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8-K - 8-K - MACKINAC FINANCIAL CORP /MI/a16-10882_18k.htm

Exhibit 99

 

 

PRESS RELEASE

 

For Release:

May 9, 2016

Nasdaq:

MFNC

Contact:

Ernie R. Krueger (906)341-7158

Website:

www.bankmbank.com

 

MACKINAC FINANCIAL CORPORATION REPORTS FIRST QUARTER 2016 RESULTS

 

(Manistique, Michigan) — Mackinac Financial Corporation (Nasdaq: MFNC) (the “Corporation”), the bank holding company for mBank, today announced first quarter 2016 income of $1.132 million, or $.18 per share, compared to net income of $1.371 million, or $.22 per share, for the first quarter of 2015.  The 2015 first quarter income was positively impacted by a one-time $.283 million credit mark accretion under GAAP from the acquired loan portfolio from Peninsula Bank (Pen). 2015 income adjusted for this item was $1.088 million, or $.17 per share.  Total assets of the Corporation at March 31, 2016 totaled $732.932 million compared to $728.844 million at March 31, 2015.

 

Shareholders’ equity at March 31, 2016 totaled $77.395 million, compared to $75.038 million on March 31, 2015. The tangible book value per share equated to $11.64 on March 31, 2016 compared to $11.20 per share a year ago. Weighted average shares outstanding totaled 6,214,083 shares in the 2016 first quarter compared to 6,256,475 for the same period in 2015.

 

Some highlights for the first quarter include:

 

·                  mBank, the Corporation’s primary asset, recorded net income of $1.486 million in the first quarter of 2016, compared to $1.627 million for the first quarter of 2015.  2015 income less the $.283 million one-time item was $1.344 million.

 

·                  Total loan production during the first three months of 2016 was $44.9 million versus $31.5 million for the same period in 2015, an increase of $13.4 million.

 

·                  Announcement of the purchase of First National Bank of Eagle River (Wisconsin) was made on January 19, 2016, and represents the company’s first expansion outside of Michigan.  The transaction was closed on April 29, 2016 and is expected to add approximately $125 million in assets, $80 million in loans and $100 million in core deposits to the company.

 

·                  Net interest margin has remained strong at 4.33% despite the continued low interest rate environment.

 

·                  Active secondary mortgage market activity with non-interest income stemming from that business line increasing from $.167 million to $.267 million year over year.

 

·                  Quarterly dividend on common stock of $.10 per share compared to $.075 per share one year ago.

 

Loans and Non-performing Assets

 

Total loans at March 31, 2016 were $618.625 million, an increase of $20.894 million from March 31, 2015 balances of $597.731 million.  New loan production was solid in the 2016 first quarter at $44.9 million, although some larger loan payoffs and normal loan principal amortization resulted in flat outstanding loan balances since year end. Commenting on

 

4



 

new loan production and overall lending activities, Kelly W. George, President and CEO of mBank stated, “We are very pleased with our overall loan production for the quarter with almost $26 million in new commercial originations and over $14 million in consumer, primarily mortgage, where we have seen a nice uptick in secondary market activity. We expect that trend to continue as we move into our more seasonal lending origination months and with the addition of our new Wisconsin markets through the recent acquisition of First National Bank of Eagle River. We are very excited to enter these markets given their close business ecology with our Upper Peninsula markets and similar clients in lending types and needs. Even with the favorable production that has outpaced 2015 significantly, we have not seen the aggregate loan balances grow comparatively as we would have anticipated with this level of production.  Some of this is attributable to normal amortization of the portfolio, but some is also due to the competition for good earning assets and our decision to remain steadfast on our pricing and credit structures to maintain long term balance sheet stability and allow some legacy loan relationships to exit where appropriate structures could not be attained. We continue to monitor this issue closely and do not view the issue as a trend that will continue and loan growth should increase at these production levels throughout the year.”

 

Nonperforming loans totaled $1.717 million, .28% of total loans at March 31, 2016 compared to $11.850 million, or 1.98%, of total loans at March 31, 2015 and down from the $2.539 million from December 31, 2015.  Total loan delinquencies greater than 30 days resided at a nominal .63%, or $3.818 million, at the end of the period. Mr. George, commenting on credit quality, stated, “Our credit quality risk metrics and overall loan portfolio payment performance remains strong with no significant loan issues within the portfolio. We continue to carry very low levels of ORE and what we do have is disposed of quickly to alleviate any long term carrying costs. As with the Peninsula Bank acquisition, in which our expectations have proven accurate to date, we are comfortable with our diligence on the Eagle River loan portfolio and corresponding purchase accounting marks and expect similar good results with the overall value and performance of the loans we are acquiring.”

 

Margin Analysis

 

Net interest income in the first quarter of 2016 remained mostly flat at $7.288 million, or 4.33%, compared to $7.520 million, or 4.53%, in the first quarter of 2015.  The 2015 net interest income and margin were positively impacted by the previously mentioned one-time accretion item from the Pen loan portfolio.  Mr. George stated, “We have been successful in maintaining our strong net interest margin within this historically low interest rate cycle though the use of continued targeted funding strategies and disciplined loan pricing in efforts to mitigate longer term interest rate risk. Our balance sheet remains well positioned to take advantage of any future upward short term interest rate movements should they occur this year. We will remain committed to our core banking philosophy which emphasizes loan growth as the best asset to invest in to benefit and help grow the economic bases in our local communities, which in turn also provides the best overall returns to our shareholders.”

 

Deposits

 

Total deposits of $592.978 million at March 31, 2016 decreased by $4.935 million, from deposits of $597.913 million on March 31, 2015 and were down from year end deposits of $610.323 million.  Mr. George, commenting on core deposits and overall liquidity needs, stated “The Corporation maintains a strong liquidity position to fund operations and loan growth. We proactively review our short and long term funding needs and review our pricing levels within the different segments of our deposit products in order to best manage our net interest margin to capture as many dollars as we can. Given the fairly flat growth pattern in our loan book near term, we have managed our deposit portfolio to maintain our margin and profitability.”

 

Noninterest Income/Expense

 

Noninterest income, at $.627 million in the first quarter of 2016, increased $.003 million from the first quarter 2015 level of $.624 million.  Year over year non-interest income levels remained flat even with a decrease in SBA\USDA sales which totaled $.118 million in the 2015 first quarter.  Secondary market fees increased $.100 million in the first quarter of 2016 compared to first quarter of 2015.  Noninterest expense, at $6.198 million in the first quarter of 2016, increased $.442 million, or 8%, from the first quarter of 2015. The increase from the first quarter of 2015 was largely attributable to strategic costs attributable to the First National Bank of Eagle River acquisition as well as customary employee compensation and retention related costs to ensure our personnel infrastructure keeps pace with our growing asset base and subsequent regulatory platform monitoring needs.

 

5



 

Assets and Capital

 

Total assets of the Corporation at March 31, 2016 were $732.932 million, up $4.088 million from the $728.844 million reported at March 31, 2015 and down $6.337 million from the $739.269 million of total assets at year-end 2015. Common shareholders’ equity at March 31, 2016 totaled $77.395 million, or $12.42 per share, compared to $75.038 million, or $11.99 per share on March 31, 2015.  The Corporation and the Bank are both “well-capitalized” with Tier 1 Capital at the Corporation of 11.54% and 12.83% at the Bank.

 

Paul D. Tobias, Chairman and Chief Executive Officer of Mackinac concluded, “We are pleased with the fairly priced acquisition opportunities that we are seeing and very satisfied with the execution of each of the Peninsula Bank and First National Bank of Eagle River mergers.  Our strategy of complimentary organic and acquired growth allows us to maintain discipline in the pricing and credit risk profile of our loans in these competitive times while still increasing our asset base to help spread our costs. This allows us to improve both short term earnings growth and long term stability and shareholder value.”

 

Mackinac Financial Corporation is a registered bank holding company formed under the Bank Holding Company Act of 1956 with assets in excess of $730 million 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 20 branch locations; thirteen in the Upper Peninsula, three in the Northern Lower Peninsula, one in Oakland County, Michigan, and three 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,” “view,” 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, branch closings 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.

 

6



 

MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES

SELECTED 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)

 

2016

 

2015

 

2015

 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

Selected Financial Condition Data (at end of period):

 

 

 

 

 

 

 

Assets

 

$

732,932

 

$

739,269

 

$

728,844

 

Loans

 

618,625

 

618,394

 

597,731

 

Investment securities

 

54,021

 

53,728

 

63,313

 

Deposits

 

592,978

 

610,323

 

597,913

 

Borrowings

 

56,454

 

45,754

 

49,839

 

Shareholders’ equity

 

77,395

 

76,602

 

75,038

 

 

 

 

 

 

 

 

 

Selected Statements of Income Data:

 

 

 

 

 

 

 

Net interest income

 

$

7,288

 

$

29,120

 

$

7,520

 

Income before taxes

 

1,717

 

7,929

 

2,083

 

Net income

 

1,132

 

5,596

 

1,371

 

Income per common share - Basic

 

.18

 

.90

 

.22

 

Income per common share - Diluted

 

.18

 

.89

 

.22

 

Weighted average shares outstanding

 

6,214,083

 

6,247,416

 

6,256,475

 

Weighted average shares outstanding- Diluted

 

6,214,083

 

6,278,817

 

6,268,742

 

 

 

 

 

 

 

 

 

Selected Financial Ratios and Other Data:

 

 

 

 

 

 

 

Performance Ratios:

 

 

 

 

 

 

 

Net interest margin

 

4.33

%

4.30

%

4.53

%

Return on average assets

 

.62

 

.76

 

.75

 

Return on average equity

 

5.89

 

7.41

 

7.54

 

 

 

 

 

 

 

 

 

Average total assets

 

$

737,088

 

$

738,688

 

$

737,496

 

Average total shareholders’ equity

 

77,284

 

75,545

 

73,776

 

Average loans to average deposits ratio

 

101.87

%

100.52

%

99.78

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Share Data at end of period:

 

 

 

 

 

 

 

Market price per common share

 

$

10.25

 

$

11.49

 

$

11.39

 

Book value per common share

 

12.42

 

12.32

 

11.99

 

Tangible book value per share

 

11.64

 

11.54

 

11.20

 

Dividends paid per share, annualized

 

.400

 

.400

 

.300

 

Common shares outstanding

 

6,231,246

 

6,217,620

 

6,257,450

 

 

 

 

 

 

 

 

 

Other Data at end of period:

 

 

 

 

 

 

 

Allowance for loan losses

 

$

4,824

 

$

5,004

 

$

5,527

 

Non-performing assets

 

$

4,401

 

$

4,863

 

$

14,482

 

Allowance for loan losses to total loans

 

.78

%

.81

%

.92

%

Non-performing assets to total assets

 

.60

%

.66

%

1.99

%

Texas ratio

 

5.61

%

6.34

%

19.16

%

 

 

 

 

 

 

 

 

Number of:

 

 

 

 

 

 

 

Branch locations

 

17

 

17

 

17

 

FTE Employees

 

178

 

173

 

168

 

 

8



 

MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

 

 

March 31,

 

December 31,

 

March 31,

 

 

 

2016

 

2015

 

2015

 

 

 

(Unaudited)

 

 

 

(Unaudited)

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

18,013

 

$

25,005

 

$

24,242

 

Federal funds sold

 

3

 

3

 

4

 

Cash and cash equivalents

 

18,016

 

25,008

 

24,246

 

 

 

 

 

 

 

 

 

Interest-bearing deposits in other financial institutions

 

4,989

 

5,089

 

5,832

 

Securities available for sale

 

54,021

 

53,728

 

63,313

 

Federal Home Loan Bank stock

 

2,169

 

2,169

 

2,973

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

Commercial

 

455,575

 

450,275

 

428,439

 

Mortgage

 

147,600

 

152,272

 

152,016

 

Consumer

 

15,450

 

15,847

 

17,276

 

Total Loans

 

618,625

 

618,394

 

597,731

 

Allowance for loan losses

 

(4,824

)

(5,004

)

(5,527

)

Net loans

 

613,801

 

613,390

 

592,204

 

 

 

 

 

 

 

 

 

Premises and equipment

 

12,491

 

12,524

 

12,614

 

Other real estate held for sale

 

2,684

 

2,324

 

2,632

 

Deferred tax asset

 

8,523

 

9,213

 

10,332

 

Deposit based intangibles

 

1,046

 

1,076

 

1,167

 

Goodwill

 

3,805

 

3,805

 

3,805

 

Other assets

 

11,387

 

10,943

 

9,726

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

732,932

 

$

739,269

 

$

728,844

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

Noninterest bearing deposits

 

$

117,704

 

$

122,775

 

$

104,689

 

NOW, money market, interest checking

 

207,068

 

202,784

 

206,824

 

Savings

 

31,994

 

30,882

 

29,470

 

CDs<$250,000

 

116,995

 

124,084

 

147,602

 

CDs>$250,000

 

7,910

 

8,532

 

9,471

 

Brokered

 

111,307

 

121,266

 

99,857

 

Total deposits

 

592,978

 

610,323

 

597,913

 

 

 

 

 

 

 

 

 

Borrowings

 

56,454

 

45,754

 

49,839

 

Other liabilities

 

6,105

 

6,590

 

6,054

 

Total liabilities

 

655,537

 

662,667

 

653,806

 

 

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY:

 

 

 

 

 

 

 

Preferred stock - No par value:

 

 

 

 

 

 

 

Authorized 500,000 shares, Issued and outstanding - none

 

 

 

 

Common stock and additional paid in capital - No par value

 

 

 

 

 

 

 

Authorized - 18,000,000 shares

 

 

 

 

 

 

 

Issued and outstanding - 6,231,246; 6,217,620; and 6,257,450 shares respectively

 

61,184

 

61,133

 

61,558

 

Retained earnings

 

15,746

 

15,221

 

12,706

 

Accumulated other comprehensive income

 

 

 

 

 

 

 

Unrealized gains on available for sale securities

 

514

 

297

 

823

 

Minimum pension liability

 

(49

)

(49

)

(49

)

 

 

 

 

 

 

 

 

Total shareholders’ equity

 

77,395

 

76,602

 

75,038

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

732,932

 

$

739,269

 

$

728,844

 

 

9



 

MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2016

 

2015

 

 

 

(Unaudited)

 

INTEREST INCOME:

 

 

 

 

 

Interest and fees on loans:

 

 

 

 

 

Taxable

 

$

7,960

 

$

8,225

 

Tax-exempt

 

2

 

3

 

Interest on securities:

 

 

 

 

 

Taxable

 

262

 

302

 

Tax-exempt

 

31

 

41

 

Other interest income

 

55

 

62

 

Total interest income

 

8,310

 

8,633

 

 

 

 

 

 

 

INTEREST EXPENSE:

 

 

 

 

 

Deposits

 

769

 

823

 

Borrowings

 

253

 

290

 

Total interest expense

 

1,022

 

1,113

 

 

 

 

 

 

 

Net interest income

 

7,288

 

7,520

 

Provision for loan losses

 

 

305

 

Net interest income after provision for loan losses

 

7,288

 

7,215

 

 

 

 

 

 

 

OTHER INCOME:

 

 

 

 

 

Deposit service fees

 

216

 

184

 

Income from loans sold on the secondary market

 

267

 

167

 

SBA/USDA loan sale gains

 

 

118

 

Mortgage servicing income

 

(54

)

31

 

Net security gains

 

97

 

10

 

Other

 

101

 

114

 

Total other income

 

627

 

624

 

 

 

 

 

 

 

OTHER EXPENSE:

 

 

 

 

 

Salaries and employee benefits

 

3,387

 

3,047

 

Occupancy

 

640

 

576

 

Furniture and equipment

 

383

 

399

 

Data processing

 

345

 

355

 

Advertising

 

156

 

126

 

Professional service fees

 

241

 

301

 

Loan and deposit

 

127

 

138

 

Writedowns and losses on other real estate held for sale

 

16

 

17

 

FDIC insurance assessment

 

108

 

108

 

Telephone

 

112

 

132

 

Transaction related expenses

 

106

 

 

Other

 

577

 

557

 

Total other expenses

 

6,198

 

5,756

 

 

 

 

 

 

 

Income before provision for income taxes

 

1,717

 

2,083

 

Provision for income taxes

 

585

 

712

 

 

 

 

 

 

 

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS

 

$

1,132

 

$

1,371

 

 

 

 

 

 

 

INCOME PER COMMON SHARE:

 

 

 

 

 

Basic

 

$

.18

 

$

.22

 

Diluted

 

$

.18

 

$

.22

 

 

10



 

MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES

LOAN PORTFOLIO AND CREDIT QUALITY

 

(Dollars in thousands)

 

Loan Portfolio Balances (at end of period):

 

 

 

March 31,

 

December 31,

 

March 31,

 

 

 

2016

 

2015

 

2015

 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

Commercial Loans:

 

 

 

 

 

 

 

Real estate - operators of nonresidential buildings

 

$

102,427

 

$

102,620

 

$

106,286

 

Hospitality and tourism

 

46,555

 

41,300

 

45,995

 

Lessors of residential buildings

 

29,194

 

25,930

 

21,545

 

Gasoline stations and convenience stores

 

21,614

 

21,647

 

13,965

 

Commercial construction

 

14,489

 

15,330

 

18,019

 

Real estate agents and managers

 

12,277

 

11,225

 

9,717

 

Other

 

229,019

 

232,223

 

212,912

 

Total Commercial Loans

 

455,575

 

450,275

 

428,439

 

 

 

 

 

 

 

 

 

1-4 family residential real estate

 

135,641

 

140,502

 

142,283

 

Consumer

 

15,450

 

15,847

 

17,276

 

Consumer construction

 

11,959

 

11,770

 

9,733

 

 

 

 

 

 

 

 

 

Total Loans

 

$

618,625

 

$

618,394

 

$

597,731

 

 

Credit Quality (at end of period):

 

 

 

March 31,

 

December 31,

 

March 31,

 

 

 

2016

 

2015

 

2015

 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

Nonperforming Assets :

 

 

 

 

 

 

 

Nonaccrual loans

 

$

1,523

 

$

2,353

 

$

11,801

 

Loans past due 90 days or more

 

44

 

32

 

49

 

Restructured loans

 

150

 

154

 

 

Total nonperforming loans

 

1,717

 

2,539

 

11,850

 

Other real estate owned

 

2,684

 

2,324

 

2,632

 

Total nonperforming assets

 

$

4,401

 

$

4,863

 

$

14,482

 

Nonperforming loans as a % of loans

 

.28

%

.41

%

1.98

%

Nonperforming assets as a % of assets

 

.60

%

.66

%

1.99

%

Reserve for Loan Losses:

 

 

 

 

 

 

 

At period end

 

$

4,824

 

$

5,004

 

$

5,527

 

As a % of average loans

 

.78

%

.83

%

.92

%

As a % of nonperforming loans

 

280.96

%

197.09

%

46.64

%

As a % of nonaccrual loans

 

316.74

%

212.66

%

46.84

%

Texas Ratio

 

5.61

%

6.34

%

19.16

%

 

 

 

 

 

 

 

 

Charge-off Information (year to date):

 

 

 

 

 

 

 

Average loans

 

$

615,684

 

$

602,904

 

$

600,052

 

Net charge-offs (recoveries)

 

$

180

 

$

1,340

 

$

(83

)

Charge-offs as a % of average loans, annualized

 

.12

%

.22

%

N/M

%

 

11



 

MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES
QUARTERLY FINANCIAL HIGHLIGHTS

 

 

 

QUARTER ENDED

 

 

 

(Unaudited)

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30, 2015

 

March 31,

 

 

 

2016

 

2015

 

2015

 

2015

 

2015

 

BALANCE SHEET (Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

618,625

 

$

618,394

 

$

619,906

 

$

615,247

 

$

597,731

 

Allowance for loan losses

 

(4,824

)

(5,004

)

(5,779

)

(5,600

)

(5,527

)

Total loans, net

 

613,801

 

613,390

 

614,127

 

609,647

 

592,204

 

Total assets

 

732,932

 

739,269

 

754,972

 

735,338

 

728,844

 

Core deposits

 

473,761

 

480,525

 

509,466

 

490,003

 

488,585

 

Noncore deposits

 

119,217

 

129,798

 

112,868

 

98,818

 

109,328

 

Total deposits

 

592,978

 

610,323

 

622,334

 

588,821

 

597,913

 

Total borrowings

 

56,454

 

45,754

 

49,593

 

64,483

 

49,839

 

Total shareholders’ equity

 

77,395

 

76,602

 

76,091

 

75,746

 

75,038

 

Total tangible equity

 

72,544

 

71,721

 

71,180

 

70,805

 

70,066

 

Total shares outstanding

 

6,231,246

 

6,217,620

 

6,249,595

 

6,236,250

 

6,257,450

 

Weighted average shares outstanding

 

6,214,083

 

6,225,614

 

6,247,416

 

6,245,553

 

6,256,475

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES (Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

$

737,088

 

$

733,035

 

$

751,153

 

$

732,979

 

$

737,496

 

Loans

 

615,684

 

613,846

 

614,315

 

607,330

 

600,052

 

Deposits

 

604,363

 

602,857

 

624,528

 

594,266

 

601,834

 

Equity

 

77,284

 

75,871

 

76,362

 

75,564

 

73,776

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT (Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

7,288

 

$

7,365

 

$

7,235

 

$

7,000

 

$

7,520

 

Provision for loan losses

 

 

349

 

350

 

200

 

305

 

Net interest income after provision

 

7,288

 

7,016

 

6,885

 

6,800

 

7,215

 

Total noninterest income

 

627

 

1,142

 

773

 

1,350

 

624

 

Total noninterest expense

 

6,198

 

6,306

 

6,114

 

5,700

 

5,756

 

Income before taxes

 

1,717

 

1,852

 

1,544

 

2,450

 

2,083

 

Provision for income taxes

 

585

 

259

 

526

 

836

 

712

 

Net income available to common shareholders

 

$

1,132

 

$

1,593

 

$

1,018

 

$

1,614

 

$

1,371

 

Income pre-tax, pre-provision

 

$

1,717

 

$

2,201

 

$

1,894

 

$

2,650

 

$

2,388

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

$

.18

 

$

.26

 

$

.16

 

$

.26

 

$

.22

 

Book value per common share

 

12.42

 

12.32

 

12.18

 

12.15

 

11.99

 

Tangible book value per share

 

11.64

 

11.54

 

11.39

 

11.35

 

11.20

 

Market value, closing price

 

10.25

 

11.49

 

10.10

 

10.53

 

11.39

 

Dividends per share

 

.100

 

.100

 

.100

 

.075

 

.075

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans/total loans

 

.28

%

.50

%

1.30

%

1.57

%

1.98

%

Nonperforming assets/total assets

 

.60

 

.73

 

1.37

 

1.64

 

1.99

 

Allowance for loan losses/total loans

 

.78

 

.81

 

.93

 

.91

 

.92

 

Allowance for loan losses/nonperforming loans

 

280.96

 

197.09

 

71.99

 

58.02

 

46.64

 

Texas ratio (1)

 

5.61

 

6.34

 

13.41

 

15.76

 

19.16

 

 

 

 

 

 

 

 

 

 

 

 

 

PROFITABILITY RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

.62

%

.86

%

.54

%

.88

%

.75

%

Return on average equity

 

5.89

 

8.33

 

5.28

 

8.57

 

7.54

 

Net interest margin

 

4.33

 

4.34

 

4.18

 

4.17

 

4.53

 

Efficiency ratio

 

78.90

 

72.16

 

76.13

 

69.94

 

74.27

 

Average loans/average deposits

 

101.87

 

101.82

 

98.36

 

102.20

 

99.78

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPITAL ADEQUACY RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage ratio

 

9.55

%

9.81

%

9.02

%

9.14

%

8.75

%

Tier 1 capital to risk weighted assets

 

10.82

 

10.23

 

10.28

 

10.18

 

10.33

 

Total capital to risk weighted assets

 

11.57

 

11.94

 

11.17

 

11.04

 

11.22

 

Average equity/average assets (for the quarter)

 

10.49

 

11.19

 

10.19

 

10.31

 

10.00

 

Tangible equity/tangible assets (at quarter end)

 

9.96

 

9.77

 

9.49

 

9.68

 

9.68

 

 


(1) Texas ratio equals nonperforming assets divided by tangible shareholders’ equity plus allowance for loan losses

 

12