MUNCIE, Ind., July 23, 2019 /PRNewswire/ -- MutualFirst
Financial, Inc. (NASDAQ: MFSF), the holding company of MutualBank
(the "Bank"), announced today net income available to common
shareholders for the second quarter ended June 30, 2019 was $5.8
million, or $0.66 diluted
earnings per common share. This compares to net income
available to common shareholders for the same period in 2018 of
$4.2 million, or $0.48 diluted earnings per common share. The net
income for the second quarter ended June 30,
2019 represents an annualized return on average assets of
1.11% and return on average tangible common equity of 12.24%
compared to 0.83% and 10.46%, respectively, for the same period of
last year.
Net income available to common shareholders for the first six
months of 2019 was $11.0 million, or
$1.26 diluted earnings per common
share. This compares to net income available to common
shareholders for the same period in 2018 of $8.2 million, or $0.98 diluted earnings per common share. The net
income for the six months ended June 30,
2019 represents an annualized return on average assets of
1.06% and return on average tangible common equity of 11.99%
compared to 0.88% and 10.49%, respectively, for the same period of
last year.
Other financial highlights for the second quarter and first six
months of 2019 include:
- Loans held for sale increased by $34.8
million as of June 30, 2019
compared to December 31, 2018.
The increase was a result of $27
million of portfolio mortgage loans being transferred to
held for sale along with increased mortgage banking activity.
- Commercial loans increased $20.2
million, or 11.6% on an annualized basis in the second
quarter of 2019 and $26.5 million, or
7.7% on an annualized basis in the first half of 2019.
- Non-residential consumer loans increased $7.1 million, or 10.3% on an annualized basis in
the second quarter of 2019 and $17.2
million, or 12.9% on an annualized basis in the first half
of 2019.
- Deposits increased $16.2 million,
or 4.2% on an annualized basis in the second quarter of 2019 and
$56.8 million, or 7.5% on an
annualized basis in the first half of 2019.
- Stockholders' equity increased by $14.5
million in the first half of 2019 due to net income of
$11.0 million and a net increase in
accumulated other comprehensive income of $9.1 million. This increase was
partially offset by stock repurchases of 76,729 shares at an
average price of $30.65 and common
stock dividends of $3.4 million.
"We are pleased with the first half of 2019 and our continued
earnings momentum," said David W.
Heeter, President and CEO.
Balance Sheet
Assets increased $42 million as of
June 30, 2019 compared to
December 31, 2018 primarily due to
growth in the overall loan portfolio. Loans held for sale
increased $34.8 million as
$27 million was transferred from
portfolio mortgage loans to take advantage of a reduction in market
rates and the ability to remove certain low rate mortgage loans
from the balance sheet. The gross loan portfolio, not including
loans held for sale, increased by $3.2
million primarily due to an increase in commercial loans of
$26.5 million, or 7.7% on an
annualized basis and an increase of non-residential consumer loans
of $17.2 million, or 12.9% on an
annualized basis in the first half of 2019. These increases
were offset by a decrease in residential loans of $40.6 million primarily due to the transfer of
portfolio mortgage loans to held for sale discussed above.
The mix of loans in our portfolio as of June
30, 2019 compared to December 31,
2018 shifted toward our desired strategic objective.
Commercial loans increased to 48.0% compared to 46.0%, residential
loans decreased to 33.1% compared to 36.2% and non-residential
consumer loans increased to 18.9% compared to 17.8%.
Deposits increased by $57 million
as of June 30, 2019 compared to
December 31, 2018. As of
June 30, 2019, core deposits totaled
$1.1 billion, or 67.2% of total
deposits and certificates of deposit totaled $517 million, or 32.8% of total deposits.
This is compared to a mix of core deposits of 67.9% and
certificates of deposit of 32.1% as of December 31, 2018.
Allowance for loan losses increased to $13.4 million as of June
30, 2019 compared to $13.3
million as of December 31,
2018. The allowance for loan losses to non-performing loans
as of June 30, 2019 was 226% compared
to 146% as of December 31, 2018.
The allowance for loan losses to total loans as of
June 30, 2019 was 0.90% compared to
0.89% as of December 31, 2018.
Non-performing loans to total loans at June
30, 2019 were 0.40% compared to 0.61% at December 31, 2018. Non-performing assets to
total assets were 0.39% at June 30,
2019 compared to 0.54% at December
31, 2018.
Stockholders' equity was $216.9
million at June 30, 2019, an
increase of $14.5 million from
December 31, 2018. The increases
included net income available to common shareholders of
$11.0 million and a net increase in
accumulated other comprehensive income of $9.1 million due to market value changes in the
investment portfolio. These increases were partially offset
by common stock cash dividends paid of $3.4
million during the first half of 2019 and stock repurchases
of 76,729 shares for $2.4 million.
The Company's tangible book value per common share as of
June 30, 2019 increased to
$22.38 compared to $20.51 as of December 31,
2018 and the tangible common equity ratio increased to 9.27%
as of June 30, 2019 compared to 8.72%
as of December 31, 2018.
Income Statement
Net interest income before the provision for loan losses
decreased $564,000 for the quarter
ended June 30, 2019 compared to the
same period in 2018. The decrease in net interest income was
a result of a decline in net interest margin of twenty-three basis
points that was partially offset by an increase of $61.4 million in average interest earning assets,
due primarily to organic loan growth. The decrease in net interest
margin is a result of the yield on interest earning assets
increasing four basis points which was offset by an increase in the
cost of interest-bearing liabilities of thirty-four basis
points. Purchase accounting accretion decreased eight basis
points in the second quarter of 2019 compared to the second quarter
of 2018. On a linked-quarter basis, net interest income
increased $2,000 as average interest
earning assets increased $15.3
million primarily offset by a two basis point decrease in
net interest margin. The decrease in net interest margin is a
result of the yield on interest earning assets increasing one basis
point being offset by an increase in the cost of interest-bearing
liabilities of five basis points.
Net interest income before the provision for loan losses
increased $1.9 million for the first
half of 2019 compared to the same period in 2018. The
increase was a result of an increase of $176.7 million in average interest earning assets
due primarily to the acquisition of Universal Bancorp in the first
quarter of 2018 and organic loan growth. This increase was
partially offset by the net interest margin decreasing to 3.34% in
the first half of 2019 compared to 3.46% in the first half of 2018.
The decrease in net interest margin is a result of the yield on
interest earning assets increasing seventeen basis points being
offset by an increase in the cost of interest-bearing liabilities
of thirty-six basis points.
Provision for loan losses in the second quarter of 2019 was
$475,000, a $25,000 decrease from last year's comparable
period. Provision for loan losses was calculated based on
management's ongoing evaluation of the adequacy of the allowance
for loan losses, which is partially attributable to an increasing
organic loan portfolio and net charge offs of $404,000, or 0.11% of total average loans on an
annualized basis, in the second quarter of 2019 compared to net
charge offs of $308,000, or 0.08% of
total average loans on an annualized basis, in the second quarter
of 2018. Heeter commented, "Credit quality remains
exceptionally strong."
The provision for loan losses for the first half of 2019 was
$950,000 the same as last year's
comparable period. Net charge-offs for the first half of 2019
equaled $796,000, or 0.11% of loans
on an annualized basis compared to $608,000, or 0.09% in the same period of
2018.
Non-interest income for the second quarter of 2019 was
$5.7 million, an increase of
$900,000 compared to the second
quarter of 2018. Increases in non-interest income included an
increase of $605,000 in gain on sale
of mortgage loans due to increased mortgage banking activity, an
increase of $316,000 in gain on sale
of securities and an increase of $82,000 in service fee income on deposit accounts
aided by increases in interchange fee income. On a linked-quarter
basis, non-interest income increased $619,000 primarily due to increases of
$311,000 in gain on sale of loans,
$233,000 in service fee income on
deposit accounts and $86,000 in
commission income.
Non-interest income for the first half of 2019 was $10.8 million, an increase of $1.5 million compared to the first half of
2018. An increase of $1.0
million in gain on sale of mortgage loans, an increase of
$606,000 in gain on sale of
securities and an increase of $326,000 in service fee income were partially
offset by a decrease of $229,000 in
other income primarily due to a death benefit received in the first
half of 2018 not repeated in the first half of 2019.
Non-interest expense decreased $1.5
million when comparing the second quarter of 2019 with the
same period in 2018. The decrease was primarily due to
expenses as a result of the acquisition and integration of
Universal, which included severance, integration and termination
expenses of $1.4 million in the
second quarter of 2018 with no similar activity in the same period
of 2019 along with cost saves generated from the acquisition.
On a linked-quarter basis, non-interest expense increased
$85,000 due to general expense
increases.
Non-interest expense increased $63,000 when comparing the first half of 2019
with the same period in 2018. Non-interest expense was
impacted by general expense increases due to timing of the
acquisition in 2018 primarily offset by one-time acquisition
related expenses of $2.0 million in
the first half of 2018 with no similar activity in the same period
of 2019.
The effective tax rate for the second quarter of 2019 was 13.2%
compared to 12.3% in the same quarter of 2018. The effective tax
rate for the first six months of 2019 was 13.6% compared to 12.5%
for the same period in 2018. The primary reason for the increase is
due to greater taxable income as a percentage of total income.
"We believe our earnings momentum will continue as we strive to
efficiently drive shareholder value," Mr. Heeter
concluded.
MutualFirst Financial, Inc. is the parent company of MutualBank,
an Indiana-based financial
institution since 1889. MutualBank has thirty-nine full-service
retail financial centers throughout Indiana. MutualBank has two offices located in
Fishers and Crawfordsville, Indiana specializing in wealth
management and trust services and a loan origination office in
New Buffalo, Michigan. MutualBank
also operates a wholly owned subsidiary named Summit Mortgage which
operates out of Fort Wayne,
Indiana. MutualBank provides a full range of financial
services including commercial and business banking, personal
banking, wealth management, trust services, investments and
internet banking services. The Company's stock is traded on the
NASDAQ Global Market under the symbol "MFSF". Additional
information can be found online at www.bankwithmutual.com.
Statements contained in this release, which are not historical
facts, are forward-looking statements, as that term is defined in
the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to risks and uncertainties,
which could cause actual results to differ from those currently
anticipated due to a number of factors, which include, but are not
limited to, factors discussed in documents filed by the Company
with the Securities and Exchange Commission from time to time.
MutualFirst
Financial, Inc. Selected Financials
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Audited)
|
|
|
|
|
June 30,
|
March 31,
|
December
31,
|
June 30,
|
|
|
Balance Sheet
(Unaudited):
|
2019
|
2019
|
2018
|
2018
|
|
|
|
(000)
|
(000)
|
(000)
|
(000)
|
|
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
32,944
|
$
31,350
|
$
33,414
|
$
33,005
|
|
|
Interest-bearing time
deposits
|
4,277
|
4,311
|
4,239
|
4,482
|
|
|
Investment securities
- AFS
|
375,948
|
373,937
|
370,875
|
362,162
|
|
|
Loans held for
sale
|
38,744
|
8,702
|
3,987
|
3,927
|
|
|
Loans,
gross
|
1,499,138
|
1,504,093
|
1,495,943
|
1,464,735
|
|
|
Allowance for loan
losses
|
(13,435)
|
(13,364)
|
(13,281)
|
(12,729)
|
|
|
Net loans
|
1,485,703
|
1,490,729
|
1,482,662
|
1,452,006
|
|
|
Premises and
equipment, net
|
24,969
|
25,188
|
25,641
|
25,984
|
|
|
FHLB of Indianapolis
stock
|
13,115
|
13,115
|
13,034
|
12,820
|
|
|
Deferred tax asset,
net
|
4,142
|
6,674
|
7,744
|
11,492
|
|
|
Cash value of life
insurance
|
60,787
|
60,462
|
60,160
|
59,531
|
|
|
Other real estate
owned and repossessed assets
|
2,259
|
1,752
|
2,013
|
1,942
|
|
|
Goodwill
|
22,310
|
22,310
|
22,310
|
22,479
|
|
|
Core deposit and
other intangibles
|
3,156
|
3,356
|
3,569
|
4,134
|
|
|
Other
assets
|
22,565
|
22,255
|
19,665
|
17,388
|
|
|
Total
assets
|
$
2,090,919
|
$
2,064,141
|
$
2,049,313
|
$
2,011,352
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Deposits
|
$
1,576,013
|
$
1,559,771
|
$
1,519,225
|
$
1,520,234
|
|
|
FHLB
advances
|
260,615
|
256,236
|
292,497
|
263,367
|
|
|
Other
borrowings
|
17,732
|
21,223
|
17,988
|
18,037
|
|
|
Other
liabilities
|
19,701
|
15,747
|
17,240
|
17,026
|
|
|
Stockholders'
equity
|
216,858
|
211,164
|
202,363
|
192,688
|
|
|
Total liabilities and
stockholders' equity
|
$
2,090,919
|
$
2,064,141
|
$
2,049,313
|
$
2,011,352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
Three
Months
|
Three
Months
|
|
Six Months
|
Six Months
|
|
Ended
|
Ended
|
Ended
|
|
Ended
|
Ended
|
|
June 30,
|
March 31,
|
June 30,
|
|
June 30,
|
June 30,
|
Income Statement
(Unaudited):
|
2019
|
2019
|
2018
|
|
2019
|
2018
|
|
(000)
|
(000)
|
(000)
|
|
(000)
|
(000)
|
|
|
|
|
|
|
|
Total interest and
dividend income
|
$
21,518
|
$
21,302
|
$
20,621
|
|
$
42,820
|
$
37,369
|
Total interest
expense
|
5,474
|
5,260
|
4,013
|
|
10,734
|
7,177
|
|
|
|
|
|
|
|
Net
interest income
|
16,044
|
16,042
|
16,608
|
|
32,086
|
30,192
|
Provision for loan
losses
|
475
|
475
|
500
|
|
950
|
950
|
Net interest income
after provision
|
|
|
|
|
|
|
for loan
losses
|
15,569
|
15,567
|
16,108
|
|
31,136
|
29,242
|
|
|
|
|
|
|
|
Non-interest
income
|
|
|
|
|
|
|
Service fee
income
|
2,041
|
1,808
|
1,959
|
|
3,849
|
3,523
|
Net realized gain on
sales of AFS securities
|
422
|
444
|
106
|
|
866
|
260
|
Commissions
|
1,282
|
1,196
|
1,368
|
|
2,478
|
2,630
|
Net gain on sale of
loans
|
1,341
|
1,030
|
736
|
|
2,371
|
1,371
|
Net servicing
fees
|
139
|
149
|
154
|
|
288
|
304
|
Increase in cash
value of life insurance
|
325
|
302
|
322
|
|
627
|
611
|
Net gain (loss) on
sale of other real estate and repossessed assets
|
(29)
|
(29)
|
11
|
|
(58)
|
(57)
|
Other
income
|
183
|
185
|
148
|
|
368
|
597
|
Total non-interest
income
|
5,704
|
5,085
|
4,804
|
|
10,789
|
9,239
|
|
|
|
|
|
|
|
Non-interest
expense
|
|
|
|
|
|
|
Salaries and employee
benefits
|
8,541
|
8,560
|
8,628
|
|
17,101
|
15,917
|
Net occupancy
expenses
|
996
|
1,044
|
995
|
|
2,040
|
1,892
|
Equipment
expenses
|
584
|
647
|
698
|
|
1,231
|
1,254
|
Data processing
fees
|
639
|
651
|
676
|
|
1,290
|
1,269
|
Advertising and
promotion
|
345
|
329
|
499
|
|
674
|
859
|
ATM and debit card
expense
|
598
|
562
|
573
|
|
1,160
|
1,044
|
Deposit
insurance
|
209
|
207
|
225
|
|
416
|
482
|
Professional
fees
|
472
|
408
|
472
|
|
880
|
1,254
|
Software
subscriptions and maintenance
|
816
|
769
|
691
|
|
1,585
|
1,285
|
Other real estate and
repossessed assets
|
70
|
53
|
44
|
|
123
|
89
|
Core deposit
intangible amortization
|
200
|
214
|
375
|
|
414
|
538
|
Other
expenses
|
1,174
|
1,115
|
2,287
|
|
2,289
|
3,257
|
Total non-interest
expense
|
14,644
|
14,559
|
16,163
|
|
29,203
|
29,140
|
|
|
|
|
|
|
|
Income before income
taxes
|
6,629
|
6,093
|
4,749
|
|
12,722
|
9,341
|
Income tax
provision
|
878
|
855
|
584
|
|
1,733
|
1,169
|
Net income available
to common shareholders
|
$
5,751
|
$
5,238
|
$
4,165
|
|
$
10,989
|
$
8,172
|
|
|
|
|
|
|
|
Pre-tax pre-provision
earnings (1)
|
$
7,104
|
$
6,568
|
$
5,249
|
|
$
13,672
|
$
10,291
|
Average
Balances, Net Interest Income, Yield Earned and Rates
Paid
|
|
|
|
|
|
|
|
|
Three
|
|
|
Three
|
|
|
|
months
ended
|
|
|
months
ended
|
|
|
|
6/30/2019
|
|
|
6/30/2018
|
|
|
Average
|
Interest
|
Average
|
Average
|
Interest
|
Average
|
|
Outstanding
|
Earned/
|
Yield/
|
Outstanding
|
Earned/
|
Yield/
|
|
Balance
|
Paid
|
Rate
|
Balance
|
Paid
|
Rate
|
|
(000)
|
(000)
|
(annualized)
|
(000)
|
(000)
|
(annualized)
|
Interest-earning
Assets:
|
|
|
|
|
|
|
Interest
-bearing deposits
|
$
23,281
|
$
68
|
1.17%
|
$
25,632
|
$
63
|
0.98%
|
Mortgage-backed
securities:
|
|
|
|
|
|
|
Available-for-sale
|
223,113
|
1,512
|
2.71
|
212,150
|
1,442
|
2.72
|
Investment
securities:
|
|
|
|
|
|
|
Available-for-sale
|
149,239
|
1,218
|
3.26
|
153,875
|
1,251
|
3.25
|
Loans
receivable
|
1,519,466
|
18,542
|
4.88
|
1,462,335
|
17,739
|
4.85
|
Stock in FHLB of
Indianapolis
|
13,115
|
178
|
5.43
|
12,820
|
126
|
3.93
|
Total
interest-earning assets (2)
|
1,928,214
|
21,518
|
4.46
|
1,866,812
|
20,621
|
4.42
|
Non-interest earning
assets, net of allowance
|
|
|
|
|
|
|
for loan
losses and unrealized gain/loss
|
147,814
|
|
|
135,591
|
|
|
Total assets
|
$
2,076,028
|
|
|
$
2,002,403
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
Demand and NOW
accounts
|
$
407,476
|
882
|
0.87
|
$
404,823
|
582
|
0.58
|
Savings
deposits
|
187,073
|
5
|
0.01
|
191,637
|
5
|
0.01
|
Money market
accounts
|
189,341
|
411
|
0.87
|
207,290
|
251
|
0.48
|
Certificate
accounts
|
513,837
|
2,603
|
2.03
|
456,284
|
1,703
|
1.49
|
Total
deposits
|
1,297,727
|
3,901
|
1.20
|
1,260,034
|
2,541
|
0.81
|
Borrowings
|
267,385
|
1,573
|
2.35
|
257,066
|
1,472
|
2.29
|
Total
interest-bearing liabilities
|
1,565,112
|
5,474
|
1.40
|
1,517,100
|
4,013
|
1.06
|
Non-interest bearing
deposit accounts
|
276,577
|
|
|
280,791
|
|
|
Other
liabilities
|
20,889
|
|
|
17,230
|
|
|
Total
liabilities
|
1,862,578
|
|
|
1,815,121
|
|
|
Stockholders'
equity
|
213,450
|
|
|
187,282
|
|
|
Total liabilities and stockholders' equity
|
$
2,076,028
|
|
|
$
2,002,403
|
|
|
|
|
|
|
|
|
|
Net interest earning
assets
|
$
363,102
|
|
|
$
349,712
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
16,044
|
|
|
$
16,608
|
|
|
|
|
|
|
|
|
Net interest rate
spread (4)
|
|
|
3.06%
|
|
|
3.36%
|
|
|
|
|
|
|
|
Net yield on average
interest-earning assets (4)
|
|
|
3.33%
|
|
|
3.56%
|
|
|
|
|
|
|
|
Net yield on average
interest-earning assets, tax equivalent (3)(4)
|
|
|
3.40%
|
|
|
3.63%
|
|
|
|
|
|
|
|
Average
interest-earning assets to
|
|
|
|
|
|
|
average
interest-bearing liabilities
|
|
|
123.20%
|
|
|
123.05%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
|
|
|
Six
|
|
|
|
months
ended
|
|
|
months
ended
|
|
|
|
6/30/2019
|
|
|
6/30/2018
|
|
|
Average
|
Interest
|
Average
|
Average
|
Interest
|
Average
|
|
Outstanding
|
Earned/
|
Yield/
|
Outstanding
|
Earned/
|
Yield/
|
|
Balance
|
Paid
|
Rate
|
Balance
|
Paid
|
Rate
|
|
(000)
|
(000)
|
(annualized)
|
(000)
|
(000)
|
(annualized)
|
Interest-earning
Assets:
|
|
|
|
|
|
|
Interest
-bearing deposits
|
$
23,985
|
$
156
|
1.30%
|
$
23,659
|
$
130
|
1.10%
|
Mortgage-backed
securities:
|
|
|
|
|
|
|
Available-for-sale
|
220,595
|
3,034
|
2.75
|
194,051
|
2,569
|
2.65
|
Investment
securities:
|
|
|
|
|
|
|
Available-for-sale
|
150,915
|
2,462
|
3.26
|
142,366
|
2,290
|
3.22
|
Loans
receivable
|
1,511,948
|
36,812
|
4.87
|
1,371,428
|
32,063
|
4.68
|
Stock in FHLB of
Indianapolis
|
13,101
|
356
|
5.43
|
12,293
|
317
|
5.16
|
Total
interest-earning assets (2)
|
1,920,544
|
42,820
|
4.46
|
1,743,797
|
37,369
|
4.29
|
Non-interest earning
assets, net of allowance
|
|
|
|
|
|
|
for loan
losses and unrealized gain/loss
|
144,020
|
|
|
122,249
|
|
|
Total assets
|
$
2,064,564
|
|
|
$
1,866,046
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
Demand and NOW
accounts
|
$
403,639
|
1,666
|
0.83
|
$
373,483
|
1,019
|
0.55
|
Savings
deposits
|
185,777
|
9
|
0.01
|
174,578
|
10
|
0.01
|
Money market
accounts
|
185,603
|
742
|
0.80
|
195,467
|
471
|
0.48
|
Certificate
accounts
|
511,206
|
5,057
|
1.98
|
431,089
|
3,147
|
1.46
|
Total
deposits
|
1,286,225
|
7,474
|
1.16
|
1,174,617
|
4,647
|
0.79
|
Borrowings
|
277,325
|
3,260
|
2.35
|
246,006
|
2,530
|
2.06
|
Total
interest-bearing liabilities
|
1,563,550
|
10,734
|
1.37
|
1,420,623
|
7,177
|
1.01
|
Non-interest bearing
deposit accounts
|
272,081
|
|
|
253,418
|
|
|
Other
liabilities
|
19,985
|
|
|
16,637
|
|
|
Total
liabilities
|
1,855,616
|
|
|
1,690,678
|
|
|
Stockholders'
equity
|
208,948
|
|
|
175,368
|
|
|
Total liabilities and stockholders' equity
|
$
2,064,564
|
|
|
$
1,866,046
|
|
|
|
|
|
|
|
|
|
Net interest earning
assets
|
$
356,994
|
|
|
$
323,174
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
32,086
|
|
|
$
30,192
|
|
|
|
|
|
|
|
|
Net interest rate
spread (4)
|
|
|
3.09%
|
|
|
3.28%
|
|
|
|
|
|
|
|
Net yield on average
interest-earning assets (4)
|
|
|
3.34%
|
|
|
3.46%
|
|
|
|
|
|
|
|
Net yield on average
interest-earning assets, tax equivalent (3)(4)
|
|
|
3.41%
|
|
|
3.53%
|
|
|
|
|
|
|
|
Average
interest-earning assets to
|
|
|
|
|
|
|
average
interest-bearing liabilities
|
|
|
122.83%
|
|
|
122.75%
|
|
Three
Months
|
Three
Months
|
Three
Months
|
|
Six Months
|
Six Months
|
|
Ended
|
Ended
|
Ended
|
|
Ended
|
Ended
|
|
June 30,
|
March 31,
|
June 30,
|
|
June 30,
|
June 30,
|
Selected
Financial Ratios and Other Financial Data (Unaudited):
|
2019
|
2019
|
2018
|
|
2019
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and per share
data:
|
|
|
|
|
|
|
Average common
shares outstanding:
|
|
|
|
|
|
|
Basic
|
8,602,257
|
8,621,406
|
8,577,017
|
|
8,611,779
|
8,196,083
|
Diluted
|
8,718,459
|
8,745,821
|
8,731,611
|
|
8,732,087
|
8,350,868
|
Per common
share:
|
|
|
|
|
|
|
Basic
earnings
|
$
0.67
|
$
0.61
|
$
0.49
|
|
$
1.28
|
$
1.00
|
Diluted
earnings
|
$
0.66
|
$
0.60
|
$
0.48
|
|
$
1.26
|
$
0.98
|
Dividends
|
$
0.20
|
$
0.20
|
$
0.18
|
|
$
0.40
|
$
0.36
|
|
|
|
|
|
|
|
Dividend payout
ratio
|
30.30%
|
33.33%
|
37.50%
|
|
31.75%
|
36.73%
|
|
|
|
|
|
|
|
Performance
Ratios:
|
|
|
|
|
|
|
Return
on average assets (ratio of net
|
|
|
|
|
|
|
income to average
total assets)(4)
|
1.11%
|
1.02%
|
0.83%
|
|
1.06%
|
0.88%
|
Return
on average tangible common equity (ratio of net
|
|
|
|
|
|
|
income to average
tangible common equity)(4)
|
12.24%
|
11.73%
|
10.46%
|
|
11.99%
|
10.49%
|
Interest
rate spread information:
|
|
|
|
|
|
|
Average during the period(4)
|
3.06%
|
3.11%
|
3.36%
|
|
3.09%
|
3.28%
|
|
|
|
|
|
|
|
Net interest margin(4)(5)
|
3.33%
|
3.35%
|
3.56%
|
|
3.34%
|
3.46%
|
|
|
|
|
|
|
|
Efficiency
Ratio
|
67.33%
|
68.91%
|
75.49%
|
|
68.11%
|
73.90%
|
|
|
|
|
|
|
|
Ratio of average interest-earning
|
|
|
|
|
|
|
assets to average
interest-bearing
|
|
|
|
|
|
|
liabilities
|
123.20%
|
122.47%
|
123.05%
|
|
122.83%
|
122.75%
|
|
|
|
|
|
|
|
Allowance for loan
losses:
|
|
|
|
|
|
|
Balance
beginning of period
|
$
13,364
|
$
13,281
|
$
12,537
|
|
$
13,281
|
$
12,387
|
Net
charge-offs (recoveries):
|
|
|
|
|
|
|
Real
Estate:
|
|
|
|
|
|
|
Commercial
|
33
|
51
|
-
|
|
84
|
53
|
Commercial
construction and development
|
-
|
-
|
-
|
|
-
|
-
|
Consumer closed end
first mortgage
|
31
|
40
|
56
|
|
71
|
68
|
Consumer open end and
junior liens
|
-
|
-
|
20
|
|
-
|
20
|
Total real estate
loans
|
64
|
91
|
76
|
|
155
|
141
|
Other
loans:
|
|
|
|
|
|
|
Auto
|
40
|
88
|
(1)
|
|
128
|
(11)
|
Boat/RV
|
241
|
171
|
185
|
|
412
|
316
|
Other
|
59
|
42
|
58
|
|
101
|
88
|
Commercial and
industrial
|
-
|
-
|
(10)
|
|
-
|
74
|
Total
other
|
340
|
301
|
232
|
|
641
|
467
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries)
|
404
|
392
|
308
|
|
796
|
608
|
Provision for loan
losses
|
475
|
475
|
500
|
|
950
|
950
|
Balance end of
period
|
$
13,435
|
$
13,364
|
$
12,729
|
|
$
13,435
|
$
12,729
|
|
|
|
|
|
|
|
Net loan charge-offs to average loans (4)
|
0.11%
|
0.10%
|
0.08%
|
|
0.11%
|
0.09%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
March 31,
|
December
31,
|
June 30,
|
|
|
|
2019
|
2019
|
2018
|
2018
|
|
|
|
|
|
|
|
|
|
Total shares
outstanding
|
8,551,233
|
8,624,462
|
8,603,462
|
8,587,424
|
|
|
Tangible book value
per common share
|
$
22.38
|
$
21.51
|
$
20.51
|
$
19.34
|
|
|
Tangible common
equity to tangible assets
|
9.27%
|
9.10%
|
8.72%
|
8.37%
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets (000's)
|
|
|
|
|
|
|
Non-accrual
loans
|
|
|
|
|
|
|
Real
Estate:
|
|
|
|
|
|
|
Commercial
|
$
848
|
$
1,281
|
$
4,782
|
$
1,753
|
|
|
Commercial
construction and development
|
-
|
-
|
62
|
-
|
|
|
Consumer closed end
first mortgage
|
3,984
|
3,759
|
2,777
|
2,661
|
|
|
Consumer open end and
junior liens
|
170
|
212
|
273
|
251
|
|
|
Total real estate
loans
|
5,002
|
5,252
|
7,894
|
4,665
|
|
|
Other
loans:
|
|
|
|
|
|
|
Auto
|
50
|
64
|
88
|
31
|
|
|
Boat/RV
|
616
|
646
|
470
|
290
|
|
|
Other
|
27
|
44
|
46
|
92
|
|
|
Commercial and
industrial
|
250
|
267
|
91
|
183
|
|
|
Total
other
|
943
|
1,021
|
695
|
596
|
|
|
Total non-accrual
loans
|
5,945
|
6,273
|
8,589
|
5,261
|
|
|
Accruing loans past
due 90 days or more
|
-
|
206
|
517
|
15
|
|
|
Total nonperforming
loans
|
5,945
|
6,479
|
9,106
|
5,276
|
|
|
Real estate owned
|
1,731
|
1,141
|
1,223
|
1,584
|
|
|
Other repossessed assets
|
528
|
611
|
790
|
358
|
|
|
Total
nonperforming assets
|
$
8,204
|
$
8,231
|
$
11,119
|
$
7,218
|
|
|
|
|
|
|
|
|
|
Performing
restructured loans (6)
|
$
1,148
|
$
1,087
|
$
2,571
|
$
1,525
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios:
|
|
|
|
|
|
|
Non-performing assets
to total assets
|
0.39%
|
0.40%
|
0.54%
|
0.36%
|
|
|
Non-performing loans
to total loans
|
0.40%
|
0.43%
|
0.61%
|
0.36%
|
|
|
Allowance for loan
losses to non-performing loans
|
226%
|
206%
|
146%
|
241%
|
|
|
Allowance for loan
losses to loans receivable
|
0.90%
|
0.89%
|
0.89%
|
0.87%
|
|
|
|
As of or
for
|
As of or
for
|
As of or
for
|
|
As of or
for
|
As of or
for
|
|
Three
Months
|
Three
Months
|
Three
Months
|
|
Six Months
|
Six Months
|
|
Ended
|
Ended
|
Ended
|
|
Ended
|
Ended
|
|
June 30,
|
March 31,
|
June 30,
|
|
June 30,
|
June 30,
|
Non-GAAP Measurements
(7)
|
2019
|
2019
|
2018
|
|
2019
|
2018
|
|
|
|
|
|
|
|
Total stockholders'
equity (GAAP)
|
$
216,858
|
$
211,164
|
$
192,688
|
|
$
216,858
|
$
192,688
|
Less: Intangible
assets
|
25,466
|
25,666
|
26,613
|
|
25,466
|
26,613
|
Tangible common
equity (non-GAAP)
|
$
191,392
|
$
185,498
|
$
166,075
|
|
$
191,392
|
$
166,075
|
|
|
|
|
|
|
|
Total assets
(GAAP)
|
$
2,090,919
|
$
2,064,141
|
$
2,011,352
|
|
$
2,090,919
|
$
2,011,352
|
Less: Intangible
assets
|
25,466
|
25,666
|
26,613
|
|
25,466
|
26,613
|
Tangible assets
(non-GAAP)
|
$
2,065,453
|
$
2,038,475
|
$
1,984,739
|
|
$
2,065,453
|
$
1,984,739
|
|
|
|
|
|
|
|
Tangible common
equity to tangible assets (non-GAAP)
|
9.27%
|
9.10%
|
8.37%
|
|
9.27%
|
8.37%
|
|
|
|
|
|
|
|
Book value per common
share (GAAP)
|
$
25.36
|
$
24.48
|
$
22.44
|
|
$
25.36
|
$
22.44
|
Less: Effect of
intangible assets
|
2.98
|
2.98
|
3.10
|
|
2.98
|
3.10
|
Tangible book value
per common share
|
$
22.38
|
$
21.51
|
$
19.34
|
|
$
22.38
|
$
19.34
|
|
|
|
|
|
|
|
Return on average
stockholders' equity (GAAP)
|
10.78%
|
10.25%
|
8.90%
|
|
10.52%
|
9.32%
|
Add: Effect of
intangible assets
|
1.46%
|
1.48%
|
1.56%
|
|
1.47%
|
1.17%
|
Return on average
tangible common equity (non-GAAP)
|
12.24%
|
11.73%
|
10.46%
|
|
11.99%
|
10.49%
|
|
|
|
|
|
|
|
Total tax free
interest income (GAAP)
|
|
|
|
|
|
|
Loans
receivable
|
$
101
|
$
102
|
$
108
|
|
$
203
|
$
208
|
Investment
securities
|
1,184
|
1,209
|
1,139
|
|
2,393
|
2,083
|
Total tax free
interest income
|
$
1,285
|
$
1,311
|
$
1,247
|
|
$
2,596
|
$
2,291
|
Total tax free
interest income, gross (at 21%, or 34% prior to 2018)
|
$
1,627
|
$
1,659
|
$
1,578
|
|
$
3,286
|
$
2,900
|
|
|
|
|
|
|
|
Net interest margin,
tax equivalent (non-GAAP)
|
|
|
|
|
|
|
Net interest income
(GAAP)
|
$
16,044
|
$
16,042
|
$
16,608
|
|
$
32,086
|
$
30,192
|
Add: Tax effect tax
free interest income (3)
|
342
|
348
|
331
|
|
690
|
609
|
Net interest income
(non-GAAP)
|
16,386
|
16,390
|
16,939
|
|
32,776
|
30,801
|
Divided by: Average
interest-earning assets
|
1,928,214
|
1,912,873
|
1,866,812
|
|
1,920,544
|
1,743,797
|
Net interest margin,
tax equivalent
|
3.40%
|
3.43%
|
3.63%
|
|
3.41%
|
3.53%
|
|
|
|
|
|
|
|
One-time merger
related expenses
|
|
|
|
|
|
|
Non-tax
deductible
|
$
-
|
$
-
|
$
-
|
|
$
-
|
$
220
|
Tax
deductible
|
-
|
-
|
1,387
|
|
-
|
1,772
|
Total one-time merger
related expenses
|
$
-
|
$
-
|
$
1,387
|
|
$
-
|
$
1,992
|
Subtract tax
benefit
|
-
|
-
|
291
|
|
-
|
372
|
Net one-time merger
related expenses
|
$
-
|
$
-
|
$
1,096
|
|
$
-
|
$
1,620
|
Net income
(GAAP)
|
-
|
-
|
4,165
|
|
-
|
8,172
|
Net income excluding
one-time merger expenses (non-GAAP)
|
$
-
|
$
-
|
$
5,261
|
|
$
-
|
$
9,792
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per share
|
|
|
|
|
|
|
Net income excluding
one-time merger expenses (non-GAAP)
|
$
-
|
$
-
|
$
5,261
|
|
$
-
|
$
9,792
|
Average diluted
shares
|
-
|
-
|
8,731,611
|
|
-
|
8,350,868
|
Adjusted diluted
earnings per share (non-GAAP)
|
$
-
|
$
-
|
$
0.60
|
|
$
-
|
$
1.17
|
|
|
|
|
|
|
|
Adjusted return on
assets
|
|
|
|
|
|
|
Net income excluding
one-time merger expenses (non-GAAP)
|
$
-
|
$
-
|
$
5,261
|
|
$
-
|
$
9,792
|
Average
assets
|
-
|
-
|
2,002,403
|
|
-
|
1,866,046
|
Adjusted return on
average assets (non-GAAP)
|
-
|
-
|
1.05%
|
|
-
|
1.05%
|
|
|
|
|
|
|
|
Adjusted return on
tangible common equity
|
|
|
|
|
|
|
Net income excluding
one-time merger expenses (non-GAAP)
|
$
-
|
$
-
|
$
5,261
|
|
$
-
|
$
9,792
|
Average tangible
common equity
|
-
|
-
|
159,225
|
|
-
|
155,751
|
Adjusted return on
average tangible common equity (non-GAAP)
|
-
|
-
|
13.22%
|
|
-
|
12.57%
|
|
|
|
|
|
|
|
Ratio
Summary:
|
|
|
|
|
|
|
Return on average
equity
|
10.78%
|
10.25%
|
8.90%
|
|
10.52%
|
9.32%
|
Return on average
tangible common equity
|
12.24%
|
11.73%
|
10.46%
|
|
11.99%
|
10.49%
|
Return on average
assets
|
1.11%
|
1.02%
|
0.83%
|
|
1.06%
|
0.88%
|
Tangible common
equity to tangible assets
|
9.27%
|
9.10%
|
8.37%
|
|
9.27%
|
8.37%
|
Net interest margin,
tax equivalent
|
3.40%
|
3.43%
|
3.63%
|
|
3.41%
|
3.53%
|
|
|
|
|
|
|
|
(1)
Pre-tax pre-provision income is calculated by taking net income
available to common shareholders and adding income tax provision
and provision for loan losses.
|
|
|
|
|
|
|
|
(2)
Calculated net of deferred loan fees, loan discounts, loans in
process and loss reserves.
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Tax
equivalent margin is calculated by taking non-taxable interest and
grossing up by 21% applicable tax rate.
|
|
|
|
|
|
|
|
|
|
|
(4)
Ratios for the three and six month periods have been
annualized.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) Net
interest income divided by average interest earning
assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
Performing restructured loans are excluded from non-performing
ratios. Restructured loans that are on non-accrual are in the
non-accrual loan categories.
|
|
|
|
|
|
|
|
|
(7) This
earnings release and selected financials contain GAAP financial
measures and non-GAAP financial measures where management believes
it to be helpful in understanding
MutualFirst's results of operations or financial position. This
table shows non-GAAP financial measures and the comparable
GAAP financial measure, as well as the reconciliation to
the comparable GAAP financial measure.
|
View original
content:http://www.prnewswire.com/news-releases/mutualfirst-financial-announces-second-quarter-earnings-300889379.html
SOURCE MutualFirst Financial, Inc.