Macatawa Bank Corporation (NASDAQ: MCBC), the holding company for
Macatawa Bank (collectively, the “Company”), today announced its
results for the third quarter 2022.
- Net income of $10.0 million in third quarter 2022 – up 53%
versus $6.6 million in second quarter 2022 and up 39% versus $7.2
million in third quarter 2021
- Net interest income of $19.8 million in third quarter 2022
versus $14.8 million in second quarter 2022 and $14.3 million in
third quarter 2021
- Net interest margin increased 67 basis points to 2.86% in third
quarter 2022 versus second quarter 2022
- Strong credit metrics and net loan recoveries resulted in no
provision for loan losses for third quarter 2022
- Continued loan portfolio growth – nearly 11% annualized growth
rate, excluding PPP loans, for the third quarter 2022
- Grew investment securities portfolio by $14.9 million in third
quarter 2022 to supplement loan growth and continue strategic
deployment of excess liquidity
- Deposit portfolio balances remained near all-time highs
achieved during pandemic surge
The Company reported net income of $10.0 million, or $0.29 per
diluted share, in third quarter 2022 compared to $7.2 million, or
$0.21 per diluted share, in third quarter 2021. For the
first nine months of 2022, the Company reported net income of $22.6
million, or $0.66 per diluted share, compared to $22.8 million, or
$0.67 per diluted share, for the same period in 2021.
"We are pleased to report strong profitability for the third
quarter of the year,” said Ronald L. Haan, President and CEO of the
Company. “Our strategy of maintaining an asset-sensitive balance
sheet is paying off in this rising rate environment. Net interest
income for the third quarter 2022 was $4.9 million higher than the
second quarter 2022 and $5.5 million higher than in the third
quarter 2021 reflecting benefits from federal funds rate increases
and growth in our loan and investment securities portfolios. Net
interest income in the 2021 periods included high levels of fee
income from PPP loans, which were mostly forgiven by the end of
2021. We remain encouraged by our commercial loan origination
activity and pipeline of new loan opportunities while maintaining
strong credit quality. Deposit levels also remain strong, growing
during the third quarter 2022 by $61.6 million. Total deposit
balances at the end of the quarter were consistent with the level
of balances a year ago at the same time, showing no signs of
significant runoff of the surge in deposits we experienced during
the pandemic. These deposit levels continue to provide
opportunities to grow loan and investment portfolio balances to
further enhance earnings.”
Mr. Haan concluded: "Consistent loan demand and rising interest
rates should continue to provide a catalyst for strong revenue
growth as we close out 2022. We believe that our balance sheet is
very well-positioned to deliver further improvement in operating
performance into 2023. High inflation and higher interest rates may
result in additional pressure on the economy. The months ahead will
undoubtedly present new challenges, and we remain committed to
keeping a diligent eye on an ever-changing operating
environment.”
Operating ResultsNet interest
income for the third quarter 2022 totaled $19.8 million, an
increase of $4.9 million from second quarter 2022 and an increase
of $5.5 million from the third quarter 2021. Net interest margin
for third quarter 2022 was 2.86 percent, up 67 basis points from
the second quarter 2022 and up 82 basis points from the third
quarter 2021. Net interest income for the third quarter 2022
reflected just $94,000 in interest and fees from loans originated
under the PPP, compared to $199,000 in second quarter 2022 and $3.1
million in third quarter 2021. There was just one PPP loan
remaining at September 30, 2022. Net interest income benefited in
the third quarter 2022 versus the second quarter 2022 and third
quarter 2021 from the significant increases in the federal funds
rate beginning in March 2022 and through September 2022 totaling
300 basis points and the related increases in rate indices
impacting the Company’s variable rate loan portfolios. Interest on
federal funds increased by $2.9 million compared to second quarter
2022 and by $4.2 million compared to third quarter 2021. Net
interest income also benefited from growth in the investment
securities portfolio to further deploy excess liquid funds held by
the Company. Interest on investments increased by $671,000 over
second quarter 2022 and by $2.4 million over third quarter
2021.
Non-interest income was negatively impacted by the rising
interest rate environment as secondary mortgage market volume and
trust fee income decreased. Non-interest income decreased $242,000
in third quarter 2022 compared to second quarter 2022 and decreased
$753,000 from third quarter 2021. Gains on sales of mortgage loans
in third quarter 2022 were down $33,000 compared to second quarter
2022 and were down $685,000 from third quarter 2021. The Company
originated $6.5 million in mortgage loans for sale in third quarter
2022 compared to $8.4 million in second quarter 2022 and $21.3
million in third quarter 2021. Trust fees were down $127,000 in
third quarter 2022 compared to second quarter 2022 and were down
$110,000 compared to third quarter 2021, due largely to stock
market conditions. Income from debit and credit cards was down
$38,000 in third quarter 2022 compared to second quarter 2022 and
was up $48,000 compared to third quarter 2021. Deposit service
charge income, including treasury management fees, was up $45,000
in third quarter 2022 compared to second quarter 2022 and was up
$80,000 from third quarter 2021.
Non-interest expense was $12.1 million for third quarter 2022,
compared to $11.9 million for second quarter 2022 and $11.6 million
for third quarter 2021. The largest component of non-interest
expense was salaries and benefits expenses. Salaries and benefits
expenses were up $237,000 compared to second quarter 2022 and were
up $362,000 compared to third quarter 2021. The increase compared
to second quarter 2022 was primarily due to a higher level of
salaries and other compensation, bonus expense and medical
insurance costs, while the increase from third quarter 2021 was due
largely to a higher level of salary and other compensation
resulting from merit adjustments to base pay effective April 1,
2022, a higher level of 401k matching contributions and a higher
level of medical insurance costs, partially offset by lower
mortgage sales commissions. The table below identifies the primary
components of the changes in salaries and benefits between
periods.
Dollars
in 000s |
|
Q3 2022toQ2 2022 |
|
Q3 2022toQ3 2021 |
|
|
|
|
|
|
Salaries and other compensation |
|
$ |
106 |
|
|
$ |
171 |
|
Salary
deferral from commercial loans |
|
|
8 |
|
|
|
(7 |
) |
Bonus
accrual |
|
|
124 |
|
|
|
55 |
|
Mortgage
production – variable comp |
|
|
(50 |
) |
|
|
(96 |
) |
401k
matching contributions |
|
|
(1 |
) |
|
|
89 |
|
Medical
insurance costs |
|
|
50 |
|
|
|
150 |
|
Total change in salaries and benefits |
|
$ |
237 |
|
|
$ |
362 |
|
Occupancy expenses were down $83,000 in third quarter 2022
compared to second quarter 2022 and were down $4,000 compared to
third quarter 2021. Data processing expenses were up $60,000 in
third quarter 2022 compared to second quarter 2022 and were up
$144,000 compared to third quarter 2021 due to higher usage of
electronic banking services and debit cards by our customers. Other
categories of non-interest expense were relatively flat compared to
second quarter 2022 and third quarter 2021 due to a continued focus
on expense management.
Federal income tax expense was $2.5 million for third quarter
2022, $1.5 million for second quarter 2022, and $1.7 million for
third quarter 2021. The effective tax rate was 19.9 percent for
third quarter 2022, compared to 18.5 percent for second quarter
2022 and 19.4 percent for third quarter 2021. The increase in the
effective tax rate was due to higher levels of taxable income from
both growth in taxable securities held in our investment portfolio
and growth in taxable income from rising interest rates while our
tax-exempt income has remained relatively flat.
Asset QualityNo provision for loan losses was
recorded in third quarter 2022 or in second quarter 2022 while a
provision benefit of $550,000 was recorded in third quarter 2021.
Net loan recoveries for third quarter 2022 were $190,000, compared
to second quarter 2022 net loan recoveries of $15,000 and third
quarter 2021 net loan recoveries of $276,000. At September 30,
2022, the Company had experienced net loan recoveries in
twenty-nine of the past thirty-one quarters. Total
loans past due on payments by 30 days or more amounted to $84,000
at September 30, 2022, versus $197,000 at June 30, 2022 and
$437,000 at September 30, 2021. Delinquencies at September 30, 2022
were comprised of just one individual loan. Delinquency as a
percentage of total loans was just 0.01 percent at September 30,
2022, well below the Company’s peer level.
The allowance for loan losses of $14.8 million was 1.30 percent
of total loans at September 30, 2022, compared to $14.6 million or
1.32 percent of total loans at June 30, 2022, and $16.5 million or
1.45 percent at September 30, 2021. The ratio excluding PPP loans
was 1.30 percent at September 30, 2022, 1.32 percent at June 30,
2022 and 1.56 percent at September 30, 2021. The coverage ratio of
allowance for loan losses to nonperforming loans continued to be
strong and significantly exceeded 1-to-1 coverage at 174-to-1 as of
September 30, 2022.
At September 30, 2022, the Company's nonperforming loans were
$85,000, representing 0.01 percent of total loans. This compares to
$90,000 (0.01 percent of total loans) at September 30, 2022 and
$420,000 (0.04 percent of total loans) at September 30, 2021. Other
real estate owned and repossessed assets were $2.3 million at
September 30, 2022, June 30, 2022 and September 30, 2021. Total
non-performing assets, including other real estate owned and
nonperforming loans, were $2.4 million, or 0.09 percent of total
assets, at September 30, 2022. Total nonperforming assets,
including other real estate owned and nonperforming loans,
decreased by $335,000 from September 30, 2021 to September 30,
2022.
A break-down of non-performing loans is shown in the table
below.
Dollars in 000s |
|
Sept 30,2022 |
|
June 30,2022 |
|
Mar 31,2022 |
|
Dec 31,2021 |
|
Sept 30,2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate |
|
$ |
--- |
|
$ |
5 |
|
$ |
5 |
|
$ |
5 |
|
$ |
332 |
|
Commercial and Industrial |
|
|
--- |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
--- |
|
Total Commercial Loans |
|
|
--- |
|
|
6 |
|
|
6 |
|
|
6 |
|
|
332 |
|
Residential Mortgage
Loans |
|
|
85 |
|
|
84 |
|
|
84 |
|
|
86 |
|
|
88 |
|
Consumer Loans |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
--- |
|
Total Non-Performing Loans |
|
$ |
85 |
|
$ |
90 |
|
$ |
90 |
|
$ |
92 |
|
$ |
420 |
|
A break-down of non-performing assets is shown in the table
below.
Dollars
in 000s |
|
Sept 30,2022 |
|
June 30,2022 |
|
Mar 31,2022 |
|
Dec 31,2021 |
|
Sept 30,2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Performing Loans |
|
$ |
85 |
|
$ |
90 |
|
$ |
90 |
|
$ |
92 |
|
$ |
420 |
|
Other
Repossessed Assets |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
--- |
|
Other
Real Estate Owned |
|
|
2,343 |
|
|
2,343 |
|
|
2,343 |
|
|
2,343 |
|
|
2,343 |
|
Total Non-Performing Assets |
|
$ |
2,428 |
|
$ |
2,433 |
|
$ |
2,433 |
|
$ |
2,435 |
|
$ |
2,763 |
|
Balance Sheet, Liquidity and Capital
Total assets were $2.84 billion at September 30, 2022, an
increase of $53.8 million from $2.78 billion at June 30, 2022 and a
decrease of $66.5 million from $2.90 billion at September 30, 2021.
Assets were elevated at each period-end due to customers holding a
higher level of deposits during the COVID-19 pandemic, including
balances from PPP loan proceeds.
The Company continued to increase its investment portfolio to
deploy some of its excess liquidity. The Company’s investment
portfolio primarily consists of U.S. treasury and agency
securities, agency mortgage backed securities and various municipal
securities. Total securities were $803.2 million at September 30,
2022, an increase of $14.9 million from $788.3 million at June 30,
2022 and an increase of $424.2 million from $379.0 million at
September 30, 2021.
Total loans were $1.14 billion at September 30, 2022, an
increase of $26.7 million from $1.11 billion at June 30, 2022 and
an increase of $2.0 million from $1.14 billion at September 30,
2021.
Commercial loans decreased by $12.3 million from September 30,
2021 to September 30, 2022, offset by an increase of $11.0 million
in the residential mortgage portfolio, and an increase of $3.3
million in the consumer loan portfolio. Within commercial loans,
commercial real estate loans decreased by $5.0 million and
commercial and industrial loans decreased by $7.3 million. However,
the largest decrease in commercial loans was in PPP loans which
decreased by $77.5 million due to forgiveness by the SBA. Excluding
PPP loans, total commercial loans increased by $70.2 million. The
loan growth experienced in this time period was the direct result
of both new loan prospecting efforts and existing customers
beginning to borrow more for expansion of their businesses.
The composition of the commercial loan portfolio is shown in the
table below:
Dollars
in 000s |
|
Sept 30,2022 |
|
June 30,2022 |
|
Mar 31,2022 |
|
Dec 31,2021 |
|
Sept 30,2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and Development |
|
$ |
111,624 |
|
$ |
107,325 |
|
$ |
104,945 |
|
$ |
103,755 |
|
$ |
104,636 |
|
Other
Commercial Real Estate |
|
|
410,600 |
|
|
411,778 |
|
|
417,368 |
|
|
412,346 |
|
|
422,574 |
|
Commercial Loans Securedby Real Estate |
|
|
522,224 |
|
|
519,103 |
|
|
522,313 |
|
|
516,101 |
|
|
527,210 |
|
Commercial and Industrial |
|
|
427,034 |
|
|
407,788 |
|
|
402,854 |
|
|
378,318 |
|
|
356,812 |
|
Paycheck
Protection Program |
|
|
32 |
|
|
2,791 |
|
|
7,393 |
|
|
41,939 |
|
|
77,571 |
|
Total Commercial Loans |
|
$ |
949,290 |
|
$ |
929,682 |
|
$ |
932,560 |
|
$ |
936,358 |
|
$ |
961,593 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank owned life insurance was $53.2 million at September 30,
2022, up $230,000 from $53.0 million at June 30, 2022 and up
$412,000 from $52.8 million at September 30, 2021 due to earnings
on the underlying investments.
Total deposits were $2.56 billion at September 30, 2022, up
$61.6 million, or 2.5 percent, from $2.49 billion at June 30, 2022
and up $3.0 million, or 0.1 percent, from $2.55 billion at
September 30, 2021. Demand deposits were up $43.9 million at the
end of third quarter 2022 compared to the end of second quarter
2022 and were down $53.2 million compared to the end of third
quarter 2021. Money market deposits and savings deposits were up
$23.3 million from the end of second quarter 2022 and were up $73.1
million from the end of third quarter 2021. Certificates of deposit
were down $5.6 million at September 30, 2022 compared to June 30,
2022 and were down $16.8 million compared to September 30, 2021 as
customers reacted to changes in market interest rates. As deposit
rates dropped during the pandemic, the Company experienced some
shifting between deposit types. As rates have now begun to
increase, the Company has begun to see a shift to interest earning
deposit types. Overall deposit customers are continuing to hold
higher levels of liquid deposit balances due to uncertainty related
to economic conditions. 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 $30.0 million at September 30, 2022 were
unchanged compared to June 30, 2022 and were down $55.0 million
compared to $85.0 million at September 30, 2021. The decrease
compared to the third quarter 2021 was largely due to the FHLB
exercising its put options on a $25.0 million advance carrying a
rate of 0.01% and a $10.0 million advance carrying a rate of 0.45%.
In addition, during the second quarter 2022, the Company prepaid
$20.0 million in FHLB advances, with interest rates ranging from
2.91% to 3.05%. Prepayment fees totaled $87,000 and were included
in interest expense in the second quarter 2022. Paying these
advances off early will save the Company over $650,000 in annual
interest expense, net of the prepayment fees incurred.
The Company's total risk-based regulatory capital ratio at
September 30, 2022 was consistent with the ratio at June 30, 2022
and September 30, 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 September 30, 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 twelve
years as one of “West Michigan’s 101 Best and Brightest Companies
to Work For”. For more information, visit www.macatawabank.com.
CAUTIONARY STATEMENT:
This press release contains forward-looking statements that are
based on management's current beliefs, expectations, assumptions,
estimates, plans and intentions. Forward-looking statements are
identifiable by words or phrases such as “anticipates,” "believe,"
"expect," "may," "should," "will," ”intend,” "continue,"
"improving," "additional," "focus," "forward," "future," "efforts,"
"strategy," "momentum," "positioned," and other similar words or
phrases. Such statements are based upon current beliefs and
expectations and involve substantial risks and uncertainties which
could cause actual results to differ materially from those
expressed or implied by such forward-looking statements. These
statements include, among others, statements related to trends in
our key operating metrics and financial performance, future levels
of earnings and profitability, future levels of earning assets,
future asset quality, future growth, future interest rates, future
net interest margin and future economic conditions. 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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly |
|
Nine Months
Ended |
|
|
3rd
Qtr |
|
2nd
Qtr |
|
3rd
Qtr |
|
September 30 |
EARNINGS SUMMARY |
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Total
interest income |
|
$ |
20,875 |
|
|
$ |
15,435 |
|
|
$ |
14,842 |
|
|
$ |
49,452 |
|
|
$ |
45,300 |
|
Total
interest expense |
|
|
1,104 |
|
|
|
592 |
|
|
|
546 |
|
|
|
2,173 |
|
|
|
2,057 |
|
Net interest
income |
|
|
19,771 |
|
|
|
14,843 |
|
|
|
14,296 |
|
|
|
47,279 |
|
|
|
43,243 |
|
Provision
for loan losses |
|
|
- |
|
|
|
- |
|
|
|
(550 |
) |
|
|
(1,500 |
) |
|
|
(1,300 |
) |
Net interest
income after provision for loan losses |
|
|
19,771 |
|
|
|
14,843 |
|
|
|
14,846 |
|
|
|
48,779 |
|
|
|
44,543 |
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME |
|
|
|
|
|
|
|
|
|
|
Deposit
service charges |
|
|
1,263 |
|
|
|
1,218 |
|
|
|
1,183 |
|
|
|
3,693 |
|
|
|
3,240 |
|
Net gains on
mortgage loans |
|
|
166 |
|
|
|
199 |
|
|
|
851 |
|
|
|
673 |
|
|
|
4,177 |
|
Trust
fees |
|
|
969 |
|
|
|
1,096 |
|
|
|
1,079 |
|
|
|
3,153 |
|
|
|
3,217 |
|
Other |
|
|
2,491 |
|
|
|
2,618 |
|
|
|
2,529 |
|
|
|
7,466 |
|
|
|
7,715 |
|
Total
non-interest income |
|
|
4,889 |
|
|
|
5,131 |
|
|
|
5,642 |
|
|
|
14,985 |
|
|
|
18,349 |
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE |
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits |
|
|
6,639 |
|
|
|
6,402 |
|
|
|
6,278 |
|
|
|
19,331 |
|
|
|
19,192 |
|
Occupancy |
|
|
989 |
|
|
|
1,071 |
|
|
|
992 |
|
|
|
3,232 |
|
|
|
3,023 |
|
Furniture
and equipment |
|
|
1,014 |
|
|
|
988 |
|
|
|
1,014 |
|
|
|
3,017 |
|
|
|
2,929 |
|
FDIC
assessment |
|
|
201 |
|
|
|
197 |
|
|
|
204 |
|
|
|
578 |
|
|
|
532 |
|
Other |
|
|
3,284 |
|
|
|
3,255 |
|
|
|
3,062 |
|
|
|
9,620 |
|
|
|
9,077 |
|
Total
non-interest expense |
|
|
12,127 |
|
|
|
11,913 |
|
|
|
11,550 |
|
|
|
35,778 |
|
|
|
34,753 |
|
Income
before income tax |
|
|
12,533 |
|
|
|
8,061 |
|
|
|
8,938 |
|
|
|
27,986 |
|
|
|
28,139 |
|
Income tax
expense |
|
|
2,488 |
|
|
|
1,493 |
|
|
|
1,736 |
|
|
|
5,372 |
|
|
|
5,341 |
|
Net
income |
|
$ |
10,045 |
|
|
$ |
6,568 |
|
|
$ |
7,202 |
|
|
$ |
22,614 |
|
|
$ |
22,798 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share |
|
$ |
0.29 |
|
|
$ |
0.19 |
|
|
$ |
0.21 |
|
|
$ |
0.66 |
|
|
$ |
0.67 |
|
Diluted
earnings per common share |
|
$ |
0.29 |
|
|
$ |
0.19 |
|
|
$ |
0.21 |
|
|
$ |
0.66 |
|
|
$ |
0.67 |
|
Return on
average assets |
|
|
1.40 |
% |
|
|
0.92 |
% |
|
|
0.98 |
% |
|
|
1.05 |
% |
|
|
1.08 |
% |
Return on
average equity |
|
|
16.41 |
% |
|
|
10.80 |
% |
|
|
11.52 |
% |
|
|
12.23 |
% |
|
|
12.40 |
% |
Net interest
margin (fully taxable equivalent) |
|
|
2.86 |
% |
|
|
2.19 |
% |
|
|
2.04 |
% |
|
|
2.30 |
% |
|
|
2.18 |
% |
Efficiency
ratio |
|
|
49.18 |
% |
|
|
59.64 |
% |
|
|
57.93 |
% |
|
|
57.46 |
% |
|
|
56.42 |
% |
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET DATA |
|
|
|
|
|
September
30 |
June
30 |
|
September
30 |
Assets |
|
|
|
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
Cash and due
from banks |
|
|
|
|
|
$ |
33,205 |
|
|
$ |
38,376 |
|
|
$ |
30,413 |
|
Federal
funds sold and other short-term investments |
|
|
|
|
|
|
733,347 |
|
|
|
721,826 |
|
|
|
1,239,525 |
|
Debt
securities available for sale |
|
|
|
|
|
|
453,728 |
|
|
|
435,628 |
|
|
|
241,475 |
|
Debt
securities held to maturity |
|
|
|
|
|
|
349,481 |
|
|
|
352,721 |
|
|
|
137,569 |
|
Federal Home
Loan Bank Stock |
|
|
|
|
|
|
10,211 |
|
|
|
10,211 |
|
|
|
11,558 |
|
Loans held
for sale |
|
|
|
|
|
|
234 |
|
|
|
1,163 |
|
|
|
2,635 |
|
Total
loans |
|
|
|
|
|
|
1,138,645 |
|
|
|
1,111,915 |
|
|
|
1,136,613 |
|
Less
allowance for loan loss |
|
|
|
|
|
|
14,821 |
|
|
|
14,631 |
|
|
|
16,532 |
|
Net
loans |
|
|
|
|
|
|
1,123,824 |
|
|
|
1,097,284 |
|
|
|
1,120,081 |
|
Premises and
equipment, net |
|
|
|
|
|
|
40,670 |
|
|
|
41,088 |
|
|
|
42,343 |
|
Bank-owned
life insurance |
|
|
|
|
|
|
53,193 |
|
|
|
52,963 |
|
|
|
52,781 |
|
Other real
estate owned |
|
|
|
|
|
|
2,343 |
|
|
|
2,343 |
|
|
|
2,343 |
|
Other
assets |
|
|
|
|
|
|
34,802 |
|
|
|
27,605 |
|
|
|
20,777 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
|
|
|
|
$ |
2,835,038 |
|
|
$ |
2,781,208 |
|
|
$ |
2,901,500 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
|
|
|
|
$ |
855,744 |
|
|
$ |
903,334 |
|
|
$ |
934,477 |
|
Interest-bearing deposits |
|
|
|
|
|
|
1,700,453 |
|
|
|
1,591,249 |
|
|
|
1,618,698 |
|
Total
deposits |
|
|
|
|
|
|
2,556,197 |
|
|
|
2,494,583 |
|
|
|
2,553,175 |
|
Other
borrowed funds |
|
|
|
|
|
|
30,000 |
|
|
|
30,000 |
|
|
|
85,000 |
|
Long-term
debt |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Other
liabilities |
|
|
|
|
|
|
12,287 |
|
|
|
13,516 |
|
|
|
11,112 |
|
Total Liabilities |
|
|
|
|
|
|
2,598,484 |
|
|
|
2,538,099 |
|
|
|
2,649,287 |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
|
236,554 |
|
|
|
243,109 |
|
|
|
252,213 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
|
|
|
|
|
$ |
2,835,038 |
|
|
$ |
2,781,208 |
|
|
$ |
2,901,500 |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
EARNINGS SUMMARY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
19,771 |
|
|
$ |
14,843 |
|
|
$ |
12,665 |
|
|
$ |
12,826 |
|
|
$ |
14,296 |
|
|
$ |
47,279 |
|
|
$ |
43,243 |
|
Provision for loan losses |
|
|
- |
|
|
|
- |
|
|
|
(1,500 |
) |
|
|
(750 |
) |
|
|
(550 |
) |
|
|
(1,500 |
) |
|
|
(1,300 |
) |
Total non-interest income |
|
|
4,889 |
|
|
|
5,131 |
|
|
|
4,965 |
|
|
|
5,346 |
|
|
|
5,642 |
|
|
|
14,985 |
|
|
|
18,349 |
|
Total non-interest expense |
|
|
12,127 |
|
|
|
11,913 |
|
|
|
11,739 |
|
|
|
11,337 |
|
|
|
11,550 |
|
|
|
35,778 |
|
|
|
34,753 |
|
Federal income tax expense |
|
|
2,488 |
|
|
|
1,493 |
|
|
|
1,391 |
|
|
|
1,369 |
|
|
|
1,736 |
|
|
|
5,372 |
|
|
|
5,341 |
|
Net income |
|
$ |
10,045 |
|
|
$ |
6,568 |
|
|
$ |
6,000 |
|
|
$ |
6,216 |
|
|
$ |
7,202 |
|
|
$ |
22,614 |
|
|
$ |
22,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
$ |
0.29 |
|
|
$ |
0.19 |
|
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
$ |
0.21 |
|
|
$ |
0.66 |
|
|
$ |
0.67 |
|
Diluted earnings per common share |
|
$ |
0.29 |
|
|
$ |
0.19 |
|
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
$ |
0.21 |
|
|
$ |
0.66 |
|
|
$ |
0.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARKET DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share |
|
$ |
6.91 |
|
|
$ |
7.10 |
|
|
$ |
7.17 |
|
|
$ |
7.41 |
|
|
$ |
7.38 |
|
|
$ |
6.91 |
|
|
$ |
7.38 |
|
Tangible book value per common share |
|
$ |
6.91 |
|
|
$ |
7.10 |
|
|
$ |
7.17 |
|
|
$ |
7.41 |
|
|
$ |
7.38 |
|
|
$ |
6.91 |
|
|
$ |
7.38 |
|
Market value per common share |
|
$ |
9.26 |
|
|
$ |
8.84 |
|
|
$ |
9.01 |
|
|
$ |
8.82 |
|
|
$ |
8.03 |
|
|
$ |
9.26 |
|
|
$ |
8.03 |
|
Average basic common shares |
|
|
34,251,792 |
|
|
|
34,253,846 |
|
|
|
34,254,772 |
|
|
|
34,229,664 |
|
|
|
34,190,264 |
|
|
|
34,253,459 |
|
|
|
34,192,916 |
|
Average diluted common shares |
|
|
34,251,792 |
|
|
|
34,253,846 |
|
|
|
34,254,772 |
|
|
|
34,229,664 |
|
|
|
34,190,264 |
|
|
|
34,253,459 |
|
|
|
34,192,916 |
|
Period end common shares |
|
|
34,251,485 |
|
|
|
34,253,147 |
|
|
|
34,253,962 |
|
|
|
34,259,945 |
|
|
|
34,189,799 |
|
|
|
34,251,485 |
|
|
|
34,189,799 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
1.40 |
% |
|
|
0.92 |
% |
|
|
0.82 |
% |
|
|
0.85 |
% |
|
|
0.98 |
% |
|
|
1.05 |
% |
|
|
1.08 |
% |
Return on average equity |
|
|
16.41 |
% |
|
|
10.80 |
% |
|
|
9.54 |
% |
|
|
9.84 |
% |
|
|
11.52 |
% |
|
|
12.23 |
% |
|
|
12.40 |
% |
Net interest margin (fully taxable equivalent) |
|
|
2.86 |
% |
|
|
2.19 |
% |
|
|
1.85 |
% |
|
|
1.85 |
% |
|
|
2.04 |
% |
|
|
2.30 |
% |
|
|
2.18 |
% |
Efficiency ratio |
|
|
49.18 |
% |
|
|
59.64 |
% |
|
|
66.59 |
% |
|
|
62.39 |
% |
|
|
57.93 |
% |
|
|
57.46 |
% |
|
|
56.42 |
% |
Full-time equivalent employees (period end) |
|
|
316 |
|
|
|
315 |
|
|
|
311 |
|
|
|
311 |
|
|
|
318 |
|
|
|
316 |
|
|
|
318 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross charge-offs |
|
$ |
46 |
|
|
$ |
60 |
|
|
$ |
35 |
|
|
$ |
22 |
|
|
$ |
22 |
|
|
$ |
141 |
|
|
$ |
102 |
|
Net charge-offs/(recoveries) |
|
$ |
(190 |
) |
|
$ |
(15 |
) |
|
$ |
(227 |
) |
|
$ |
(107 |
) |
|
$ |
(276 |
) |
|
$ |
(432 |
) |
|
$ |
(424 |
) |
Net charge-offs to average loans (annualized) |
|
|
-0.07 |
% |
|
|
-0.01 |
% |
|
|
-0.08 |
% |
|
|
-0.04 |
% |
|
|
-0.09 |
% |
|
|
-0.05 |
% |
|
|
-0.04 |
% |
Nonperforming loans |
|
$ |
85 |
|
|
$ |
90 |
|
|
$ |
90 |
|
|
$ |
92 |
|
|
$ |
420 |
|
|
$ |
85 |
|
|
$ |
420 |
|
Other real estate and repossessed assets |
|
$ |
2,343 |
|
|
$ |
2,343 |
|
|
$ |
2,343 |
|
|
$ |
2,343 |
|
|
$ |
2,343 |
|
|
$ |
2,343 |
|
|
$ |
2,343 |
|
Nonperforming loans to total loans |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.04 |
% |
|
|
0.01 |
% |
|
|
0.04 |
% |
Nonperforming assets to total assets |
|
|
0.09 |
% |
|
|
0.09 |
% |
|
|
0.08 |
% |
|
|
0.08 |
% |
|
|
0.10 |
% |
|
|
0.09 |
% |
|
|
0.10 |
% |
Allowance for loan losses |
|
$ |
14,821 |
|
|
$ |
14,631 |
|
|
$ |
14,616 |
|
|
$ |
15,889 |
|
|
$ |
16,532 |
|
|
$ |
14,821 |
|
|
$ |
16,532 |
|
Allowance for loan losses to total loans |
|
|
1.30 |
% |
|
|
1.32 |
% |
|
|
1.33 |
% |
|
|
1.43 |
% |
|
|
1.45 |
% |
|
|
1.30 |
% |
|
|
1.45 |
% |
Allowance for loan losses to total loans (excluding PPP loans) |
|
1.30 |
% |
|
|
1.32 |
% |
|
|
1.34 |
% |
|
|
1.49 |
% |
|
|
1.56 |
% |
|
|
1.30 |
% |
|
|
1.56 |
% |
Allowance for loan losses to nonperforming loans |
|
|
17436.47 |
% |
|
|
16256.67 |
% |
|
|
16240.00 |
% |
|
|
17270.65 |
% |
|
|
3936.19 |
% |
|
|
17436.47 |
% |
|
|
3936.19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average equity to average assets |
|
|
8.52 |
% |
|
|
8.55 |
% |
|
|
8.62 |
% |
|
|
8.66 |
% |
|
|
8.48 |
% |
|
|
8.56 |
% |
|
|
8.73 |
% |
Common equity tier 1 to risk weighted assets (Consolidated) |
|
|
16.72 |
% |
|
|
16.54 |
% |
|
|
16.92 |
% |
|
|
17.24 |
% |
|
|
17.43 |
% |
|
|
16.72 |
% |
|
|
17.43 |
% |
Tier 1 capital to average assets (Consolidated) |
|
|
9.29 |
% |
|
|
9.13 |
% |
|
|
8.82 |
% |
|
|
8.72 |
% |
|
|
8.51 |
% |
|
|
9.29 |
% |
|
|
8.51 |
% |
Total capital to risk-weighted assets (Consolidated) |
|
|
17.64 |
% |
|
|
17.47 |
% |
|
|
17.88 |
% |
|
|
18.32 |
% |
|
|
18.58 |
% |
|
|
17.64 |
% |
|
|
18.58 |
% |
Common equity tier 1 to risk weighted assets (Bank) |
|
|
16.24 |
% |
|
|
16.04 |
% |
|
|
16.39 |
% |
|
|
16.70 |
% |
|
|
16.88 |
% |
|
|
16.24 |
% |
|
|
16.88 |
% |
Tier 1 capital to average assets (Bank) |
|
|
9.02 |
% |
|
|
8.85 |
% |
|
|
8.55 |
% |
|
|
8.44 |
% |
|
|
8.24 |
% |
|
|
9.02 |
% |
|
|
8.24 |
% |
Total capital to risk-weighted assets (Bank) |
|
|
17.16 |
% |
|
|
16.97 |
% |
|
|
17.35 |
% |
|
|
17.77 |
% |
|
|
18.02 |
% |
|
|
17.16 |
% |
|
|
18.02 |
% |
Common equity to assets |
|
|
8.34 |
% |
|
|
8.74 |
% |
|
|
8.38 |
% |
|
|
8.67 |
% |
|
|
8.69 |
% |
|
|
8.34 |
% |
|
|
8.69 |
% |
Tangible common equity to assets |
|
|
8.34 |
% |
|
|
8.74 |
% |
|
|
8.38 |
% |
|
|
8.67 |
% |
|
|
8.69 |
% |
|
|
8.34 |
% |
|
|
8.69 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
END OF PERIOD BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total portfolio loans |
|
$ |
1,138,645 |
|
|
$ |
1,111,915 |
|
|
$ |
1,101,902 |
|
|
$ |
1,108,993 |
|
|
$ |
1,136,613 |
|
|
$ |
1,138,645 |
$ |
1,136,613 |
|
Earning assets |
|
|
2,727,924 |
|
|
|
2,655,706 |
|
|
|
2,802,498 |
|
|
|
2,803,853 |
|
|
|
2,768,507 |
|
|
|
2,727,924 |
|
|
|
2,768,507 |
|
Total assets |
|
|
2,835,038 |
|
|
|
2,781,208 |
|
|
|
2,929,883 |
|
|
|
2,928,751 |
|
|
|
2,901,500 |
|
|
|
2,835,038 |
|
|
|
2,901,500 |
|
Deposits |
|
|
2,556,197 |
|
|
|
2,494,583 |
|
|
|
2,582,297 |
|
|
|
2,577,958 |
|
|
|
2,553,175 |
|
|
|
2,556,197 |
|
|
|
2,553,175 |
|
Total shareholders' equity |
|
|
236,554 |
|
|
|
243,109 |
|
|
|
245,602 |
|
|
|
254,005 |
|
|
|
252,213 |
|
|
|
236,554 |
|
|
|
252,213 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total portfolio loans |
|
$ |
1,124,950 |
|
|
$ |
1,103,955 |
|
|
$ |
1,092,673 |
|
|
$ |
1,109,863 |
|
|
$ |
1,182,633 |
|
|
$ |
1,107,311 |
$ |
1,302,181 |
|
Earning assets |
|
|
2,746,975 |
|
|
|
2,724,714 |
|
|
|
2,788,254 |
|
|
|
2,780,236 |
|
|
|
2,804,157 |
|
|
|
2,753,200 |
|
|
|
2,671,417 |
|
Total assets |
|
|
2,874,343 |
|
|
|
2,847,381 |
|
|
|
2,917,462 |
|
|
|
2,917,569 |
|
|
|
2,948,664 |
|
|
|
2,879,571 |
|
|
|
2,809,350 |
|
Deposits |
|
|
2,586,165 |
|
|
|
2,537,111 |
|
|
|
2,569,315 |
|
|
|
2,564,961 |
|
|
|
2,605,043 |
|
|
|
2,564,259 |
|
|
|
2,465,858 |
|
Total shareholders' equity |
|
|
244,857 |
|
|
|
243,352 |
|
|
|
251,600 |
|
|
|
252,606 |
|
|
|
249,994 |
|
|
|
246,578 |
|
|
|
245,211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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