Macatawa Bank Corporation (NASDAQ: MCBC), the holding company for
Macatawa Bank (collectively, the “Company”), today announced its
results for the fourth quarter 2022.
- Full year net income of $34.7 million versus $29.0 million in
the prior year
- Net income of $12.1 million in fourth quarter 2022 – up 21%
versus $10.0 million in third quarter 2022 and up 95% versus $6.2
million in fourth quarter 2021
- Net interest margin increased 48 basis points to 3.34% in
fourth quarter 2022 versus third quarter 2022 and increased 149
basis points versus fourth quarter 2021
- Intentional asset-sensitive balance sheet structure continued
to produce improved net interest income and net interest margin in
rising interest rate environment
- Continued loan portfolio growth – $39.1 million, or 14%
annualized growth rate, for the fourth quarter 2022
- Provision for loan losses of $375,000 due primarily to loan
growth
- Grew investment securities portfolio by $44.8 million in fourth
quarter 2022 to supplement loan growth and continued deployment of
excess liquidity
- Deposit portfolio balances showed further growth in fourth
quarter 2022
The Company reported net income of $12.1 million, or $0.35 per
diluted share, in fourth quarter 2022 compared to $6.2 million, or
$0.18 per diluted share, in fourth quarter 2021. For the full year
2022, the Company reported net income of $34.7 million, or $1.01
per diluted share, compared to $29.0 million, or $0.85 per diluted
share, for the full year 2021.
"We are pleased to report very strong profitability for the
fourth quarter of 2022,” said Ronald L. Haan, President and CEO of
the Company. “The impact of rising interest rates on our
asset-sensitive balance sheet resulted in a significant increase in
revenue and bottom line for each quarter during 2022. Net interest
income for the fourth quarter 2022 was $3.1 million higher than the
third quarter 2022 and was nearly double fourth quarter 2021 net
interest income, up $10.0 million, reflecting benefits from federal
funds rate increases and growth in our loan and investment
securities portfolios. We remain encouraged by our commercial loan
origination activity while maintaining excellent credit quality.
Our deposit balances remained strong, growing during the fourth
quarter 2022 by $58.9 million, and total deposit balances at the
end of the quarter were higher than the level of balances a year
ago at the same time.”
Mr. Haan concluded: "Despite ongoing economic uncertainty and a
rapidly changing operating environment, we remain focused on our
primary goal of driving consistent and profitable growth. We
achieved strong operating performance in 2022, and we believe the
Company’s operations and balance sheet are very well positioned as
we enter a new year.”
Operating ResultsNet interest
income for the fourth quarter 2022 totaled $22.9 million, an
increase of $3.1 million from third quarter 2022 and an increase of
$10.0 million from the fourth quarter 2021. Net interest margin for
fourth quarter 2022 was 3.34 percent, up 48 basis points from the
third quarter 2022 and up 149 basis points from the fourth quarter
2021. Net interest income for the fourth quarter 2021 included $1.2
million in fees from loans originated under the Paycheck Protection
Program (“PPP”). The remaining loans under this program received
forgiveness during 2022, so net interest income for the fourth
quarter 2022 did not include any such fees. Net interest income in
2022 versus 2021 benefited from the significant increases in the
federal funds rate beginning in March 2022 and through December
2022 totaling 425 basis points and the related increases in rate
indices impacting the Company’s variable rate loan portfolios.
Interest on federal funds increased by $1.8 million compared to
third quarter 2022 and by $6.0 million compared to fourth 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
$669,000 over third quarter 2022 and by $3.0 million over fourth
quarter 2021.
Non-interest income increased $146,000 in fourth quarter 2022
compared to third quarter 2022 and decreased $311,000 from fourth
quarter 2021. Brokerage income was up $356,000 in the fourth
quarter 2022 compared to the third quarter 2022 and was up $335,000
compared to the fourth quarter 2021. This offset the negative
impact of the rising rate environment on mortgage loan sales gains
and trust fees. Gains on sales of mortgage loans in fourth quarter
2022 were down $134,000 compared to third quarter 2022 and were
down $482,000 from fourth quarter 2021. The Company originated $1.2
million in mortgage loans for sale in fourth quarter 2022 compared
to $6.5 million in third quarter 2022 and $16.4 million in fourth
quarter 2021. Trust fees were up $21,000 in fourth quarter 2022
compared to third quarter 2022 and were down $124,000 compared to
fourth quarter 2021, due largely to stock market conditions. Income
from debit and credit cards was down $40,000 in fourth quarter 2022
compared to third quarter 2022 and was up $24,000 compared to
fourth quarter 2021 due primarily to customer usage behavior.
Deposit service charge income, including treasury management fees,
was down $186,000 in fourth quarter 2022 compared to third quarter
2022 and was down $130,000 from fourth quarter 2021 primarily due
to higher earnings credits provided on treasury management accounts
with the increase in deposit market interest rates.
Non-interest expense was $12.4 million for fourth quarter 2022,
compared to $12.1 million for third quarter 2022 and $11.3 million
for fourth quarter 2021. The largest component of non-interest
expense was salaries and benefits expenses. Salaries and benefits
expenses were up $225,000 compared to third quarter 2022 and were
up $840,000 compared to fourth quarter 2021. The increase compared
to third quarter 2022 was primarily due to a higher level of
variable compensation for brokerage services, bonus expense and
medical insurance costs, while the increase from fourth 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 variable compensation for
brokerage services, 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 |
Q4 2022 toQ3 2022 |
|
Q4 2022toQ4 2021 |
|
|
|
|
|
Salaries and other compensation |
$ |
(9 |
) |
|
$ |
332 |
|
Salary
deferral from commercial loans |
|
--- |
|
|
|
26 |
|
Bonus
accrual |
|
25 |
|
|
|
(64 |
) |
Mortgage
production – variable comp |
|
(37 |
) |
|
|
(93 |
) |
Brokerage – variable comp |
|
128 |
|
|
|
110 |
|
401k
matching contributions |
|
(18 |
) |
|
|
84 |
|
Medical
insurance costs |
|
136 |
|
|
|
445 |
|
Total change in salaries and benefits |
$ |
225 |
|
|
$ |
840 |
|
|
|
|
|
|
|
|
|
Occupancy expenses were down $21,000 in fourth quarter 2022
compared to third quarter 2022 and were up $5,000 compared to
fourth quarter 2021. Data processing expenses were down $19,000 in
fourth quarter 2022 compared to third quarter 2022 and were up
$111,000 compared to fourth quarter 2021 due to higher usage of
electronic banking services and debit cards by our customers.
Outside services were up $121,000 in the fourth quarter 2022
compared to third quarter 2022 and were up by $135,000 compared to
fourth quarter 2021 due to higher recruiting costs and outsourced
audits. Other categories of non-interest expense were relatively
flat compared to third quarter 2022 and fourth quarter 2021 due to
a continued focus on expense management.
Federal income tax expense was $3.0 million for fourth quarter
2022, $2.5 million for third quarter 2022, and $1.4 million for
fourth quarter 2021. The effective tax rate was 19.6 percent for
fourth quarter 2022, compared to 19.9 percent for third quarter
2022 and 18.0 percent for fourth quarter 2021. The increase in the
effective tax rate over 2021 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 QualityA provision for loan losses of
$375,000 was recorded in the fourth quarter 2022. No provision for
loan losses was recorded in third quarter 2022 while a provision
benefit of $750,000 was recorded in fourth quarter 2021. Net loan
recoveries for fourth quarter 2022 were $89,000, compared to third
quarter 2022 net loan recoveries of $190,000 and fourth quarter
2021 net loan recoveries of $107,000. At December 31, 2022, the
Company had experienced net loan recoveries in thirty of the past
thirty-two quarters. Total loans past due on payments by 30 days or
more amounted to $172,000 at December 31, 2022, versus $84,000 at
September 30, 2022 and $129,000 at December 31, 2021. Delinquencies
at December 31, 2022 were comprised of just three individual loans.
Delinquency as a percentage of total loans was just 0.01 percent at
December 31, 2022, well below the Company’s peer level.
The allowance for loan losses of $15.3 million was 1.30 percent
of total loans at December 31, 2022, compared to $14.8 million or
1.30 percent of total loans at September 30, 2022, and $15.9
million or 1.43 percent at December 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 196-to-1 as of
December 31, 2022.
At December 31, 2022, the Company's nonperforming loans were
$78,000, representing 0.01 percent of total loans. This compares to
$85,000 (0.01 percent of total loans) at September 30, 2022 and
$92,000 (0.01 percent of total loans) at December 31, 2021. Other
real estate owned and repossessed assets were $2.3 million at
December 31, 2022, unchanged from $2.3 million at September 30,
2022 and December 31, 2021. Total nonperforming assets, including
other real estate owned and nonperforming loans, decreased by
$14,000 from December 31, 2021 to December 31, 2022.
A break-down of non-performing loans is shown in the table
below.
Dollars
in 000s |
Dec 31, 2022 |
|
Sept 30, 2022 |
|
June 30, 2022 |
|
Mar 31, 2022 |
|
Dec 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate |
$ |
--- |
|
|
$ |
--- |
|
|
$ |
5 |
|
|
$ |
5 |
|
|
$ |
5 |
|
Commercial and Industrial |
|
--- |
|
|
|
--- |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
Total Commercial Loans |
|
--- |
|
|
|
--- |
|
|
|
6 |
|
|
|
6 |
|
|
|
6 |
|
Residential Mortgage Loans |
|
78 |
|
|
|
85 |
|
|
|
84 |
|
|
|
84 |
|
|
|
86 |
|
Consumer
Loans |
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Total Non-Performing Loans |
$ |
78 |
|
|
$ |
85 |
|
|
$ |
90 |
|
|
$ |
90 |
|
|
$ |
92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A break-down of non-performing assets is shown in the table
below.
Dollars
in 000s |
Dec 31, 2022 |
|
Sept 30, 2022 |
|
June 30, 2022 |
|
Mar 31, 2022 |
|
Dec 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Performing Loans |
$ |
78 |
|
|
$ |
85 |
|
|
$ |
90 |
|
|
$ |
90 |
|
|
$ |
92 |
|
Other
Repossessed Assets |
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Other
Real Estate Owned |
|
2,343 |
|
|
|
2,343 |
|
|
|
2,343 |
|
|
|
2,343 |
|
|
|
2,343 |
|
Total Non-Performing Assets |
$ |
2,421 |
|
|
$ |
2,428 |
|
|
$ |
2,433 |
|
|
$ |
2,433 |
|
|
$ |
2,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet, Liquidity and Capital
Total assets were $2.91 billion at December 31, 2022, an
increase of $71.9 million from $2.84 billion at September 30, 2022
and a decrease of $21.8 million from $2.93 billion at December 31,
2021.
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 $848.0 million at December 31,
2022, an increase of $44.8 million from $803.2 million at September
30, 2022 and an increase of $295.0 million from $553.1 million at
December 31, 2021.
Total loans were $1.18 billion at December 31, 2022, an increase
of $39.1 million from $1.14 billion at September 30, 2022 and an
increase of $68.8 million from $1.11 billion at December 31,
2021.
Commercial loans increased by $43.0 million from December 31,
2021 to December 31, 2022, along with an increase of $21.3 million
in the residential mortgage portfolio, and an increase of $4.4
million in the consumer loan portfolio. Within commercial loans,
commercial real estate loans increased by $21.5 million and
commercial and industrial loans increased by $21.5 million.
However, the largest change in commercial loans was in PPP loans
which decreased by $41.9 million due to forgiveness by the SBA.
Excluding PPP loans, total commercial loans increased by $63.4
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 |
Dec 31, 2022 |
|
Sept 30, 2022 |
|
June 30, 2022 |
|
Mar 31, 2022 |
|
Dec 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and Development |
$ |
116,715 |
|
|
$ |
111,624 |
|
|
$ |
107,325 |
|
|
$ |
104,945 |
|
|
$ |
103,755 |
|
Other
Commercial Real Estate |
|
420,888 |
|
|
|
410,600 |
|
|
|
411,778 |
|
|
|
417,368 |
|
|
|
412,346 |
|
Commercial Loans Secured by Real Estate |
|
537,603 |
|
|
|
522,224 |
|
|
|
519,103 |
|
|
|
522,313 |
|
|
|
516,101 |
|
Commercial and Industrial |
|
441,716 |
|
|
|
427,034 |
|
|
|
407,788 |
|
|
|
402,854 |
|
|
|
378,318 |
|
Paycheck
Protection Program |
|
--- |
|
|
|
32 |
|
|
|
2,791 |
|
|
|
7,393 |
|
|
|
41,939 |
|
Total Commercial Loans |
$ |
979,319 |
|
|
$ |
949,290 |
|
|
$ |
929,682 |
|
|
$ |
932,560 |
|
|
$ |
936,358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits were $2.62 billion at December 31, 2022, up $59.0
million, or 2.3 percent, from $2.56 billion at September 30, 2022
and up $37.2 million, or 1.4 percent, from $2.58 billion at
December 31, 2021. Demand deposits were up $8.2 million at the end
of fourth quarter 2022 compared to the end of third quarter 2022
and were down $26.9 million compared to the end of fourth quarter
2021. Money market deposits and savings deposits were up $31.0
million from the end of third quarter 2022 and were up $56.6
million from the end of fourth quarter 2021. Certificates of
deposit were up $19.8 million at December 31, 2022 compared to
September 30, 2022 and were up $7.5 million compared to December
31, 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
increased, the Company has begun to see another shift to interest
and higher interest earning deposit types. 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 December 31, 2022 were
unchanged compared to September 30, 2022 and were down $55.0
million compared to $85.0 million at December 31, 2021. The
decrease compared to the fourth 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
December 31, 2022 was consistent with the ratio at September 30,
2022 and 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 December 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 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 |
|
Twelve Months Ended |
|
4th Qtr |
|
3rd Qtr |
|
4th Qtr |
|
December 31 |
EARNINGS SUMMARY |
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Total interest income |
$ |
25,454 |
|
|
$ |
20,875 |
|
|
$ |
13,334 |
|
|
$ |
74,906 |
|
|
$ |
58,634 |
|
Total interest expense |
|
2,587 |
|
|
|
1,104 |
|
|
|
508 |
|
|
|
4,760 |
|
|
|
2,565 |
|
Net interest income |
|
22,867 |
|
|
|
19,771 |
|
|
|
12,826 |
|
|
|
70,146 |
|
|
|
56,069 |
|
Provision for loan losses |
|
375 |
|
|
|
- |
|
|
|
(750 |
) |
|
|
(1,125 |
) |
|
|
(2,050 |
) |
Net interest income after provision for loan losses |
|
22,492 |
|
|
|
19,771 |
|
|
|
13,576 |
|
|
|
71,271 |
|
|
|
58,119 |
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
Deposit service charges |
|
1,077 |
|
|
|
1,263 |
|
|
|
1,206 |
|
|
|
4,769 |
|
|
|
4,446 |
|
Net gains on mortgage
loans |
|
32 |
|
|
|
166 |
|
|
|
514 |
|
|
|
706 |
|
|
|
4,691 |
|
Trust fees |
|
990 |
|
|
|
969 |
|
|
|
1,114 |
|
|
|
4,143 |
|
|
|
4,331 |
|
Other |
|
2,936 |
|
|
|
2,491 |
|
|
|
2,512 |
|
|
|
10,401 |
|
|
|
10,227 |
|
Total non-interest income |
|
5,035 |
|
|
|
4,889 |
|
|
|
5,346 |
|
|
|
20,019 |
|
|
|
23,695 |
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
6,864 |
|
|
|
6,639 |
|
|
|
6,024 |
|
|
|
26,194 |
|
|
|
25,216 |
|
Occupancy |
|
968 |
|
|
|
989 |
|
|
|
963 |
|
|
|
4,200 |
|
|
|
3,986 |
|
Furniture and equipment |
|
991 |
|
|
|
1,014 |
|
|
|
1,011 |
|
|
|
4,008 |
|
|
|
3,940 |
|
FDIC assessment |
|
211 |
|
|
|
201 |
|
|
|
217 |
|
|
|
789 |
|
|
|
749 |
|
Other |
|
3,414 |
|
|
|
3,284 |
|
|
|
3,122 |
|
|
|
13,035 |
|
|
|
12,199 |
|
Total non-interest expense |
|
12,448 |
|
|
|
12,127 |
|
|
|
11,337 |
|
|
|
48,226 |
|
|
|
46,090 |
|
Income before income tax |
|
15,079 |
|
|
|
12,533 |
|
|
|
7,585 |
|
|
|
43,064 |
|
|
|
35,724 |
|
Income tax expense |
|
2,961 |
|
|
|
2,488 |
|
|
|
1,369 |
|
|
|
8,333 |
|
|
|
6,710 |
|
Net
income |
$ |
12,118 |
|
|
$ |
10,045 |
|
|
$ |
6,216 |
|
|
$ |
34,731 |
|
|
$ |
29,014 |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common
share |
$ |
0.35 |
|
|
$ |
0.29 |
|
|
$ |
0.18 |
|
|
$ |
1.01 |
|
|
$ |
0.85 |
|
Diluted earnings per common
share |
$ |
0.35 |
|
|
$ |
0.29 |
|
|
$ |
0.18 |
|
|
$ |
1.01 |
|
|
$ |
0.85 |
|
Return on average assets |
|
1.72 |
% |
|
|
1.40 |
% |
|
|
0.85 |
% |
|
|
1.21 |
% |
|
|
1.02 |
% |
Return on average equity |
|
20.22 |
% |
|
|
16.41 |
% |
|
|
9.84 |
% |
|
|
14.19 |
% |
|
|
11.74 |
% |
Net interest margin (fully
taxable equivalent) |
|
3.34 |
% |
|
|
2.86 |
% |
|
|
1.85 |
% |
|
|
2.56 |
% |
|
|
2.09 |
% |
Efficiency ratio |
|
44.61 |
% |
|
|
49.18 |
% |
|
|
62.39 |
% |
|
|
53.49 |
% |
|
|
57.78 |
% |
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET
DATA |
|
|
|
|
December 31 |
|
September 30 |
|
December 31 |
Assets |
|
|
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
Cash and due from banks |
|
|
|
|
$ |
51,215 |
|
|
$ |
33,205 |
|
|
$ |
23,669 |
|
Federal funds sold and other
short-term investments |
|
|
|
|
|
703,955 |
|
|
|
733,347 |
|
|
|
1,128,119 |
|
Debt securities available for
sale |
|
|
|
|
|
499,257 |
|
|
|
453,728 |
|
|
|
416,063 |
|
Debt securities held to
maturity |
|
|
|
|
|
348,765 |
|
|
|
349,481 |
|
|
|
137,003 |
|
Federal Home Loan Bank
Stock |
|
|
|
|
|
10,211 |
|
|
|
10,211 |
|
|
|
11,558 |
|
Loans held for sale |
|
|
|
|
|
215 |
|
|
|
234 |
|
|
|
1,407 |
|
Total loans |
|
|
|
|
|
1,177,748 |
|
|
|
1,138,645 |
|
|
|
1,108,993 |
|
Less allowance for loan
loss |
|
|
|
|
|
15,285 |
|
|
|
14,821 |
|
|
|
15,889 |
|
Net loans |
|
|
|
|
|
1,162,463 |
|
|
|
1,123,824 |
|
|
|
1,093,104 |
|
Premises and equipment,
net |
|
|
|
|
|
40,306 |
|
|
|
40,670 |
|
|
|
41,773 |
|
Bank-owned life insurance |
|
|
|
|
|
53,345 |
|
|
|
53,193 |
|
|
|
52,468 |
|
Other real estate owned |
|
|
|
|
|
2,343 |
|
|
|
2,343 |
|
|
|
2,343 |
|
Other assets |
|
|
|
|
|
34,844 |
|
|
|
34,802 |
|
|
|
21,244 |
|
|
|
|
|
|
|
|
|
|
|
Total
Assets |
|
|
|
|
$ |
2,906,919 |
|
|
$ |
2,835,038 |
|
|
$ |
2,928,751 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits |
|
|
|
|
$ |
834,879 |
|
|
$ |
855,744 |
|
|
$ |
886,115 |
|
Interest-bearing deposits |
|
|
|
|
|
1,780,263 |
|
|
|
1,700,453 |
|
|
|
1,691,843 |
|
Total deposits |
|
|
|
|
|
2,615,142 |
|
|
|
2,556,197 |
|
|
|
2,577,958 |
|
Other borrowed funds |
|
|
|
|
|
30,000 |
|
|
|
30,000 |
|
|
|
85,000 |
|
Long-term debt |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Other liabilities |
|
|
|
|
|
14,739 |
|
|
|
12,287 |
|
|
|
11,788 |
|
Total
Liabilities |
|
|
|
|
|
2,659,881 |
|
|
|
2,598,484 |
|
|
|
2,674,746 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
247,038 |
|
|
|
236,554 |
|
|
|
254,005 |
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Shareholders' Equity |
|
|
|
|
$ |
2,906,919 |
|
|
$ |
2,835,038 |
|
|
$ |
2,928,751 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
EARNINGS
SUMMARY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
22,867 |
|
|
$ |
19,771 |
|
|
$ |
14,843 |
|
|
$ |
12,665 |
|
|
$ |
12,826 |
|
|
$ |
70,146 |
|
|
$ |
56,069 |
|
Provision for loan losses |
|
375 |
|
|
|
- |
|
|
|
- |
|
|
|
(1,500 |
) |
|
|
(750 |
) |
|
|
(1,125 |
) |
|
|
(2,050 |
) |
Total non-interest income |
|
5,035 |
|
|
|
4,889 |
|
|
|
5,131 |
|
|
|
4,965 |
|
|
|
5,346 |
|
|
|
20,019 |
|
|
|
23,695 |
|
Total non-interest
expense |
|
12,448 |
|
|
|
12,127 |
|
|
|
11,913 |
|
|
|
11,739 |
|
|
|
11,337 |
|
|
|
48,226 |
|
|
|
46,090 |
|
Federal income tax
expense |
|
2,961 |
|
|
|
2,488 |
|
|
|
1,493 |
|
|
|
1,391 |
|
|
|
1,369 |
|
|
|
8,333 |
|
|
|
6,710 |
|
Net income |
$ |
12,118 |
|
|
$ |
10,045 |
|
|
$ |
6,568 |
|
|
$ |
6,000 |
|
|
$ |
6,216 |
|
|
$ |
34,731 |
|
|
$ |
29,014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common
share |
$ |
0.35 |
|
|
$ |
0.29 |
|
|
$ |
0.19 |
|
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
$ |
1.01 |
|
|
$ |
0.85 |
|
Diluted earnings per common
share |
$ |
0.35 |
|
|
$ |
0.29 |
|
|
$ |
0.19 |
|
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
$ |
1.01 |
|
|
$ |
0.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARKET
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share |
$ |
7.20 |
|
|
$ |
6.91 |
|
|
$ |
7.10 |
|
|
$ |
7.17 |
|
|
$ |
7.41 |
|
|
$ |
7.20 |
|
|
$ |
7.41 |
|
Tangible book value per common
share |
$ |
7.20 |
|
|
$ |
6.91 |
|
|
$ |
7.10 |
|
|
$ |
7.17 |
|
|
$ |
7.41 |
|
|
$ |
7.20 |
|
|
$ |
7.41 |
|
Market value per common
share |
$ |
11.03 |
|
|
$ |
9.26 |
|
|
$ |
8.84 |
|
|
$ |
9.01 |
|
|
$ |
8.82 |
|
|
$ |
11.03 |
|
|
$ |
8.82 |
|
Average basic common
shares |
|
34,277,839 |
|
|
|
34,251,792 |
|
|
|
34,253,846 |
|
|
|
34,254,772 |
|
|
|
34,229,664 |
|
|
|
34,259,604 |
|
|
|
34,202,179 |
|
Average diluted common
shares |
|
34,277,839 |
|
|
|
34,251,792 |
|
|
|
34,253,846 |
|
|
|
34,254,772 |
|
|
|
34,229,664 |
|
|
|
34,259,604 |
|
|
|
34,202,179 |
|
Period end common shares |
|
34,298,640 |
|
|
|
34,251,485 |
|
|
|
34,253,147 |
|
|
|
34,253,962 |
|
|
|
34,259,945 |
|
|
|
34,298,640 |
|
|
|
34,259,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE
RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
1.72 |
% |
|
|
1.40 |
% |
|
|
0.92 |
% |
|
|
0.82 |
% |
|
|
0.85 |
% |
|
|
1.21 |
% |
|
|
1.02 |
% |
Return on average equity |
|
20.22 |
% |
|
|
16.41 |
% |
|
|
10.80 |
% |
|
|
9.54 |
% |
|
|
9.84 |
% |
|
|
14.19 |
% |
|
|
11.74 |
% |
Efficiency ratio |
|
44.61 |
% |
|
|
49.18 |
% |
|
|
59.64 |
% |
|
|
66.59 |
% |
|
|
62.39 |
% |
|
|
53.49 |
% |
|
|
57.78 |
% |
Full-time equivalent employees
(period end) |
|
318 |
|
|
|
316 |
|
|
|
315 |
|
|
|
311 |
|
|
|
311 |
|
|
|
318 |
|
|
|
311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YIELDS AND COST OF
FUNDS RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and other
short-term investments |
|
3.72 |
% |
|
|
2.27 |
% |
|
|
0.79 |
% |
|
|
0.19 |
% |
|
|
0.15 |
% |
|
|
1.53 |
% |
|
|
0.13 |
% |
Debt securities (fully taxable
equivalent) |
|
2.25 |
% |
|
|
2.07 |
% |
|
|
1.87 |
% |
|
|
1.66 |
% |
|
|
1.78 |
% |
|
|
1.99 |
% |
|
|
1.99 |
% |
Commercial loans |
|
4.93 |
% |
|
|
4.30 |
% |
|
|
3.79 |
% |
|
|
3.88 |
% |
|
|
4.01 |
% |
|
|
4.22 |
% |
|
|
4.05 |
% |
Residential mortgage
loans |
|
3.53 |
% |
|
|
3.39 |
% |
|
|
3.27 |
% |
|
|
3.22 |
% |
|
|
3.29 |
% |
|
|
3.36 |
% |
|
|
3.41 |
% |
Consumer loans |
|
6.22 |
% |
|
|
5.18 |
% |
|
|
4.09 |
% |
|
|
3.89 |
% |
|
|
3.95 |
% |
|
|
4.88 |
% |
|
|
4.05 |
% |
Total loans |
|
4.83 |
% |
|
|
4.24 |
% |
|
|
3.74 |
% |
|
|
3.81 |
% |
|
|
3.93 |
% |
|
|
4.16 |
% |
|
|
3.98 |
% |
Total yield on interest
earning assets (fully taxable equivalent) |
|
3.72 |
% |
|
|
3.02 |
% |
|
|
2.28 |
% |
|
|
1.92 |
% |
|
|
1.92 |
% |
|
|
2.73 |
% |
|
|
2.19 |
% |
Interest bearing demand
deposits |
|
0.34 |
% |
|
|
0.14 |
% |
|
|
0.03 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.14 |
% |
|
|
0.03 |
% |
Savings and money market
accounts |
|
0.73 |
% |
|
|
0.29 |
% |
|
|
0.07 |
% |
|
|
0.03 |
% |
|
|
0.03 |
% |
|
|
0.28 |
% |
|
|
0.03 |
% |
Time deposits |
|
0.84 |
% |
|
|
0.29 |
% |
|
|
0.20 |
% |
|
|
0.23 |
% |
|
|
0.31 |
% |
|
|
0.40 |
% |
|
|
0.49 |
% |
Total interest bearing
deposits |
|
0.57 |
% |
|
|
0.22 |
% |
|
|
0.06 |
% |
|
|
0.04 |
% |
|
|
0.04 |
% |
|
|
0.23 |
% |
|
|
0.06 |
% |
Other borrowed funds |
|
2.08 |
% |
|
|
2.08 |
% |
|
|
2.53 |
% |
|
|
1.51 |
% |
|
|
1.50 |
% |
|
|
1.96 |
% |
|
|
1.77 |
% |
Total average cost of funds on
interest bearing liabilities |
|
0.60 |
% |
|
|
0.26 |
% |
|
|
0.14 |
% |
|
|
0.11 |
% |
|
|
0.11 |
% |
|
|
0.28 |
% |
|
|
0.15 |
% |
Net interest margin (fully
taxable equivalent) |
|
3.34 |
% |
|
|
2.86 |
% |
|
|
2.19 |
% |
|
|
1.85 |
% |
|
|
1.85 |
% |
|
|
2.56 |
% |
|
|
2.09 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross charge-offs |
$ |
23 |
|
|
$ |
46 |
|
|
$ |
60 |
|
|
$ |
35 |
|
|
$ |
22 |
|
|
$ |
164 |
|
|
$ |
124 |
|
Net
charge-offs/(recoveries) |
$ |
(89 |
) |
|
$ |
(190 |
) |
|
$ |
(15 |
) |
|
$ |
(227 |
) |
|
$ |
(107 |
) |
|
$ |
(521 |
) |
|
$ |
(531 |
) |
Net charge-offs to average
loans (annualized) |
|
-0.03 |
% |
|
|
-0.07 |
% |
|
|
-0.01 |
% |
|
|
-0.08 |
% |
|
|
-0.04 |
% |
|
|
-0.05 |
% |
|
|
-0.04 |
% |
Nonperforming loans |
$ |
78 |
|
|
$ |
85 |
|
|
$ |
90 |
|
|
$ |
90 |
|
|
$ |
92 |
|
|
$ |
78 |
|
|
$ |
92 |
|
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 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
Nonperforming assets to total
assets |
|
0.08 |
% |
|
|
0.09 |
% |
|
|
0.09 |
% |
|
|
0.08 |
% |
|
|
0.08 |
% |
|
|
0.08 |
% |
|
|
0.08 |
% |
Allowance for loan losses |
$ |
15,285 |
|
|
$ |
14,821 |
|
|
$ |
14,631 |
|
|
$ |
14,616 |
|
|
$ |
15,889 |
|
|
$ |
15,285 |
|
|
$ |
15,889 |
|
Allowance for loan losses to
total loans |
|
1.30 |
% |
|
|
1.30 |
% |
|
|
1.32 |
% |
|
|
1.33 |
% |
|
|
1.43 |
% |
|
|
1.30 |
% |
|
|
1.43 |
% |
Allowance for loan losses to
total loans (excluding PPP loans) |
|
1.30 |
% |
|
|
1.30 |
% |
|
|
1.32 |
% |
|
|
1.34 |
% |
|
|
1.49 |
% |
|
|
1.30 |
% |
|
|
1.49 |
% |
Allowance for loan losses to
nonperforming loans |
|
19596.15 |
% |
|
|
17436.47 |
% |
|
|
16256.67 |
% |
|
|
16240.00 |
% |
|
|
17270.65 |
% |
|
|
19596.15 |
% |
|
|
17270.65 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average equity to average
assets |
|
8.49 |
% |
|
|
8.52 |
% |
|
|
8.55 |
% |
|
|
8.62 |
% |
|
|
8.66 |
% |
|
|
8.55 |
% |
|
|
8.71 |
% |
Common equity tier 1 to risk
weighted assets (Consolidated) |
|
16.94 |
% |
|
|
16.72 |
% |
|
|
16.54 |
% |
|
|
16.92 |
% |
|
|
17.24 |
% |
|
|
16.94 |
% |
|
|
17.24 |
% |
Tier 1 capital to average
assets (Consolidated) |
|
9.73 |
% |
|
|
9.29 |
% |
|
|
9.13 |
% |
|
|
8.82 |
% |
|
|
8.72 |
% |
|
|
9.73 |
% |
|
|
8.72 |
% |
Total capital to risk-weighted
assets (Consolidated) |
|
17.87 |
% |
|
|
17.64 |
% |
|
|
17.47 |
% |
|
|
17.88 |
% |
|
|
18.32 |
% |
|
|
17.87 |
% |
|
|
18.32 |
% |
Common equity tier 1 to risk
weighted assets (Bank) |
|
16.44 |
% |
|
|
16.24 |
% |
|
|
16.04 |
% |
|
|
16.39 |
% |
|
|
16.70 |
% |
|
|
16.44 |
% |
|
|
16.70 |
% |
Tier 1 capital to average
assets (Bank) |
|
9.44 |
% |
|
|
9.02 |
% |
|
|
8.85 |
% |
|
|
8.55 |
% |
|
|
8.44 |
% |
|
|
9.44 |
% |
|
|
8.44 |
% |
Total capital to risk-weighted
assets (Bank) |
|
17.37 |
% |
|
|
17.16 |
% |
|
|
16.97 |
% |
|
|
17.35 |
% |
|
|
17.77 |
% |
|
|
17.37 |
% |
|
|
17.77 |
% |
Common equity to assets |
|
8.50 |
% |
|
|
8.34 |
% |
|
|
8.74 |
% |
|
|
8.38 |
% |
|
|
8.67 |
% |
|
|
8.50 |
% |
|
|
8.67 |
% |
Tangible common equity to
assets |
|
8.50 |
% |
|
|
8.34 |
% |
|
|
8.74 |
% |
|
|
8.38 |
% |
|
|
8.67 |
% |
|
|
8.50 |
% |
|
|
8.67 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
END OF PERIOD
BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total portfolio loans |
$ |
1,177,748 |
|
|
$ |
1,138,645 |
|
|
$ |
1,111,915 |
|
|
$ |
1,101,902 |
|
|
$ |
1,108,993 |
|
|
$ |
1,177,748 |
|
|
$ |
1,108,993 |
|
Earning assets |
|
2,781,515 |
|
|
|
2,727,924 |
|
|
|
2,655,706 |
|
|
|
2,802,498 |
|
|
|
2,803,853 |
|
|
|
2,781,515 |
|
|
|
2,803,853 |
|
Total assets |
|
2,906,919 |
|
|
|
2,835,038 |
|
|
|
2,781,208 |
|
|
|
2,929,883 |
|
|
|
2,928,751 |
|
|
|
2,906,919 |
|
|
|
2,928,751 |
|
Deposits |
|
2,615,142 |
|
|
|
2,556,197 |
|
|
|
2,494,583 |
|
|
|
2,582,297 |
|
|
|
2,577,958 |
|
|
|
2,615,142 |
|
|
|
2,577,958 |
|
Total shareholders'
equity |
|
247,038 |
|
|
|
236,554 |
|
|
|
243,109 |
|
|
|
245,602 |
|
|
|
254,005 |
|
|
|
247,038 |
|
|
|
254,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE
BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and other
short-term investments |
$ |
681,489 |
|
|
$ |
923,153 |
|
|
$ |
858,545 |
|
|
$ |
1,111,216 |
|
|
$ |
1,230,618 |
|
|
$ |
862,240 |
|
|
$ |
1,067,237 |
|
Total debt securities |
|
862,613 |
|
|
|
711,765 |
|
|
|
751,411 |
|
|
|
572,708 |
|
|
|
426,871 |
|
|
|
749,787 |
|
|
|
362,972 |
|
Total portfolio loans |
|
1,159,449 |
|
|
|
1,124,950 |
|
|
|
1,103,955 |
|
|
|
1,092,673 |
|
|
|
1,109,863 |
|
|
|
1,120,453 |
|
|
|
1,253,706 |
|
Earning assets |
|
2,713,294 |
|
|
|
2,746,975 |
|
|
|
2,724,714 |
|
|
|
2,788,254 |
|
|
|
2,780,236 |
|
|
|
2,743,141 |
|
|
|
2,698,846 |
|
Total assets |
|
2,822,770 |
|
|
|
2,874,343 |
|
|
|
2,847,381 |
|
|
|
2,917,462 |
|
|
|
2,917,569 |
|
|
|
2,865,254 |
|
|
|
2,836,627 |
|
Noninterest bearing
deposits |
|
847,752 |
|
|
|
917,552 |
|
|
|
897,727 |
|
|
|
875,223 |
|
|
|
899,670 |
|
|
|
884,579 |
|
|
|
885,838 |
|
Total interest bearing
deposits |
|
1,687,693 |
|
|
|
1,668,613 |
|
|
|
1,639,384 |
|
|
|
1,694,092 |
|
|
|
1,665,292 |
|
|
|
1,672,417 |
|
|
|
1,604,999 |
|
Total deposits |
|
2,535,446 |
|
|
|
2,586,165 |
|
|
|
2,537,111 |
|
|
|
2,569,315 |
|
|
|
2,564,961 |
|
|
|
2,556,996 |
|
|
|
2,490,838 |
|
Borrowings |
|
30,000 |
|
|
|
56,234 |
|
|
|
54,305 |
|
|
|
85,002 |
|
|
|
85,000 |
|
|
|
49,622 |
|
|
|
84,810 |
|
Total shareholders'
equity |
|
239,684 |
|
|
|
244,857 |
|
|
|
243,352 |
|
|
|
251,600 |
|
|
|
252,606 |
|
|
|
244,841 |
|
|
|
247,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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