Provision for loan losses |
|
|
(750 |
) |
|
|
(550 |
) |
|
|
(750 |
) |
|
|
- |
|
|
|
800 |
|
|
|
(2,050 |
) |
|
|
3,000 |
|
Total non-interest income |
|
|
5,346 |
|
|
|
5,642 |
|
|
|
6,169 |
|
|
|
6,539 |
|
|
|
7,072 |
|
|
|
23,695 |
|
|
|
23,976 |
|
Total non-interest expense |
|
|
11,337 |
|
|
|
11,550 |
|
|
|
11,718 |
|
|
|
11,485 |
|
|
|
11,966 |
|
|
|
46,090 |
|
|
|
45,725 |
|
Federal income tax expense |
|
|
1,369 |
|
|
|
1,736 |
|
|
|
1,840 |
|
|
|
1,766 |
|
|
|
1,822 |
|
|
|
6,710 |
|
|
|
6,623 |
|
Net income |
|
$ |
6,216 |
|
|
$ |
7,202 |
|
|
$ |
7,818 |
|
|
$ |
7,778 |
|
|
$ |
8,997 |
|
|
$ |
29,014 |
|
|
$ |
30,165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
$ |
0.18 |
|
|
$ |
0.21 |
|
|
$ |
0.23 |
|
|
$ |
0.23 |
|
|
$ |
0.26 |
|
|
$ |
0.85 |
|
|
$ |
0.88 |
|
Diluted earnings per common share |
|
$ |
0.18 |
|
|
$ |
0.21 |
|
|
$ |
0.23 |
|
|
$ |
0.23 |
|
|
$ |
0.26 |
|
|
$ |
0.85 |
|
|
$ |
0.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARKET DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share |
|
$ |
7.41 |
|
|
$ |
7.38 |
|
|
$ |
7.26 |
|
|
$ |
7.09 |
|
|
$ |
7.01 |
|
|
$ |
7.41 |
|
|
$ |
7.01 |
|
Tangible book value per common share |
|
$ |
7.41 |
|
|
$ |
7.38 |
|
|
$ |
7.26 |
|
|
$ |
7.09 |
|
|
$ |
7.01 |
|
|
$ |
7.41 |
|
|
$ |
7.01 |
|
Market value per common share |
|
$ |
8.82 |
|
|
$ |
8.03 |
|
|
$ |
8.75 |
|
|
$ |
9.95 |
|
|
$ |
8.37 |
|
|
$ |
8.82 |
|
|
$ |
8.37 |
|
Average basic common shares |
|
|
34,229,664 |
|
|
|
34,190,264 |
|
|
|
34,193,016 |
|
|
|
34,195,526 |
|
|
|
34,154,820 |
|
|
|
34,202,179 |
|
|
|
34,120,275 |
|
Average diluted common shares |
|
|
34,229,664 |
|
|
|
34,190,264 |
|
|
|
34,193,016 |
|
|
|
34,195,526 |
|
|
|
34,154,820 |
|
|
|
34,202,179 |
|
|
|
34,120,275 |
|
Period end common shares |
|
|
34,259,945 |
|
|
|
34,189,799 |
|
|
|
34,192,317 |
|
|
|
34,193,132 |
|
|
|
34,197,519 |
|
|
|
34,259,945 |
|
|
|
34,197,519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.85 |
% |
|
|
0.98 |
% |
|
|
1.11 |
% |
|
|
1.17 |
% |
|
|
1.39 |
% |
|
|
1.02 |
% |
|
|
1.27 |
% |
Return on average equity |
|
|
9.84 |
% |
|
|
11.52 |
% |
|
|
12.79 |
% |
|
|
12.91 |
% |
|
|
15.24 |
% |
|
|
11.74 |
% |
|
|
13.19 |
% |
Net interest margin (fully taxable equivalent) |
|
|
1.85 |
% |
|
|
2.04 |
% |
|
|
2.19 |
% |
|
|
2.33 |
% |
|
|
2.69 |
% |
|
|
2.09 |
% |
|
|
2.75 |
% |
Efficiency ratio |
|
|
62.39 |
% |
|
|
57.93 |
% |
|
|
56.81 |
% |
|
|
54.62 |
% |
|
|
50.74 |
% |
|
|
57.78 |
% |
|
|
53.47 |
% |
Full-time equivalent employees (period end) |
|
|
311 |
|
|
|
318 |
|
|
|
321 |
|
|
|
327 |
|
|
|
328 |
|
|
|
311 |
|
|
|
328 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross charge-offs |
|
$ |
22 |
|
|
$ |
22 |
|
|
$ |
30 |
|
|
$ |
50 |
|
|
$ |
22 |
|
|
$ |
124 |
|
|
$ |
4,268 |
|
Net charge-offs/(recoveries) |
|
$ |
(107 |
) |
|
$ |
(276 |
) |
|
$ |
(104 |
) |
|
$ |
(44 |
) |
|
$ |
(50 |
) |
|
$ |
(531 |
) |
|
$ |
2,792 |
|
Net charge-offs to average loans (annualized) |
|
|
-0.04 |
% |
|
|
-0.09 |
% |
|
|
-0.03 |
% |
|
|
-0.01 |
% |
|
|
-0.01 |
% |
|
|
-0.04 |
% |
|
|
0.19 |
% |
Nonperforming loans |
|
$ |
92 |
|
|
$ |
420 |
|
|
$ |
433 |
|
|
$ |
525 |
|
|
$ |
533 |
|
|
$ |
92 |
|
|
$ |
533 |
|
Other real estate and repossessed assets |
|
$ |
2,343 |
|
|
$ |
2,343 |
|
|
$ |
2,343 |
|
|
$ |
2,371 |
|
|
$ |
2,537 |
|
|
$ |
2,343 |
|
|
$ |
2,537 |
|
Nonperforming loans to total loans |
|
|
0.01 |
% |
|
|
0.04 |
% |
|
|
0.03 |
% |
|
|
0.04 |
% |
|
|
0.04 |
% |
|
|
0.01 |
% |
|
|
0.04 |
% |
Nonperforming assets to total assets |
|
|
0.08 |
% |
|
|
0.10 |
% |
|
|
0.09 |
% |
|
|
0.11 |
% |
|
|
0.12 |
% |
|
|
0.08 |
% |
|
|
0.12 |
% |
Allowance for loan losses |
|
$ |
15,889 |
|
|
$ |
16,532 |
|
|
$ |
16,806 |
|
|
$ |
17,452 |
|
|
$ |
17,408 |
|
|
$ |
15,889 |
|
|
$ |
17,408 |
|
Allowance for loan losses to total loans |
|
|
1.43 |
% |
|
|
1.45 |
% |
|
|
1.36 |
% |
|
|
1.26 |
% |
|
|
1.22 |
% |
|
|
1.43 |
% |
|
|
1.22 |
% |
Allowance for loan losses to total loans (excluding PPP loans) |
|
1.49 |
% |
|
|
1.56 |
% |
|
|
1.57 |
% |
|
|
1.55 |
% |
|
|
1.45 |
% |
|
|
1.49 |
% |
|
|
1.45 |
% |
Allowance for loan losses to nonperforming loans |
|
|
17270.65 |
% |
|
|
3936.19 |
% |
|
|
3881.29 |
% |
|
|
3324.19 |
% |
|
|
3266.04 |
% |
|
|
17270.65 |
% |
|
|
3266.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average equity to average assets |
|
|
8.66 |
% |
|
|
8.48 |
% |
|
|
8.70 |
% |
|
|
9.04 |
% |
|
|
9.11 |
% |
|
|
8.71 |
% |
|
|
9.62 |
% |
Common equity tier 1 to risk weighted assets (Consolidated) |
|
|
17.24 |
% |
|
|
17.43 |
% |
|
|
17.10 |
% |
|
|
16.73 |
% |
|
|
15.79 |
% |
|
|
17.24 |
% |
|
|
15.79 |
% |
Tier 1 capital to average assets (Consolidated) |
|
|
8.72 |
% |
|
|
8.51 |
% |
|
|
9.48 |
% |
|
|
9.80 |
% |
|
|
9.89 |
% |
|
|
8.72 |
% |
|
|
9.89 |
% |
Total capital to risk-weighted assets (Consolidated) |
|
|
18.32 |
% |
|
|
18.58 |
% |
|
|
19.66 |
% |
|
|
19.33 |
% |
|
|
18.29 |
% |
|
|
18.32 |
% |
|
|
18.29 |
% |
Common equity tier 1 to risk weighted assets (Bank) |
|
|
16.70 |
% |
|
|
16.88 |
% |
|
|
16.57 |
% |
|
|
17.60 |
% |
|
|
16.67 |
% |
|
|
16.70 |
% |
|
|
16.67 |
% |
Tier 1 capital to average assets (Bank) |
|
|
8.44 |
% |
|
|
8.24 |
% |
|
|
8.49 |
% |
|
|
9.52 |
% |
|
|
9.63 |
% |
|
|
8.44 |
% |
|
|
9.63 |
% |
Total capital to risk-weighted assets (Bank) |
|
|
17.77 |
% |
|
|
18.02 |
% |
|
|
17.73 |
% |
|
|
18.81 |
% |
|
|
17.84 |
% |
|
|
17.77 |
% |
|
|
17.84 |
% |
Common equity to assets |
|
|
8.67 |
% |
|
|
8.69 |
% |
|
|
8.44 |
% |
|
|
8.87 |
% |
|
|
9.08 |
% |
|
|
8.67 |
% |
|
|
9.08 |
% |
Tangible common equity to assets |
|
|
8.67 |
% |
|
|
8.69 |
% |
|
|
8.44 |
% |
|
|
8.87 |
% |
|
|
9.08 |
% |
|
|
8.67 |
% |
|
|
9.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
END OF PERIOD BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total portfolio loans |
|
$ |
1,108,993 |
|
|
$ |
1,136,613 |
|
|
$ |
1,238,327 |
|
|
$ |
1,382,951 |
|
|
$ |
1,429,331 |
|
|
$ |
1,108,993 |
|
|
$ |
1,429,331 |
|
Earning assets |
|
|
2,803,853 |
|
|
|
2,768,507 |
|
|
|
2,803,634 |
|
|
|
2,611,093 |
|
|
|
2,510,882 |
|
|
|
2,803,853 |
|
|
|
2,510,882 |
|
Total assets |
|
|
2,928,751 |
|
|
|
2,901,500 |
|
|
|
2,941,086 |
|
|
|
2,734,341 |
|
|
|
2,642,026 |
|
|
|
2,928,751 |
|
|
|
2,642,026 |
|
Deposits |
|
|
2,577,958 |
|
|
|
2,553,175 |
|
|
|
2,600,076 |
|
|
|
2,387,945 |
|
|
|
2,298,587 |
|
|
|
2,577,958 |
|
|
|
2,298,587 |
|
Total shareholders' equity |
|
|
254,005 |
|
|
|
252,213 |
|
|
|
248,217 |
|
|
|
242,379 |
|
|
|
239,843 |
|
|
|
254,005 |
|
|
|
239,843 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total portfolio loans |
|
$ |
1,109,863 |
|
|
$ |
1,182,633 |
|
|
$ |
1,324,915 |
|
|
$ |
1,401,399 |
|
|
$ |
1,481,054 |
|
|
$ |
1,253,706 |
|
|
$ |
1,495,068 |
|
Earning assets |
|
|
2,780,236 |
|
|
|
2,804,157 |
|
|
|
2,669,862 |
|
|
|
2,537,300 |
|
|
|
2,457,746 |
|
|
|
2,698,846 |
|
|
|
2,247,850 |
|
Total assets |
|
|
2,917,569 |
|
|
|
2,948,664 |
|
|
|
2,809,487 |
|
|
|
2,666,802 |
|
|
|
2,590,875 |
|
|
|
2,836,627 |
|
|
|
2,376,523 |
|
Deposits |
|
|
2,564,961 |
|
|
|
2,605,043 |
|
|
|
2,468,398 |
|
|
|
2,321,012 |
|
|
|
2,249,679 |
|
|
|
2,490,838 |
|
|
|
2,044,643 |
|
Total shareholders' equity |
|
|
252,606 |
|
|
|
249,994 |
|
|
|
244,516 |
|
|
|
241,023 |
|
|
|
236,127 |
|
|
|
247,075 |
|
|
|
228,692 |
|
Contact:
Jon W. Swets
Chief Financial Officer
616-494-7645
jswets@macatawabank.com
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