Mackinac Financial Corporation (Nasdaq: MFNC) (the “Corporation”),
the bank holding company for mBank, today announced 2019 first
quarter net income of $3.17 million, or $.30 per share, compared to
2018 first quarter net income of $1.54 million, or $.24 per
share. The 2018 first quarter results included expenses
related to the acquisition of First Federal of Northern Michigan
(“FFNM”), which had an after-tax impact of $200 thousand on
earnings. Adjusted net income (net of transaction related and
other one-time expenses) for the first quarter of 2018 was $1.74
million or $.28 per share. First quarter 2019 net income
compared to 2018 adjusted net income increased by $1.43 million, or
82%.
Weighted average shares outstanding for the
first quarter 2019 were 10,720,127 compared to 6,304,203 for the
same period of 2018. The Corporation issued 2,146,378 new
shares for the FFNM purchase in May 2018 and issued an additional
2,225,807 shares related to the common stock offering completed in
June 2018.
Total assets of the Corporation at March 31,
2019 were $1.32 billion, compared to $983.93 million at March 31,
2018. Shareholders’ equity at March 31, 2019 totaled $154.75
million, compared to $81.86 million at March 31, 2018. Book
value per share outstanding equated to $14.41 at the end of the
first quarter 2019 compared to $12.93 per share outstanding a year
ago. Tangible book value at quarter-end was $129.97 million
or $12.10 per share outstanding compared to $74.30 million or
$11.73 per share at the end of the first quarter 2018.
Additional notes:
- mBank, the Corporation’s primary
asset, recorded net income of $3.46 million for the first quarter
of 2019, compared to $2.05 million for the same period of 2018,
equating to an increase of $1.41 million or 69%. The increase in
net income equated to an improvement in Return on Average Assets at
the bank from .85% in first quarter 2018 to 1.06% in the first
quarter of 2019.
- Reliance on higher-cost brokered
deposits continues to decrease significantly from $191.46, million
or 23.73% of total deposits at the end of the first quarter 2018,
to $136.76 million, or 12.46% of total deposits at year-end 2018 to
a first quarter 2019 balance of $119.18, million or 10.86% of total
deposits.
- Total core bank deposits increased
$17.29 million in the first quarter of 2019 through more proactive
sales activity in the treasury management line of business and
increased marketing efforts in key retail markets.
- New loan production of $81.4
million in the first quarter of 2019, compared to $44.9 million in
2018 first quarter.
- First quarter 2019 net interest
margin remains strong at 4.55%. Core operating margin, which
is net of accretion from acquired loans that were subject to
purchase accounting adjustments, was 4.37%.
- mBank was awarded the 2018
Diversity Community Lender of the Year award from the U.S. Small
Business Administration of Michigan for its continued work and
commitment to using government sponsored loan programs to provide
funding to local businesses and provide the capital they need to
grow and strengthen communities. mBank was selected based on
superior support provided to advance diverse participation among
small businesses from historically underrepresented groups
including minorities, women, and veterans. Community
activities were also considered in the selection process.
Revenue
Total revenue of the Corporation for first
quarter 2019 was $16.95 million compared to $11.67 million for the
first quarter of 2018. Total interest income for the first
three months of 2019 was $15.83 million compared to $11.06 million
for the same period in 2018. The 2019 first quarter interest income
included accretive yield of $526 thousand from combined credit mark
accretion associated with acquisitions compared to $204 thousand in
the same period of 2018.
Loan Production and Portfolio Mix
Total balance sheet loans at March 31, 2019 were
$1.05 billion compared to March 31, 2018 balances of $812.44
million. Total loans under management reside at $1.38
billion, which includes $329.87 million of service retained
loans. Overall loan production for the first three months of
2019 was $81.4 million compared to $44.9 million in the first
quarter 2018, an increase of $36.5 million, or 80.9%.
Increased production was evident in all lines of business and
across the entire market footprint. As illustrated in the
chart below, first quarter production levels were similar to
historical production levels in our busier seasonal months.
Overall Quarterly Loan Production:
http://www.globenewswire.com/NewsRoom/AttachmentNg/f4235c3a-e5c1-4244-8009-48e68637b163
First Quarter 2019 New Loan Production:
http://www.globenewswire.com/NewsRoom/AttachmentNg/6a3a71a6-1885-409e-94c1-ac84a68fa59c
Payoff activity, outside of normal amortization,
continued to somewhat constrain portfolio growth and was elevated
once again in the first quarter with $27.9 million of total
commercial credits paid off ahead of scheduled maturity. Out of
this $27.9 million, approximately $10 million resulted from
collateral divestments by various borrowers, and another $8.2
million in client relationships were refinanced into real estate
investment trusts at pricing and structure terms that the
Corporation does not offer within our traditional bank lending
guidelines.
As noted in the charts below, the loan portfolio
remains well balanced between fixed and variable rate loans and
diversified in terms of geography. This prudent
diversification should help mitigate both interest rate risk and
concentration risk should the current elongated good credit cycle
outlook begin to turn bearish in light of any adverse national
market economic conditions that may arise.
Loan Composition March 31, 2019:
http://www.globenewswire.com/NewsRoom/AttachmentNg/e176bfdb-dccc-4eec-a563-febe48f669cd
Total Loans by Region March 31, 2019:
http://www.globenewswire.com/NewsRoom/AttachmentNg/5291d05c-3951-47d1-b024-1f3d8fecd02e
Commenting on new loan production and overall
lending activities, President of the Corporation and President and
CEO of mBank, Kelly W. George, stated, “Overall loan production
increased significantly throughout the first quarter and outpaced
last year’s totals by $36 million during the seasonally slowest
origination period of the year. Additional markets and the full
integration of the new lending teams from the two acquisitions last
year provided positive impact to these totals, as expected.
Further, secondary market mortgage activity has been
significantly augmented by our larger bank platform and the market
expansion in 2018 appears to be positively tempering some
seasonality in that specific business line. The first quarter has
also provided for a strong pipeline of commercial loan transactions
that we expect will close and fund in the second quarter, which are
some larger lines of credit and construction loans that will take a
period of time to fully draw throughout the year.”
“We continue to monitor payoff activity on the
commercial side given the continued competitive pressure for loans
from all types of lending conduits. We will stay true to our
underwriting and pricing discipline and not stretch to keep credits
on the books that could negatively impact our balance sheet long
term. In addition, we are very proud of our continued focus on
building our communities through providing capital to small
businesses and supporting them through a variety of resources. This
commitment remains a cornerstone of our culture and was rewarded by
the Small Business Administration (SBA), which recognized the bank
with the Diversity Community Lender of the Year Award for 2018. Our
commercial lenders do a great job of looking for opportunities to
use the various programs from the SBA and other governmental
agencies, which are so important in communities such as ours to
help augment lending terms for businesses and provide the capital
necessary for job creation and economic growth throughout our local
markets.”
Credit Quality
Nonperforming loans totaled $5.59 million, or
.53% of total loans at March 31, 2019 compared to $4.34 million, or
.53% of total loans at March 31, 2018. Total loan delinquencies
greater than 30 days resided at a nominal .95%, compared to .69% in
2018. The Nonperforming assets to total assets ratio resided
at .57% for first quarter of 2019 compared to .70% for the first
quarter of 2018.
Commenting on overall credit risk, Mr. George
stated, “As expected, we have normalized the slight increase in our
non-performing and problem loan credit ratios that occurred in 2018
following the FFNM and Lincoln acquisitions. We have seen no signs
of any adverse systemic issues in terms of increased payment period
times for legacy clients or material deterioration in commercial
client financial statements in any of our core industries in which
we lend. We also carry a very low level of Other Real Estate Owned,
limiting expenses and time and expense in resolution of those
properties. Purchase accounting marks from the previously acquired
banks have continued to prove accurate, attaining expected
accretion levels which should continue into 2019.”
Margin Analysis and Funding
Net interest income for first quarter 2019 was
$13.24 million, resulting in a Net Interest Margin (NIM) of 4.55%
compared to $9.31 million in the first quarter 2018 and a NIM of
4.19%. Core operating margin, which is net of accretion from
acquired loans that were subject to purchase accounting
adjustments, was 4.37% for the first quarter 2019.
Comparatively, net interest income for the fourth quarter of 2018
resided at $13.79 million, a NIM of 4.64%, and core NIM of
4.32%. As illustrated in the chart below, while total Net
Interest Margin decreased slightly quarter-over-quarter, the
decrease resulted from $420 thousand less in purchase accounting
interest income (accretion) from acquired loans. This
decrease consisted of a $155 thousand decrease in performing
accretion, which is following its expected schedule and a $265
thousand decrease in non-performing accretion, which is less
predictable as to when it will be recognized.
Margin breakdown by quarter:
http://www.globenewswire.com/NewsRoom/AttachmentNg/53d4eb6d-32fb-45f1-a8d7-23db0c00c233
Total bank deposits (excluding brokered
deposits) have increased by $362.73 million year-over-year from
$615.34 million at March 31, 2018 to $978.07 million at first
quarter-end 2019. Total brokered deposits have decreased
significantly and were $119.18 million at March 31, 2019 compared
to $191.46 million at March 31, 2018, a decrease of 38%. FHLB
(Federal Home Loan Bank) borrowings were also reduced from $60
million at the end of the first quarter 2018 to $47 million at the
end of the first quarter 2019.
Funding Sources March 31, 2019:
http://www.globenewswire.com/NewsRoom/AttachmentNg/2d3d920d-0d58-49f8-a6bd-577931d7653b
Funding Sources March 31, 2018:
http://www.globenewswire.com/NewsRoom/AttachmentNg/045c27cf-3a29-4f3d-bd10-c131a87a2834
Mr. George stated, “Core bank deposits have
increased significantly year-over-year as a result of both our 2018
acquisition activity and strong deposit gathering efforts in our
branches and by our treasury management team. Our bank
deposits are up $17 million since year end 2018 and have allowed
for an additonal $17 million reduction in higher cost brokered
deposits over the course of the first quarter. With continued focus
and progress, we have significantly lessened our reliance on
wholesale funding while maintaining a strong liquidity
position. Our focus on new core deposit procurement remains a
key initiative for 2019 as we look to continue to wind down our
wholesale funding sources through continued aggressive marketing
and business development initiatives in our higher volume
markets.”
Noninterest Income /
Expense
First quarter 2019 Noninterest Income was $1.12
million compared to $614 thousand for the same period of
2018. The significant year-over year improvement is a
combination of the scale provided by the two 2018 acquisitions as
well as continued focus on drivers of noninterest income, including
secondary market mortgage and SBA sales. Noninterest Expense for
the first quarter of 2019 was $10.24 million compared to $7.93
million for the same period of 2018. The expense variance
from 2018 was heavily impacted by the additional expense related to
the larger bank platform following the FFNM and Lincoln
transactions, including additional salary, benefits and occupancy
costs as well as some transaction related expenses. For
comparison purposes, noninterest expense remains slightly improved
quarter-over-quarter with the fourth quarter of 2018 equating to
$10.68 million.
Assets and Capital
Total assets of the Corporation at March 31,
2019 were $1.32 billion, compared to $983.93 million at March 31,
2018. Shareholders’ equity at March 31, 2019 totaled $154.75
million compared to $81.86 million at March 31, 2018. Book
value per share outstanding equated to $14.41 at the end of the
first quarter 2019 compared to $12.93 per share outstanding a year
ago. Tangible book value at quarter-end was $129.97 million
or $12.10 per share outstanding compared to $74.30 million, or
$11.73 per share, at the end of the first quarter 2018.
Both the common stock offering and the acquisitions had
positive impacts on the Corporation’s overall capitalization and
regulatory capital ratios. Both the Corporation and the Bank are
“well-capitalized” with total risk-based capital to risk-weighted
assets of 12.79% and 12.58% and tier 1 capital to total tier 1
average assets at the Corporation of 9.54% and at the bank of
9.44%.
Paul D. Tobias, Chairman and Chief Executive
Officer of the Corporation and Chairman of mBank concluded, “We
believe that the first quarter of 2019 reflects the positive impact
of our 2018 acquisitions and organic growth efforts with an
improved balance sheet and higher bottom line net income levels. We
reviewed several external opportunities for acquisition later in
2018 and in the first quarter of this year, but pricing levels were
too high. We will continue to be receptive to acquisitions
with sound economics as we focus on organic growth, credit trends
and operating efficiencies in 2019.”
Mackinac Financial Corporation is a registered
bank holding company formed under the Bank Holding Company Act of
1956 with assets in excess of $1.3 billion and whose common stock
is traded on the NASDAQ stock market as “MFNC.” The
principal subsidiary of the Corporation is mBank.
Headquartered in Manistique, Michigan, mBank has 29 branch
locations; eleven in the Upper Peninsula, ten in the Northern Lower
Peninsula, one in Oakland County, Michigan, and seven in Northern
Wisconsin. The Company’s banking services include commercial
lending and treasury management products and services geared toward
small to mid-sized businesses, as well as a full array of personal
and business deposit products and consumer loans.
Forward-Looking Statements
This release contains certain
forward-looking statements. Words such as “anticipates,”
“believes,” “estimates,” “expects,” “intends,” “should,” “will,”
and variations of such words and similar expressions are intended
to identify forward-looking statements: as defined by the Private
Securities Litigation Reform Act of 1995. These statements
reflect management’s current beliefs as to expected outcomes of
future events and are not guarantees of future performance.
These statements involve certain risks, uncertainties and
assumptions 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 or forecasted in such forward-looking statements.
Factors that could cause a difference include among others: changes
in the national and local economies or market conditions; changes
in interest rates and banking regulations; the impact of
competition from traditional or new sources; and the possibility
that anticipated cost savings and revenue enhancements from mergers
and acquisitions, bank consolidations, and other sources may not be
fully realized at all or within specified time frames as well as
other risks and uncertainties including but not limited to those
detailed from time to time in filings of the Company with the
Securities and Exchange Commission. These and other factors
may cause decisions and actual results to differ materially from
current expectations. Mackinac Financial Corporation
undertakes no obligation to revise, update, or clarify
forward-looking statements to reflect events or conditions after
the date of this release.
| |
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| MACKINAC FINANCIAL CORPORATION AND
SUBSIDIARIESSELECTED FINANCIAL
HIGHLIGHTS |
| |
|
|
|
|
|
|
|
| |
|
As of and For the |
|
As of and For the |
|
As of and For the |
|
| |
Quarter Ending |
|
Year Ending |
|
Quarter Ending |
|
| |
|
March 31, |
|
December 31, |
|
March 31, |
|
| (Dollars in thousands,
except per share data) |
|
2019 |
|
2018 |
|
2018 |
|
| |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
| Selected
Financial Condition Data (at end of
period): |
|
|
|
|
|
|
|
| Assets |
|
$ |
1,316,996 |
|
$ |
1,318,040 |
|
$ |
983,929 |
|
| Loans |
|
|
1,045,428 |
|
|
1,038,864 |
|
|
812,441 |
|
| Investment
securities |
|
|
113,460 |
|
|
116,748 |
|
|
73,902 |
|
| Deposits |
|
|
1,097,248 |
|
|
1,097,537 |
|
|
806,797 |
|
| Borrowings |
|
|
53,658 |
|
|
60,441 |
|
|
90,002 |
|
| Shareholders'
equity |
|
|
154,746 |
|
|
152,069 |
|
|
81,857 |
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Selected
Statements of Income Data: |
|
|
|
|
|
|
|
| Net interest
income |
|
$ |
13,236 |
|
$ |
47,130 |
|
$ |
9,309 |
|
| Income before
taxes |
|
|
4,009 |
|
|
10,593 |
|
|
1,945 |
|
| Net income |
|
|
3,167 |
|
|
8,367 |
|
|
1,537 |
|
| Income per common share
- Basic |
|
.30 |
|
.94 |
|
.24 |
|
| Income per common share
- Diluted |
|
.30 |
|
.94 |
|
.24 |
|
| Weighted average shares
outstanding - Basic |
|
|
10,720,127 |
|
|
8,891,967 |
|
|
6,304,203 |
|
| Weighted average shares
outstanding- Diluted |
|
|
10,723,921 |
|
|
8,921,658 |
|
|
6,330,210 |
|
| |
|
|
|
|
|
|
|
| Selected
Financial Ratios and Other Data: |
|
|
|
|
|
|
|
| Performance
Ratios: |
|
|
|
|
|
|
|
| Net interest
margin |
|
|
4.55 |
% |
|
4.44 |
% |
|
4.19 |
% |
| Efficiency ratio |
|
|
70.81 |
|
|
77.70 |
|
|
79.25 |
|
| Return on average
assets |
|
.97 |
|
.71 |
|
.63 |
|
| Return on average
equity |
|
|
8.36 |
|
|
6.94 |
|
|
7.61 |
|
| |
|
|
|
|
|
|
|
| Average total
assets |
|
$ |
1,320,080 |
|
$ |
1,177,455 |
|
$ |
982,679 |
|
| Average total
shareholders' equity |
|
|
153,689 |
|
|
120,478 |
|
|
81,894 |
|
| Average loans to
average deposits ratio |
|
|
95.10 |
% |
|
97.75 |
% |
|
100.70 |
% |
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Common Share
Data at end of period: |
|
|
|
|
|
|
|
| Market price per common
share |
|
$ |
15.74 |
|
$ |
13.65 |
|
$ |
16.25 |
|
| Book value per common
share |
|
|
14.41 |
|
|
14.20 |
|
|
12.93 |
|
| Tangible book value per
share |
|
|
12.10 |
|
|
11.61 |
|
|
11.73 |
|
| Dividends paid per
share, annualized |
|
.480 |
|
.480 |
|
.480 |
|
| Common shares
outstanding |
|
|
10,740,712 |
|
|
10,712,745 |
|
|
6,332,560 |
|
| |
|
|
|
|
|
|
|
| Other Data at
end of period: |
|
|
|
|
|
|
|
| Allowance for loan
losses |
|
$ |
5,154 |
|
$ |
5,183 |
|
$ |
5,101 |
|
| Non-performing
assets |
|
$ |
7,549 |
|
$ |
8,196 |
|
$ |
6,868 |
|
| Allowance for loan
losses to total loans |
|
.49 |
% |
.50 |
% |
.63 |
% |
| Non-performing assets
to total assets |
|
.57 |
% |
.62 |
% |
.70 |
% |
| Texas ratio |
|
|
5.59 |
% |
|
6.33 |
% |
|
6.87 |
% |
| |
|
|
|
|
|
|
|
| Number of: |
|
|
|
|
|
|
|
| Branch
locations |
|
|
29 |
|
|
29 |
|
|
23 |
|
| FTE
Employees |
|
|
305 |
|
|
288 |
|
|
227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| MACKINAC FINANCIAL CORPORATION AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS |
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December
31, |
|
March 31 |
|
|
|
2019 |
|
2018 |
|
2018 |
|
|
|
(Unaudited) |
|
|
|
|
(Unaudited) |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and due from
banks |
|
$ |
55,923 |
|
|
$ |
64,151 |
|
|
$ |
40,411 |
|
| Federal
funds sold |
|
|
1,040 |
|
|
|
6 |
|
|
|
16 |
|
| Cash and
cash equivalents |
|
|
56,963 |
|
|
|
64,157 |
|
|
|
40,427 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits in other financial institutions |
|
|
12,712 |
|
|
|
13,452 |
|
|
|
11,391 |
|
|
Securities available for sale |
|
|
113,460 |
|
|
|
116,748 |
|
|
|
73,902 |
|
| Federal
Home Loan Bank stock |
|
|
4,924 |
|
|
|
4,924 |
|
|
|
3,112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
732,678 |
|
|
|
717,032 |
|
|
|
579,718 |
|
|
Mortgage |
|
|
293,126 |
|
|
|
301,461 |
|
|
|
215,804 |
|
|
Consumer |
|
|
19,624 |
|
|
|
20,371 |
|
|
|
16,919 |
|
| Total
Loans |
|
|
1,045,428 |
|
|
|
1,038,864 |
|
|
|
812,441 |
|
| Allowance
for loan losses |
|
|
(5,154 |
) |
|
|
(5,183 |
) |
|
|
(5,101 |
) |
| Net
loans |
|
|
1,040,274 |
|
|
|
1,033,681 |
|
|
|
807,340 |
|
|
|
|
|
|
|
|
|
|
|
|
| Premises
and equipment |
|
|
23,479 |
|
|
|
22,783 |
|
|
|
16,329 |
|
| Other
real estate held for sale |
|
|
1,961 |
|
|
|
3,119 |
|
|
|
2,526 |
|
| Deferred
tax asset |
|
|
6,906 |
|
|
|
5,763 |
|
|
|
4,674 |
|
| Deposit
based intangibles |
|
|
5,549 |
|
|
|
5,720 |
|
|
|
1,860 |
|
|
Goodwill |
|
|
19,224 |
|
|
|
22,024 |
|
|
|
5,694 |
|
| Other
assets |
|
|
31,544 |
|
|
|
25,669 |
|
|
|
16,674 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
1,316,996 |
|
|
$ |
1,318,040 |
|
|
$ |
983,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Noninterest bearing deposits |
|
$ |
245,201 |
|
|
$ |
241,556 |
|
|
$ |
143,129 |
|
| NOW,
money market, interest checking |
|
|
363,753 |
|
|
|
368,890 |
|
|
|
260,051 |
|
|
Savings |
|
|
110,978 |
|
|
|
111,358 |
|
|
|
63,867 |
|
|
CDs<$250,000 |
|
|
245,427 |
|
|
|
225,236 |
|
|
|
135,554 |
|
|
CDs>$250,000 |
|
|
12,706 |
|
|
|
13,737 |
|
|
|
12,738 |
|
|
Brokered |
|
|
119,183 |
|
|
|
136,760 |
|
|
|
191,458 |
|
| Total
deposits |
|
|
1,097,248 |
|
|
|
1,097,537 |
|
|
|
806,797 |
|
|
|
|
|
|
|
|
|
|
|
|
| Federal
funds purchased |
|
|
6,780 |
|
|
|
2,905 |
|
|
|
10,000 |
|
|
Borrowings |
|
|
46,878 |
|
|
|
57,536 |
|
|
|
80,002 |
|
| Other
liabilities |
|
|
11,344 |
|
|
|
7,993 |
|
|
|
5,273 |
|
| Total
liabilities |
|
|
1,162,250 |
|
|
|
1,165,971 |
|
|
|
902,072 |
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
|
| Common
stock and additional paid in capital - No par value Authorized -
18,000,000 shares Issued and outstanding -
10,740,712; 10,712,745 and 6,332,560
respectively |
|
|
129,204 |
|
|
|
129,066 |
|
|
|
62,080 |
|
| Retained
earnings |
|
|
25,347 |
|
|
|
23,466 |
|
|
|
20,493 |
|
|
Accumulated other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
Unrealized (losses) gains on available for sale securities |
|
|
413 |
|
|
|
(245 |
) |
|
|
(495 |
) |
| Minimum
pension liability |
|
|
(218 |
) |
|
|
(218 |
) |
|
|
(221 |
) |
| Total
shareholders’ equity |
|
|
154,746 |
|
|
|
152,069 |
|
|
|
81,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
$ |
1,316,996 |
|
|
$ |
1,318,040 |
|
|
$ |
983,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| MACKINAC FINANCIAL CORPORATION AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
OPERATIONS |
| |
|
|
| |
|
Three Months Ended |
| |
|
March 31, |
| |
|
|
2019 |
|
|
|
2018 |
|
| |
|
|
| |
|
(Unaudited) |
| INTEREST
INCOME: |
|
|
|
|
| Interest
and fees on loans: |
|
|
|
|
|
Taxable |
|
$ |
14,595 |
|
|
$ |
10,390 |
|
|
Tax-exempt |
|
|
47 |
|
|
|
25 |
|
| Interest
on securities: |
|
|
|
|
|
Taxable |
|
|
703 |
|
|
|
372 |
|
|
Tax-exempt |
|
|
98 |
|
|
|
69 |
|
| Other
interest income |
|
|
385 |
|
|
|
199 |
|
| Total
interest income |
|
|
15,828 |
|
|
|
11,055 |
|
| |
|
|
|
|
| INTEREST
EXPENSE: |
|
|
|
|
|
Deposits |
|
|
2,354 |
|
|
|
1,236 |
|
|
Borrowings |
|
|
238 |
|
|
|
510 |
|
| Total
interest expense |
|
|
2,592 |
|
|
|
1,746 |
|
| |
|
|
|
|
| Net interest
income |
|
|
13,236 |
|
|
|
9,309 |
|
| Provision for loan
losses |
|
|
100 |
|
|
|
50 |
|
| Net interest income
after provision for loan losses |
|
|
13,136 |
|
|
|
9,259 |
|
| |
|
|
|
|
| OTHER
INCOME: |
|
|
|
|
| Deposit
service fees |
|
|
406 |
|
|
|
269 |
|
| Income
from loans sold on the secondary market |
|
|
312 |
|
|
|
177 |
|
| SBA/USDA
loan sale gains |
|
|
125 |
|
|
|
51 |
|
| Mortgage
servicing amortization |
|
|
(8 |
) |
|
|
(8 |
) |
|
Other |
|
|
282 |
|
|
|
125 |
|
| Total
other income |
|
|
1,117 |
|
|
|
614 |
|
| |
|
|
|
|
| OTHER
EXPENSE: |
|
|
|
|
| Salaries
and employee benefits |
|
|
5,435 |
|
|
|
4,154 |
|
|
Occupancy |
|
|
1,081 |
|
|
|
811 |
|
| Furniture
and equipment |
|
|
718 |
|
|
|
531 |
|
| Data
processing |
|
|
709 |
|
|
|
504 |
|
|
Advertising |
|
|
309 |
|
|
|
195 |
|
|
Professional service fees |
|
|
434 |
|
|
|
304 |
|
| Loan
origination expenses and deposit and card related fees |
|
|
179 |
|
|
|
126 |
|
|
Writedowns and losses on other real estate held for sale |
|
|
28 |
|
|
|
26 |
|
| FDIC
insurance assessment |
|
|
134 |
|
|
|
156 |
|
|
Communications expense |
|
|
228 |
|
|
|
155 |
|
|
Transaction related expenses |
|
|
- |
|
|
|
189 |
|
|
Other |
|
|
989 |
|
|
|
777 |
|
| Total
other expenses |
|
|
10,244 |
|
|
|
7,928 |
|
| |
|
|
|
|
| Income before provision
for income taxes |
|
|
4,009 |
|
|
|
1,945 |
|
| Provision for income
taxes |
|
|
842 |
|
|
|
408 |
|
| |
|
|
|
|
| NET INCOME
AVAILABLE TO COMMON SHAREHOLDERS |
|
$ |
3,167 |
|
|
$ |
1,537 |
|
| |
|
|
|
|
| INCOME PER
COMMON SHARE: |
|
|
|
|
|
Basic |
|
$ |
.30 |
|
|
$ |
.24 |
|
|
Diluted |
|
$ |
.30 |
|
|
$ |
.24 |
|
| |
|
|
|
|
| |
|
MACKINAC FINANCIAL CORPORATION AND
SUBSIDIARIESLOAN PORTFOLIO AND CREDIT
QUALITY |
(Dollars in thousands)
Loan Portfolio Balances (at end of period):
| |
March
31, |
|
December 31, |
|
March 31, |
|
| |
2018 |
|
2018 |
|
2018 |
|
| |
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
| Commercial
Loans: |
|
|
|
|
|
|
| Real estate - operators
of nonresidential buildings |
$ |
147,752 |
|
$ |
150,251 |
|
$ |
118,458 |
|
| Hospitality and
tourism |
|
85,604 |
|
|
77,598 |
|
|
75,046 |
|
| Lessors of residential
buildings |
|
46,702 |
|
|
50,204 |
|
|
33,127 |
|
| Gasoline stations and
convenience stores |
|
24,663 |
|
|
24,189 |
|
|
21,771 |
|
| Logging |
|
21,073 |
|
|
20,860 |
|
|
16,628 |
|
| Commercial
construction |
|
33,118 |
|
|
29,765 |
|
|
8,004 |
|
| Other |
|
373,766 |
|
|
364,165 |
|
|
306,684 |
|
| Total
Commercial Loans |
|
732,678 |
|
|
717,032 |
|
|
579,718 |
|
| |
|
|
|
|
|
|
| 1-4 family residential
real estate |
|
281,104 |
|
|
286,908 |
|
|
204,542 |
|
| Consumer |
|
19,624 |
|
|
20,371 |
|
|
16,919 |
|
| Consumer
construction |
|
12,022 |
|
|
14,553 |
|
|
11,262 |
|
| |
|
|
|
|
|
|
| Total
Loans |
$ |
1,045,428 |
|
$ |
1,038,864 |
|
$ |
812,441 |
|
Credit Quality (at end of
period):
| |
|
|
|
|
|
|
| |
March 31, |
|
December 31, |
|
March 31, |
|
| |
2018 |
|
2018 |
|
2018 |
|
| |
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
| Nonperforming
Assets : |
|
|
|
|
|
|
| Nonaccrual loans |
$ |
5,588 |
|
$ |
5,054 |
|
$ |
4,165 |
|
| Loans past due 90 days
or more |
|
- |
|
|
23 |
|
|
- |
|
| Restructured loans |
|
- |
|
|
- |
|
|
177 |
|
| Total
nonperforming loans |
|
5,588 |
|
|
5,077 |
|
|
4,342 |
|
| Other real estate
owned |
|
1,961 |
|
|
3,119 |
|
|
2,526 |
|
| Total
nonperforming assets |
$ |
7,549 |
|
$ |
8,196 |
|
$ |
6,868 |
|
| Nonperforming loans as
a % of loans |
.53 |
% |
.49 |
% |
.53 |
% |
| Nonperforming assets as
a % of assets |
.57 |
% |
.62 |
% |
.70 |
% |
| Reserve for
Loan Losses: |
|
|
|
|
|
|
| At period end |
$ |
5,154 |
|
$ |
5,183 |
|
$ |
5,101 |
|
| As a % of average
loans |
.49 |
% |
.50 |
% |
.63 |
% |
| As a % of nonperforming
loans |
|
92.23 |
% |
|
102.09 |
% |
|
117.48 |
% |
| As a % of nonaccrual
loans |
|
92.23 |
% |
|
102.55 |
% |
|
122.47 |
% |
| Texas Ratio |
|
5.59 |
% |
|
6.33 |
% |
|
6.87 |
% |
| |
|
|
|
|
|
|
| Charge-off
Information (year to date): |
|
|
|
|
|
|
| Average
loans |
$ |
1,046,740 |
|
$ |
941,221 |
|
$ |
810,688 |
|
| Net
charge-offs (recoveries) |
$ |
129 |
|
$ |
396 |
|
$ |
28 |
|
|
Charge-offs as a % of average loans, annualized |
.05 |
% |
.04 |
% |
.01 |
% |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| MACKINAC FINANCIAL
CORPORATION AND SUBSIDIARIES QUARTERLY FINANCIAL
HIGHLIGHTS |
| |
|
|
|
|
|
|
|
|
|
|
| |
QUARTER ENDED |
|
| |
(Unaudited) |
|
| |
March 31, |
|
December 31 |
|
September 30, |
|
June 30 |
|
March 31 |
|
| |
|
2019 |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2018 |
|
|
| BALANCE
SHEET (Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Total loans |
$ |
1,045,428 |
|
|
$ |
1,038,864 |
|
|
$ |
993,808 |
|
|
$ |
1,003,377 |
|
|
$ |
812,441 |
|
|
| Allowance for loan
losses |
|
(5,154 |
) |
|
|
(5,183 |
) |
|
|
(5,186 |
) |
|
|
(5,141 |
) |
|
|
(5,101 |
) |
|
| Total loans,
net |
|
1,040,274 |
|
|
|
1,033,681 |
|
|
|
988,622 |
|
|
|
998,236 |
|
|
|
807,340 |
|
|
| Total assets |
|
1,316,996 |
|
|
|
1,318,040 |
|
|
|
1,254,335 |
|
|
|
1,274,095 |
|
|
|
983,929 |
|
|
| Core deposits |
|
965,359 |
|
|
|
947,040 |
|
|
|
885,988 |
|
|
|
844,894 |
|
|
|
602,601 |
|
|
| Noncore
deposits |
|
131,889 |
|
|
|
150,497 |
|
|
|
142,070 |
|
|
|
170,607 |
|
|
|
204,196 |
|
|
| Total
deposits |
|
1,097,248 |
|
|
|
1,097,537 |
|
|
|
1,028,058 |
|
|
|
1,015,501 |
|
|
|
806,797 |
|
|
| Total borrowings |
|
53,678 |
|
|
|
60,441 |
|
|
|
69,216 |
|
|
|
91,747 |
|
|
|
90,002 |
|
|
| Total shareholders'
equity |
|
154,746 |
|
|
|
152,069 |
|
|
|
149,367 |
|
|
|
148,867 |
|
|
|
81,857 |
|
|
| Total tangible
equity |
|
129,973 |
|
|
|
124,325 |
|
|
|
124,605 |
|
|
|
123,974 |
|
|
|
74,303 |
|
|
| Total shares
outstanding |
|
10,740,712 |
|
|
|
10,712,745 |
|
|
|
10,712,745 |
|
|
|
10,712,745 |
|
|
|
6,332,560 |
|
|
| Weighted average shares
outstanding |
|
10,720,127 |
|
|
|
10,712,745 |
|
|
|
10,712,745 |
|
|
|
7,769,720 |
|
|
|
6,304,203 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| AVERAGE
BALANCES (Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Assets |
$ |
1,320,080 |
|
|
$ |
1,320,996 |
|
|
$ |
1,284,068 |
|
|
$ |
1,117,188 |
|
|
$ |
982,679 |
|
|
| Loans |
|
1,046,740 |
|
|
|
1,043,409 |
|
|
|
1,001,763 |
|
|
|
905,802 |
|
|
|
810,688 |
|
|
| Deposits |
|
1,099,644 |
|
|
|
1,087,174 |
|
|
|
1,042,004 |
|
|
|
913,220 |
|
|
|
805,092 |
|
|
| Equity |
|
153,689 |
|
|
|
149,241 |
|
|
|
149,202 |
|
|
|
100,518 |
|
|
|
81,894 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| INCOME
STATEMENT (Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Net interest
income |
$ |
13,236 |
|
|
$ |
13,795 |
|
|
$ |
13,214 |
|
|
$ |
10,813 |
|
|
$ |
9,309 |
|
|
| Provision for loan
losses |
|
100 |
|
|
|
300 |
|
|
|
50 |
|
|
|
100 |
|
|
|
50 |
|
|
| Net interest
income after provision |
|
13,136 |
|
|
|
13,495 |
|
|
|
13,164 |
|
|
|
10,713 |
|
|
|
9,259 |
|
|
| Total noninterest
income |
|
1,117 |
|
|
|
1,443 |
|
|
|
1,343 |
|
|
|
863 |
|
|
|
614 |
|
|
| Total noninterest
expense |
|
10,244 |
|
|
|
10,678 |
|
|
|
10,618 |
|
|
|
11,077 |
|
|
|
7,928 |
|
|
| Income before
taxes |
|
4,009 |
|
|
|
4,260 |
|
|
|
3,889 |
|
|
|
499 |
|
|
|
1,945 |
|
|
| Provision for income
taxes |
|
842 |
|
|
|
895 |
|
|
|
820 |
|
|
|
103 |
|
|
|
408 |
|
|
| Net income available to
common shareholders |
$ |
3,167 |
|
|
$ |
3,365 |
|
|
$ |
3,069 |
|
|
$ |
396 |
|
|
$ |
1,537 |
|
|
| Income pre-tax,
pre-provision |
$ |
4,109 |
|
|
$ |
4,560 |
|
|
$ |
3,939 |
|
|
$ |
599 |
|
|
$ |
1,995 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| PER SHARE
DATA |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Earnings per common
share |
$ |
.30 |
|
|
$ |
.31 |
|
|
$ |
.29 |
|
|
$ |
.05 |
|
|
$ |
.24 |
|
|
| Book value per
common share |
|
14.41 |
|
|
|
14.20 |
|
|
|
13.94 |
|
|
|
13.90 |
|
|
|
12.93 |
|
|
| Tangible book value per
share |
|
12.10 |
|
|
|
11.61 |
|
|
|
11.63 |
|
|
|
11.57 |
|
|
|
11.73 |
|
|
| Market value, closing
price |
|
15.74 |
|
|
|
13.65 |
|
|
|
16.20 |
|
|
|
16.58 |
|
|
|
16.25 |
|
|
| Dividends per
share |
|
.120 |
|
|
|
.120 |
|
|
|
.120 |
|
|
|
.120 |
|
|
|
.120 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ASSET QUALITY
RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nonperforming
loans/total loans |
|
.53 |
|
% |
|
.49 |
|
% |
|
.46 |
|
% |
|
.50 |
|
% |
|
.53 |
|
% |
| Nonperforming
assets/total assets |
|
.57 |
|
|
|
.62 |
|
|
|
.53 |
|
|
|
.59 |
|
|
|
.70 |
|
|
| Allowance for loan
losses/total loans |
|
.49 |
|
|
|
.50 |
|
|
|
.52 |
|
|
|
.51 |
|
|
|
.63 |
|
|
| Allowance for loan
losses/nonperforming loans |
|
92.23 |
|
|
|
102.09 |
|
|
|
114.58 |
|
|
|
102.31 |
|
|
|
117.48 |
|
|
| Texas ratio |
|
5.59 |
|
|
|
6.33 |
|
|
|
5.14 |
|
|
|
5.80 |
|
|
|
6.87 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PROFITABILITY
RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average
assets |
|
.97 |
|
% |
|
1.01 |
|
% |
|
.95 |
|
% |
|
.14 |
|
% |
|
.63 |
|
% |
| Return on average
equity |
|
8.36 |
|
|
|
8.95 |
|
|
|
8.16 |
|
|
|
1.58 |
|
|
|
7.61 |
|
|
| Net interest
margin |
|
4.55 |
|
|
|
4.64 |
|
|
|
4.60 |
|
|
|
4.26 |
|
|
|
4.19 |
|
|
| Average loans/average
deposits |
|
95.10 |
|
|
|
95.97 |
|
|
|
96.14 |
|
|
|
99.19 |
|
|
|
100.70 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| CAPITAL
ADEQUACY RATIOS |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Tier 1 leverage
ratio |
|
9.54 |
|
% |
|
9.24 |
|
% |
|
9.51 |
|
% |
|
9.39 |
|
% |
|
7.25 |
|
% |
| Tier 1 capital to risk
weighted assets |
|
12.28 |
|
|
|
11.95 |
|
|
|
12.62 |
|
|
|
11.87 |
|
|
|
8.79 |
|
|
| Total capital to risk
weighted assets |
|
12.79 |
|
|
|
12.47 |
|
|
|
13.17 |
|
|
|
12.39 |
|
|
|
9.43 |
|
|
| Average equity/average
assets (for the quarter) |
|
11.64 |
|
|
|
11.30 |
|
|
|
11.62 |
|
|
|
9.00 |
|
|
|
8.33 |
|
|
| Tangible
equity/tangible assets (at quarter end) |
|
10.06 |
|
|
|
9.64 |
|
|
|
10.13 |
|
|
|
9.92 |
|
|
|
7.62 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
Contact: Jesse A. Deering, EVP & Chief Financial
Officer (248) 290-5906
/jdeering@bankmbank.comWebsite: www.bankmbank.com
Grafico Azioni Mackinac Financial (NASDAQ:MFNC)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni Mackinac Financial (NASDAQ:MFNC)
Storico
Da Feb 2024 a Feb 2025
