Macatawa Bank Corporation (NASDAQ: MCBC), the holding company for
Macatawa Bank (collectively, the “Company”), today announced its
results for the first quarter 2022.
- Net income of $6.0 million in first quarter 2022 versus $7.8
million in first quarter 2021
- Decline in first quarter 2022 earnings from prior year
primarily due to decrease in Paycheck Protection Program ("PPP")
loan fees recognized and lower mortgage banking income
- Provision for loan losses benefit of $1.5 million in first
quarter 2022 reflecting improvement in economic conditions and net
recoveries of $227,000 for the quarter
- Loan portfolio balances, excluding PPP loans, up by $28.5
million (10% annualized growth rate) from fourth quarter 2021
- Grew investment securities portfolio by $47.6 million in first
quarter 2022 to supplement loan growth and continue strategic
deployment of excess liquidity
- Asset-sensitive balance sheet is well-positioned for a rising
interest rate environment
The Company reported net income of $6.0 million, or $0.18 per
diluted share, in the first quarter 2022 compared to $7.8 million,
or $0.23 per diluted share, in the first quarter
2021.
"We are pleased to report that we have started 2022 with solid
results for the first quarter of the year,” 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 first quarter 2022, excluding the expected run-off of
PPP loans. Our credit quality remains strong and we had no
commercial loan chargeoffs during the first quarter 2022,
contributing to a provision for loan loss benefit of $1.5 million
for the quarter. Other fee income including wealth management fees,
debit card interchange income and treasury management fees
continued at healthy levels, offsetting much of the reduction in
mortgage gains while total non-interest expenses were up only
slightly in the first quarter 2022 compared to the same period in
the prior year, despite significant inflationary
pressures.”
“Through measured growth of our investment portfolio, we further
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 $47.6 million in
the first quarter 2022.”
Mr. Haan concluded: "Despite a challenging environment, we
produced strong results for the first quarter of 2022. We believe
the solid loan growth achieved in this first quarter reflects
encouraging signs about our loan growth prospects for the rest of
the year. Further, we have managed our balance sheet to be
asset-sensitive, and as such are very well-positioned to benefit
from the rising interest rate environment that began late in the
first quarter 2022 and is expected to accelerate in the second
quarter. We look forward to building on our first quarter momentum
and seizing more opportunities to strategically deploy the excess
funds our customers have entrusted us with into both loans and
investment securities.”
Operating ResultsNet interest
income for the first quarter 2022 totaled $12.7 million, a decrease
of $161,000 from the fourth quarter 2021 and a decrease of $1.8
million from the first quarter 2021. Net interest margin for the
first quarter 2022 was 1.85 percent, unchanged from the fourth
quarter 2021, and down 48 basis points from the first quarter 2021.
Net interest income for the first quarter 2022 reflected
amortization of $1.0 million in fees from loans originated under
the PPP, compared to $1.2 million in the fourth quarter 2021 and
$2.0 million in the first quarter 2021. These fees are amortized
over the loans’ contractual maturity, which is 24 months or 60
months, as applicable. Upon Small Business Administration ("SBA")
forgiveness, the remaining unamortized fees are recognized into
interest income. During the first quarter 2022, the Company
approved and received forgiveness disbursements from the SBA on 175
loans with balances totaling $35.5 million. In the fourth quarter
2021, the Company approved and received forgiveness disbursements
from the SBA on 245 loans with balances totaling $36.7 million.
During the first quarter 2021, the Company approved and received
forgiveness disbursements from the SBA on 573 loans with balances
totaling $71.7 million. There were $280,000 in net deferred PPP
fees remaining as of March 31, 2022. Net interest margin was
further negatively impacted in the first quarter 2022 versus the
first quarter 2021 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 earned only 19 basis points in interest during the first
quarter 2022, increased by $306.3 million, on average, from the
first quarter 2021 and caused a 36 basis point decrease in net
interest margin in the first quarter 2022 compared to first 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 saves 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 $381,000 in the first quarter 2022
compared to the fourth quarter 2021 and decreased $1.6 million from
the first quarter 2021. Gains on sales of mortgage loans in the
first quarter 2022 were down $206,000 compared to the fourth
quarter 2021 and were down $1.7 million from the first quarter
2021. The Company originated $10.1 million in mortgage loans for
sale in the first quarter 2022 compared to $16.4 million in the
fourth quarter 2021 and $47.3 million in the first quarter 2021.
Deposit service charge income was up $5,000 in the first quarter
2022 compared to the fourth quarter 2021 and was up $219,000 from
the first quarter 2021. Other noninterest income was down $180,000
compared to the fourth quarter 2021 and was down $86,000 from the
first quarter 2021.
Non-interest expense was $11.7 million for the first quarter
2022, compared to $11.3 million for the fourth quarter 2021 and
$11.5 million for the first quarter 2021. The largest component of
non-interest expense was salaries and benefit expenses. Salaries
and benefit expenses were up $265,000 compared to the fourth
quarter 2021 and were down $123,000 compared to the first quarter
2021. The increase compared to the fourth quarter 2021 was due
primarily to a higher level of medical insurance costs and 401k
matching contributions and the decrease from the first quarter 2021
was due largely to a lower level of commissions from mortgage
production as volume decreased. The table below identifies the
primary components of the changes in salaries and benefits between
periods.
Dollars in 000s |
|
Q1 2022toQ4 2021 |
|
Q1 2022toQ1 2021 |
|
|
|
|
|
|
Salaries and other compensation |
|
$ |
70 |
|
|
$ |
(132 |
) |
Salary deferral from commercial
loans |
|
|
22 |
|
|
|
138 |
|
Bonus accrual |
|
|
(211 |
) |
|
|
39 |
|
Mortgage production – variable
comp |
|
|
(3 |
) |
|
|
(191 |
) |
401k matching contributions |
|
|
127 |
|
|
|
85 |
|
Medical insurance costs |
|
|
260 |
|
|
|
(62 |
) |
Total change in salaries and benefits |
|
$ |
265 |
|
|
$ |
(123 |
) |
|
|
|
|
|
|
|
|
|
Occupancy expenses were up $209,000 in the first quarter 2022
compared to the fourth quarter 2021 and were up $135,000 compared
to the first quarter 2021, primarily due to higher snow removal
expenses incurred in the first quarter 2022. FDIC assessment
expense was $180,000 in the first quarter 2022 compared to $217,000
in the fourth quarter 2021 and $170,000 in the first quarter 2021.
FDIC assessment expense is impacted by changes in deposit balances
between periods. Legal and professional fees were down $80,000 in
the first quarter 2022 compared to the fourth quarter 2021 and were
down $24,000 compared to the first quarter 2021. Data processing
expenses were up $29,000 in the first quarter 2022 compared to the
fourth quarter 2021 and were down $24,000 compared to the first
quarter 2021. Other categories of non-interest expense were
relatively flat compared to the fourth quarter 2021 and the first
quarter 2021 due to a continued focus on expense
management.
Federal income tax expense was $1.4 million for the first
quarter 2022, $1.4 million for the fourth quarter 2021, and $1.8
million for the first quarter 2021. The effective tax rate was 18.8
percent for the first quarter 2022, compared to 18.0 percent for
the fourth quarter 2021 and 18.5 percent for the first quarter
2021.
Asset QualityA provision for loan losses
benefit of $1.5 million was recorded in the first quarter 2022
compared to provision benefit of $750,000 in the fourth quarter
2021 and no provision taken in the first quarter 2021. Net loan
recoveries for the first quarter 2022 were $227,000, compared to
fourth quarter 2021 net loan recoveries of $107,000 and first
quarter 2021 net loan recoveries of $44,000. At March 31, 2022, the
Company had experienced net loan recoveries in twenty-seven of the
past twenty-nine quarters. Total loans past due on
payments by 30 days or more amounted to $171,000 at March 31, 2022,
up $42,000 from $129,000 at December 31, 2021 and down $46,000 from
$217,000 at March 31, 2021. Delinquencies at March 31, 2022 were
comprised of just three individual loans. Delinquency as a
percentage of total loans was just 0.02 percent at March 31, 2022,
well below the Company’s peer level.
The allowance for loan losses of $14.6 million was 1.33 percent
of total loans at March 31, 2022, compared to $15.9 million or 1.43
percent of total loans at December 31, 2021, and $17.5 million or
1.26 percent at March 31, 2021. The ratio at March 31, 2022,
December 31, 2021 and March 31, 2021 includes PPP loans, which are
fully guaranteed by the SBA and receive no allowance allocation.
The ratio excluding PPP loans was 1.34 percent at March 31, 2022,
1.49 percent at December 31, 2021 and 1.55 percent at March 31,
2021. The coverage ratio of allowance for loan losses to
nonperforming loans continued to be strong and significantly
exceeded 1-to-1 coverage at 162-to-1 as of March 31, 2022.
At March 31, 2022, the Company's nonperforming loans were
$90,000, representing 0.01 percent of total loans. This compares to
$92,000 (0.01 percent of total loans) at December 31, 2021 and
$525,000 (0.04 percent of total loans) at March 31, 2021. Other
real estate owned and repossessed assets were $2.3 million at March
31, 2022, compared to $2.3 million at December 31, 2021 and $2.4
million at March 31, 2021. Total non-performing assets, including
other real estate owned and nonperforming loans, were $2.4 million,
or 0.08 percent of total assets, at March 31, 2022. Total
nonperforming assets, including other real estate owned and
nonperforming loans, decreased by $463,000 from March 31, 2021 to
March 31, 2022.
A break-down of non-performing loans is shown in the table
below.
Dollars in 000s |
|
Mar 31,2022 |
|
Dec 31,2021 |
|
Sept 30,2021 |
|
June 30,2021 |
|
Mar 31,2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate |
|
$ |
5 |
|
|
$ |
5 |
|
|
$ |
332 |
|
|
$ |
341 |
|
|
$ |
432 |
|
Commercial and Industrial |
|
|
1 |
|
|
|
1 |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Total Commercial Loans |
|
|
6 |
|
|
|
6 |
|
|
|
332 |
|
|
|
341 |
|
|
|
432 |
|
Residential Mortgage Loans |
|
|
84 |
|
|
|
86 |
|
|
|
88 |
|
|
|
92 |
|
|
|
93 |
|
Consumer Loans |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Total Non-Performing Loans |
|
$ |
90 |
|
|
$ |
92 |
|
|
$ |
420 |
|
|
$ |
433 |
|
|
$ |
525 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A break-down of non-performing assets is shown in the table
below.
Dollars in 000s |
|
Mar 31,2022 |
|
Dec 31,2021 |
|
Sept 30,2021 |
|
June 30,2021 |
|
Mar 31,2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Performing Loans |
|
$ |
90 |
|
|
$ |
92 |
|
|
$ |
420 |
|
|
$ |
433 |
|
|
$ |
525 |
|
Other Repossessed Assets |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Other Real Estate Owned |
|
|
2,343 |
|
|
|
2,343 |
|
|
|
2,343 |
|
|
|
2,343 |
|
|
|
2,371 |
|
Total Non-Performing Assets |
|
$ |
2,433 |
|
|
$ |
2,435 |
|
|
$ |
2,763 |
|
|
$ |
2,776 |
|
|
$ |
2,896 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet, Liquidity and Capital
Total assets were $2.93 billion at March 31, 2022, an increase
of $1.1 million from $2.93 billion at December 31, 2021 and an
increase of $195.5 million from $2.73 billion at March 31, 2021.
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 $1.10 billion at
March 31, 2022, a decrease of $7.1 million from $1.11 billion at
December 31, 2021 and a decrease of $281.0 million from $1.38
billion at March 31, 2021.
Commercial loans decreased by $254.1 million from March 31, 2021
to March 31, 2022, along with a decrease of $25.4 million in the
residential mortgage portfolio, and a decrease of $1.5 million in
the consumer loan portfolio. Within commercial loans, commercial
real estate loans decreased by $18.3 million and commercial and
industrial loans decreased by $235.8 million. However, the largest
decrease in commercial loans was in PPP loans which decreased by
$246.4 million due to forgiveness by the SBA. Excluding PPP loans,
total commercial loans increased by $30.7 million during the first
quarter 2022. The loan growth experienced in this quarter is the
direct result of both new loan prospecting efforts and existing
customers beginning to borrow more for expansion of their
businesses as pandemic risks to economic conditions decrease.
The composition of the commercial loan portfolio is shown in the
table below:
Dollars in 000s |
|
Mar 31,2022 |
|
Dec 31,2021 |
|
Sept 30,2021 |
|
June 30,2021 |
|
Mar 31,2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and Development |
|
$ |
104,945 |
|
|
$ |
103,755 |
|
|
$ |
104,636 |
|
|
$ |
102,608 |
|
|
$ |
117,178 |
|
Other Commercial Real Estate |
|
|
417,368 |
|
|
|
412,346 |
|
|
|
422,574 |
|
|
|
427,291 |
|
|
|
423,424 |
|
Commercial Loans Securedby Real Estate |
|
|
522,313 |
|
|
|
516,101 |
|
|
|
527,210 |
|
|
|
529,899 |
|
|
|
540,602 |
|
Commercial and Industrial |
|
|
402,854 |
|
|
|
378,318 |
|
|
|
356,812 |
|
|
|
359,846 |
|
|
|
392,208 |
|
Paycheck Protection Program |
|
|
7,393 |
|
|
|
41,939 |
|
|
|
77,571 |
|
|
|
169,679 |
|
|
|
253,811 |
|
Total Commercial Loans |
|
$ |
932,560 |
|
|
$ |
936,358 |
|
|
$ |
961,593 |
|
|
$ |
1,059,424 |
|
|
$ |
1,186,621 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank owned life insurance was $52.7 million at March 31, 2022,
up $252,000 from $52.5 million at December 31, 2021 and up $10.5
million from $42.2 million at March 31, 2021 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 March 31, 2022, up $4.3
million, or 0.2 percent, from $2.58 billion at December 31, 2021
and up $194.4 million, or 8.1 percent, from $2.39 billion at March
31, 2021. Demand deposits were down $25.3 million in the first
quarter 2022 compared to the fourth quarter 2021 and were up $134.2
million compared to the first quarter 2021. Money market deposits
and savings deposits were up $33.6 million from the fourth quarter
2021 and were up $259.8 million from the first quarter 2021.
Certificates of deposit were down $3.9 million at March 31, 2022
compared to December 31, 2021 and were down $16.9 million compared
to March 31, 2021 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 March 31, 2022 were
unchanged compared to $85.0 million at December 31, 2021 and were
up $15.0 million compared to $70.0 million at March 31, 2021. The
increase from the first quarter 2021 was due to an additional $25.0
million advance taken in the third quarter 2021, partially offset
by the maturity of a $10.0 million advance in the first quarter
2022. This $25.0 million advance was putable quarterly by the FHLB
and carried a rate of 0.01%. Considering the additional dividend
provided by the FHLB on activity based stock, this advance
effectively carried 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 and was replaced by a similar advance carrying
a rate of 0.05%. This advance also had a put option
that was executed by the FHLB, and the Company repaid the advance
in full as required on April 21, 2022.
Long-term debt decreased by $20.6 million from March 31, 2021 to
March 31, 2022 due to the redemption of the Company’s remaining
$20.6 million trust preferred securities on July 7, 2021. The
Company had no long-term debt remaining at March 31, 2022.
The Company's total risk-based regulatory capital ratio at March
31, 2022 was consistent with the ratio at December 31, 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 March
31, 2022.
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,
2021. 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) |
|
|
|
|
|
|
|
|
|
1st
Qtr |
|
4th
Qtr |
|
1st
Qtr |
EARNINGS SUMMARY |
|
2022 |
|
2021 |
|
2021 |
Total interest income |
|
$ |
13,143 |
|
|
$ |
13,334 |
|
|
$ |
15,274 |
|
Total interest expense |
|
|
478 |
|
|
|
508 |
|
|
|
784 |
|
Net interest income |
|
|
12,665 |
|
|
|
12,826 |
|
|
|
14,490 |
|
Provision for loan losses |
|
|
(1,500 |
) |
|
|
(750 |
) |
|
|
- |
|
Net interest income after provision for loan losses |
|
|
14,165 |
|
|
|
13,576 |
|
|
|
14,490 |
|
|
|
|
|
|
|
|
NON-INTEREST INCOME |
|
|
|
|
|
|
Deposit service charges |
|
|
1,211 |
|
|
|
1,206 |
|
|
|
992 |
|
Net gains on mortgage loans |
|
|
308 |
|
|
|
514 |
|
|
|
2,015 |
|
Trust fees |
|
|
1,088 |
|
|
|
1,114 |
|
|
|
1,005 |
|
Other |
|
|
2,358 |
|
|
|
2,512 |
|
|
|
2,527 |
|
Total non-interest income |
|
|
4,965 |
|
|
|
5,346 |
|
|
|
6,539 |
|
|
|
|
|
|
|
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
Salaries and benefits |
|
|
6,289 |
|
|
|
6,024 |
|
|
|
6,412 |
|
Occupancy |
|
|
1,172 |
|
|
|
963 |
|
|
|
1,037 |
|
Furniture and equipment |
|
|
1,016 |
|
|
|
1,011 |
|
|
|
937 |
|
FDIC assessment |
|
|
180 |
|
|
|
217 |
|
|
|
170 |
|
Other |
|
|
3,082 |
|
|
|
3,122 |
|
|
|
2,929 |
|
Total non-interest expense |
|
|
11,739 |
|
|
|
11,337 |
|
|
|
11,485 |
|
Income before income tax |
|
|
7,391 |
|
|
|
7,585 |
|
|
|
9,544 |
|
Income tax expense |
|
|
1,391 |
|
|
|
1,369 |
|
|
|
1,766 |
|
Net income |
|
$ |
6,000 |
|
|
$ |
6,216 |
|
|
$ |
7,778 |
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
$ |
0.23 |
|
Diluted earnings per common share |
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
$ |
0.23 |
|
Return on average assets |
|
|
0.82 |
% |
|
|
0.85 |
% |
|
|
1.17 |
% |
Return on average equity |
|
|
9.54 |
% |
|
|
9.84 |
% |
|
|
12.91 |
% |
Net interest margin (fully taxable equivalent) |
|
|
1.85 |
% |
|
|
1.85 |
% |
|
|
2.33 |
% |
Efficiency ratio |
|
|
66.59 |
% |
|
|
62.39 |
% |
|
|
54.62 |
% |
|
|
|
|
|
|
|
BALANCE SHEET DATA |
|
March
31 |
|
December
31 |
March
31 |
Assets |
|
2022 |
|
2021 |
|
2021 |
Cash and due from banks |
|
$ |
31,957 |
|
|
$ |
23,669 |
|
|
$ |
26,900 |
|
Federal funds sold and other short-term investments |
|
|
1,078,983 |
|
|
|
1,128,119 |
|
|
|
884,985 |
|
Debt securities available for sale |
|
|
346,114 |
|
|
|
416,063 |
|
|
|
233,672 |
|
Debt securities held to maturity |
|
|
254,565 |
|
|
|
137,003 |
|
|
|
89,170 |
|
Federal Home Loan Bank Stock |
|
|
10,211 |
|
|
|
11,558 |
|
|
|
11,558 |
|
Loans held for sale |
|
|
855 |
|
|
|
1,407 |
|
|
|
9,315 |
|
Total loans |
|
|
1,101,902 |
|
|
|
1,108,993 |
|
|
|
1,382,951 |
|
Less allowance for loan loss |
|
|
14,616 |
|
|
|
15,889 |
|
|
|
17,452 |
|
Net loans |
|
|
1,087,286 |
|
|
|
1,093,104 |
|
|
|
1,365,499 |
|
Premises and equipment, net |
|
|
41,413 |
|
|
|
41,773 |
|
|
|
43,113 |
|
Bank-owned life insurance |
|
|
52,720 |
|
|
|
52,468 |
|
|
|
42,244 |
|
Other real estate owned |
|
|
2,343 |
|
|
|
2,343 |
|
|
|
2,371 |
|
Other assets |
|
|
23,436 |
|
|
|
21,244 |
|
|
|
25,514 |
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
2,929,883 |
|
|
$ |
2,928,751 |
|
|
$ |
2,734,341 |
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
Noninterest-bearing deposits |
|
$ |
918,907 |
|
|
$ |
886,115 |
|
|
$ |
848,798 |
|
Interest-bearing deposits |
|
|
1,663,390 |
|
|
|
1,691,843 |
|
|
|
1,539,147 |
|
Total deposits |
|
|
2,582,297 |
|
|
|
2,577,958 |
|
|
|
2,387,945 |
|
Other borrowed funds |
|
|
85,000 |
|
|
|
85,000 |
|
|
|
70,000 |
|
Long-term debt |
|
|
- |
|
|
|
- |
|
|
|
20,619 |
|
Other liabilities |
|
|
16,984 |
|
|
|
11,788 |
|
|
|
13,398 |
|
Total Liabilities |
|
|
2,684,281 |
|
|
|
2,674,746 |
|
|
|
2,491,962 |
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
245,602 |
|
|
|
254,005 |
|
|
|
242,379 |
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
|
$ |
2,929,883 |
|
|
$ |
2,928,751 |
|
|
$ |
2,734,341 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MACATAWA
BANK CORPORATION |
SELECTED
CONSOLIDATED FINANCIAL DATA |
(Unaudited) |
(Dollars in thousands except per share information) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly |
|
|
|
|
|
|
|
|
|
|
|
|
|
1st
Qtr |
|
4th
Qtr |
|
3rd
Qtr |
|
2nd
Qtr |
|
1st
Qtr |
|
|
2022 |
|
2021 |
|
2021 |
|
2021 |
|
2021 |
EARNINGS SUMMARY |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
12,665 |
|
|
$ |
12,826 |
|
|
$ |
14,296 |
|
|
$ |
14,457 |
|
|
$ |
14,490 |
|
Provision
for loan losses |
|
|
(1,500 |
) |
|
|
(750 |
) |
|
|
(550 |
) |
|
|
(750 |
) |
|
|
- |
|
Total
non-interest income |
|
|
4,965 |
|
|
|
5,346 |
|
|
|
5,642 |
|
|
|
6,169 |
|
|
|
6,539 |
|
Total
non-interest expense |
|
|
11,739 |
|
|
|
11,337 |
|
|
|
11,550 |
|
|
|
11,718 |
|
|
|
11,485 |
|
Federal
income tax expense |
|
|
1,391 |
|
|
|
1,369 |
|
|
|
1,736 |
|
|
|
1,840 |
|
|
|
1,766 |
|
Net
income |
|
$ |
6,000 |
|
|
$ |
6,216 |
|
|
$ |
7,202 |
|
|
$ |
7,818 |
|
|
$ |
7,778 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share |
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
$ |
0.21 |
|
|
$ |
0.23 |
|
|
$ |
0.23 |
|
Diluted
earnings per common share |
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
$ |
0.21 |
|
|
$ |
0.23 |
|
|
$ |
0.23 |
|
|
|
|
|
|
|
|
|
|
|
|
MARKET DATA |
|
|
|
|
|
|
|
|
|
|
Book value
per common share |
|
$ |
7.17 |
|
|
$ |
7.41 |
|
|
$ |
7.38 |
|
|
$ |
7.26 |
|
|
$ |
7.09 |
|
Tangible
book value per common share |
|
$ |
7.17 |
|
|
$ |
7.41 |
|
|
$ |
7.38 |
|
|
$ |
7.26 |
|
|
$ |
7.09 |
|
Market value
per common share |
|
$ |
9.01 |
|
|
$ |
8.82 |
|
|
$ |
8.03 |
|
|
$ |
8.75 |
|
|
$ |
9.95 |
|
Average
basic common shares |
|
|
34,254,772 |
|
|
|
34,229,664 |
|
|
|
34,190,264 |
|
|
|
34,193,016 |
|
|
|
34,195,526 |
|
Average
diluted common shares |
|
|
34,254,772 |
|
|
|
34,229,664 |
|
|
|
34,190,264 |
|
|
|
34,193,016 |
|
|
|
34,195,526 |
|
Period end
common shares |
|
|
34,253,962 |
|
|
|
34,259,945 |
|
|
|
34,189,799 |
|
|
|
34,192,317 |
|
|
|
34,193,132 |
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS |
|
|
|
|
|
|
|
|
|
|
Return on
average assets |
|
|
0.82 |
% |
|
|
0.85 |
% |
|
|
0.98 |
% |
|
|
1.11 |
% |
|
|
1.17 |
% |
Return on
average equity |
|
|
9.54 |
% |
|
|
9.84 |
% |
|
|
11.52 |
% |
|
|
12.79 |
% |
|
|
12.91 |
% |
Net interest
margin (fully taxable equivalent) |
|
|
1.85 |
% |
|
|
1.85 |
% |
|
|
2.04 |
% |
|
|
2.19 |
% |
|
|
2.33 |
% |
Efficiency
ratio |
|
|
66.59 |
% |
|
|
62.39 |
% |
|
|
57.93 |
% |
|
|
56.81 |
% |
|
|
54.62 |
% |
Full-time
equivalent employees (period end) |
|
|
311 |
|
|
|
311 |
|
|
|
318 |
|
|
|
321 |
|
|
|
327 |
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY |
|
|
|
|
|
|
|
|
|
|
Gross
charge-offs |
|
$ |
35 |
|
|
$ |
22 |
|
|
$ |
22 |
|
|
$ |
30 |
|
|
$ |
50 |
|
Net
charge-offs/(recoveries) |
|
$ |
(227 |
) |
|
$ |
(107 |
) |
|
$ |
(276 |
) |
|
$ |
(104 |
) |
|
$ |
(44 |
) |
Net
charge-offs to average loans (annualized) |
|
|
-0.08 |
% |
|
|
-0.04 |
% |
|
|
-0.09 |
% |
|
|
-0.03 |
% |
|
|
-0.01 |
% |
Nonperforming loans |
|
$ |
90 |
|
|
$ |
92 |
|
|
$ |
420 |
|
|
$ |
433 |
|
|
$ |
525 |
|
Other real
estate and repossessed assets |
|
$ |
2,343 |
|
|
$ |
2,343 |
|
|
$ |
2,343 |
|
|
$ |
2,343 |
|
|
$ |
2,371 |
|
Nonperforming loans to total loans |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.04 |
% |
|
|
0.03 |
% |
|
|
0.04 |
% |
Nonperforming assets to total assets |
|
|
0.08 |
% |
|
|
0.08 |
% |
|
|
0.10 |
% |
|
|
0.09 |
% |
|
|
0.11 |
% |
Allowance
for loan losses |
|
$ |
14,616 |
|
|
$ |
15,889 |
|
|
$ |
16,532 |
|
|
$ |
16,806 |
|
|
$ |
17,452 |
|
Allowance
for loan losses to total loans |
|
|
1.33 |
% |
|
|
1.43 |
% |
|
|
1.45 |
% |
|
|
1.36 |
% |
|
|
1.26 |
% |
Allowance for loan losses to total loans (excluding PPP loans) |
|
1.34 |
% |
|
|
1.49 |
% |
|
|
1.56 |
% |
|
|
1.57 |
% |
|
|
1.55 |
% |
Allowance
for loan losses to nonperforming loans |
|
|
16240.00 |
% |
|
|
17270.65 |
% |
|
|
3936.19 |
% |
|
|
3881.29 |
% |
|
|
3324.19 |
% |
|
|
|
|
|
|
|
|
|
|
|
CAPITAL |
|
|
|
|
|
|
|
|
|
|
Average
equity to average assets |
|
|
8.62 |
% |
|
|
8.66 |
% |
|
|
8.48 |
% |
|
|
8.70 |
% |
|
|
9.04 |
% |
Common
equity tier 1 to risk weighted assets (Consolidated) |
|
|
16.92 |
% |
|
|
17.24 |
% |
|
|
17.43 |
% |
|
|
17.10 |
% |
|
|
16.73 |
% |
Tier 1
capital to average assets (Consolidated) |
|
|
8.82 |
% |
|
|
8.72 |
% |
|
|
8.51 |
% |
|
|
9.48 |
% |
|
|
9.80 |
% |
Total
capital to risk-weighted assets (Consolidated) |
|
|
17.88 |
% |
|
|
18.32 |
% |
|
|
18.58 |
% |
|
|
19.66 |
% |
|
|
19.33 |
% |
Common
equity tier 1 to risk weighted assets (Bank) |
|
|
16.39 |
% |
|
|
16.70 |
% |
|
|
16.88 |
% |
|
|
16.57 |
% |
|
|
17.60 |
% |
Tier 1
capital to average assets (Bank) |
|
|
8.55 |
% |
|
|
8.44 |
% |
|
|
8.24 |
% |
|
|
8.49 |
% |
|
|
9.52 |
% |
Total
capital to risk-weighted assets (Bank) |
|
|
17.35 |
% |
|
|
17.77 |
% |
|
|
18.02 |
% |
|
|
17.73 |
% |
|
|
18.81 |
% |
Common
equity to assets |
|
|
8.38 |
% |
|
|
8.67 |
% |
|
|
8.69 |
% |
|
|
8.44 |
% |
|
|
8.87 |
% |
Tangible
common equity to assets |
|
|
8.38 |
% |
|
|
8.67 |
% |
|
|
8.69 |
% |
|
|
8.44 |
% |
|
|
8.87 |
% |
|
|
|
|
|
|
|
|
|
|
|
END
OF PERIOD BALANCES |
|
|
|
|
|
|
|
|
|
|
Total
portfolio loans |
|
$ |
1,101,902 |
|
|
$ |
1,108,993 |
|
|
$ |
1,136,613 |
|
|
$ |
1,238,327 |
|
|
$ |
1,382,951 |
|
Earning
assets |
|
|
1,701,699 |
|
|
|
2,803,853 |
|
|
|
2,768,507 |
|
|
|
2,803,634 |
|
|
|
2,611,093 |
|
Total
assets |
|
|
2,929,883 |
|
|
|
2,928,751 |
|
|
|
2,901,500 |
|
|
|
2,941,086 |
|
|
|
2,734,341 |
|
Deposits |
|
|
2,582,297 |
|
|
|
2,577,958 |
|
|
|
2,553,175 |
|
|
|
2,600,076 |
|
|
|
2,387,945 |
|
Total
shareholders' equity |
|
|
245,602 |
|
|
|
254,005 |
|
|
|
252,213 |
|
|
|
248,217 |
|
|
|
242,379 |
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES |
|
|
|
|
|
|
|
|
|
|
Total
portfolio loans |
|
$ |
1,092,673 |
|
|
$ |
1,109,863 |
|
|
$ |
1,182,633 |
|
|
$ |
1,324,915 |
|
|
$ |
1,401,399 |
|
Earning
assets |
|
|
2,788,254 |
|
|
|
2,780,236 |
|
|
|
2,804,157 |
|
|
|
2,669,862 |
|
|
|
2,537,300 |
|
Total
assets |
|
|
2,917,462 |
|
|
|
2,917,569 |
|
|
|
2,948,664 |
|
|
|
2,809,487 |
|
|
|
2,666,802 |
|
Deposits |
|
|
2,569,315 |
|
|
|
2,564,961 |
|
|
|
2,605,043 |
|
|
|
2,468,398 |
|
|
|
2,321,012 |
|
Total
shareholders' equity |
|
|
251,600 |
|
|
|
252,606 |
|
|
|
249,994 |
|
|
|
244,516 |
|
|
|
241,023 |
|
|
|
|
|
|
|
|
|
|
|
|
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