Mackinac Financial Corporation Reports 2019 Fourth Quarter and Annual Results

Company Release - 1/29/2020 9:00 AM ET

MANISTIQUE, Mich., Jan. 29, 2020 (GLOBE NEWSWIRE) -- Mackinac Financial Corporation (Nasdaq: MFNC) (the “Corporation”), the bank holding company for mBank, today announced 2019 net income of $13.85 million, or $1.29 per share, compared to 2018 net income of $8.37 million, or $.94 per share. 

Overall Quarterly Loan Production
Overall Quarterly Loan Production


2019 New Loan Production
2019 New Loan Production


Total Loans by Region December 31, 2019
Total Loans by Region December 31, 2019


Margin Analysis Per Quarter
Margin Analysis Per Quarter


The 2019 results include the effects of a $140 thousand one-time non-cash amortization related to an acquired tax credit impacting tax expense (and tax rate).  The 2018 results included expenses related to the acquisitions of First Federal of Northern Michigan (“FFNM”), and Lincoln Community Bank (“Lincoln”), which had a collective after-tax impact of $2.46 million on earnings.  Adjusted core income (net of the one-time non-cash expense) for 2019 was $13.99 million, or $1.30 per share compared to 2018 adjusted core income (net of the transaction related expense) of $10.83 million, or $1.22 per share.

Weighted average shares outstanding for 2019 were 10,737,653 compared to 8,891,967 for 2018. Weighted average shares outstanding for the fourth quarter 2019 were 10,748,712 compared to 10,712,745 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 in the common stock offering completed in June, 2018. 

The Corporation had fourth quarter 2019 net income of $3.30 million, or $.31 per share, compared to 2018 fourth quarter net income of $3.36 million, or $.31 per share.  The 2019 fourth quarter results include the effects of the $140 thousand one-time non-cash amortization of an acquired tax credit.  The 2018 fourth quarter results were impacted by acquisition related expenses of $386 thousand on an after-tax basis. Adjusted core income (net of the one-time expenses) for the fourth quarter 2019 was $3.44 million, or $.32 per share, while 2018 fourth quarter income, excluding tax-affected transaction related expenses, was $3.75 million, or $.35 per share.   

Total assets of the Corporation at December 31, 2019 were $1.32 billion, compared to $1.32 billion at December 31, 2018.  Shareholders’ equity at December 31, 2019 totaled $161.92 million, compared to $152.07 million at December 31, 2018.  Book value per share outstanding equated to $15.06 at year-end 2019, compared to $14.20 per share outstanding a year ago.  Tangible book value at year-end 2019 was $137.30 million, or $12.77 per share outstanding compared to $124.33 million, or $11.61 per share, at year-end 2018. 

Additional notes:

  • mBank, the Corporation’s primary asset, recorded net income of $15.07 million in 2019, which resulted in an ROAA of 1.13%, compared to $9.04 million in 2018.  Bank-level income was also impacted by the one-time $140 thousand tax credit amortization.  In December, 2018, mBank had an internal tax allocation expense between it and the Corporation (MFNC) of $1.34 million.  Adjusted core net income for 2019 was $15.21 million, compared to 2018 adjusted core net income (including total adjustments for the tax reallocation and transaction related expenses of $3.16 million on an after-tax basis) of $12.20 million. Adjusted bank core net income grew approximately 25% resulting in adjusted ROAA of 1.16% for 2019.
     
  • Strong bank deposit activity drove increases of $56.28 million (or 5.9%) in 2019 through more proactive sales activity in the Treasury Management line of business and increased marketing efforts in key retail markets.
     
  • Reliance on higher-cost brokered deposits continues to decrease significantly from $136.76 million, or 12.46% of total deposits at year-end 2018, to $58.62 million, or 5.44% of total deposits at year-end 2019.
     
  • Overall new loan production for 2019 was $385.55 million, compared to $286.88 million for 2018, an increase of $98.67 million, or 34%.
     
  • Fourth quarter 2019 net interest margin remained solid at 4.39%.  Core operating margin for the fourth quarter, which is net of accretive yield from purchase accounting treatment on acquired loans (“accretion”), was 4.23%.

Revenue

Total revenue of the Corporation for 2019 was $70.34 million, compared to $59.64 million in 2018.  Total revenue for the three months ended December 31, 2019 equated to $17.61 million, compared to $17.54 million for the same period of 2018. 

  • Total interest income for 2019 was $64.38 million, compared to $55.38 million for the same period in 2018.   Fourth quarter 2019 interest income equated to $15.77 million, compared to $16.09 million in the fourth quarter of 2018. 
     
  • 2019 Noninterest Income was $5.95 million compared to $4.26 million for 2018.  Fourth quarter 2019 noninterest income was $1.85 million, compared to $1.44 million for the same period of 2018. 

The year-over-year improvement is a combination of the operating scale provided by the two 2018 acquisitions, as well as continued focus on drivers of noninterest income, including secondary market mortgage and SBA loan guarantee sales. The 2019 fourth quarter interest income included accretive yield of $488 thousand from combined credit mark accretion associated with acquisitions, compared to $946 thousand in the same period of 2018. 

Loan Production and Portfolio Mix

Total balance sheet loans at December 31, 2019 were $1.06 billion, compared to December 31, 2018 balances of $1.04 billion.  Total loans under management reside at $1.36 billion, which includes $297.41 million of service retained loans.  Loan production for the fourth quarter of 2019 was $96.40 million, compared to $82.91 million for the fourth quarter of 2018.  Increased production was evident in all lines of business and across the entire market footprint, but driven primarily through commercial lending activities, which were up $65 million year-over-year.  The Corporation also saw an increase in secondary market mortgage production in light of the drop in market rates that most other banks also experienced. New production efforts have resulted in 2019 organic balance sheet loan growth of $20 million, or annualized growth of approximately 2%. 

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a0ceb772-8f8f-48e9-9ece-651a7533a9f8

A table accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9b19d542-b697-4622-8713-ce626a950595

Payoff activity, outside of normal amortization, continued to constrain portfolio growth with approximately $140 million of total principal reduction ahead of original terms during 2019.  Of this amount, $89 million came from the commercial portfolio, with $32 million of the total being related to borrowers divesting of the collateral and $28 million refinanced at pricing or terms that the Corporation was not able or willing to offer.  

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/beda9321-30c5-48cc-b5fe-80e3622c476f

Commenting on new loan production and overall lending activities, President of the Corporation and President and CEO of mBank, Kelly W. George, stated, “Our new loan production in 2019 ended in line with our yearly targets and we remain pleased with the origination activity in our lending business. We continue to see good loan opportunities in all of our markets, both on the commercial and retail side, with a solid pipeline moving into 2020.  However, payoff activity has remained consistently higher than normal through 2019, which impeded balance sheet growth. More normalized levels would have resulted in portfolio growth in the 5% to 7% range, which were our expectations. Sale of businesses or collateral and terms outside our lending parameters, both from a yield and structure standpoint from a variety of lending conduits, were the primary drivers of payoff activity within the commercial line of business.”  

Credit Quality

Nonperforming loans totaled $5.18 million, or .49% of total loans at December 31, 2019, compared to $5.08 million, or .49% of total loans at December 31, 2018. Total loan delinquencies greater than 30 days resided at a nominal 1.1%, compared to .96% at year end 2018.  The nonperforming assets to total assets ratio resided at .56% for the fourth quarter of 2019, compared to .62% for the fourth quarter of 2018. Commenting on overall credit risk, Mr. George stated, “Credit quality of the Corporation remains very solid.  We have seen no adverse systemic risk indicators within any of our lending lines of business. We believe that stable market conditions and forecasted lower rates should help continue this positive trend into 2020. Purchase accounting marks from the previously acquired banks have continued to prove accurate, attaining expected accretion levels, which should continue into future periods.”

Margin Analysis and Funding

Net interest income for 2019 was $53.91 million, equating to a Net Interest Margin (“NIM”) of 4.57%, compared to $47.13 million in 2018 and a NIM of 4.44%.  Core operating margin, which is net of accretion from acquired loans that were subject to purchase accounting adjustments, was 4.39% for 2019 and 4.21% for 2018.  Net interest income for the fourth quarter of 2019 was $13.35 million, with $488 thousand of accretion, resulting in a Net Interest Margin of 4.39%, compared to $13.795 million in the fourth quarter of 2018, with $946 thousand of accretion and a NIM of 4.64%.  Core operating margin, which is net of accretion from acquired loans, was 4.23% for the fourth quarter 2019 and 4.32% for the same period of 2018. 

As illustrated in the chart below, core NIM remains comparatively strong but was negatively impacted, as were the margins of most banks, by the Federal Reserve Bank (the “Fed”) rate moves in the third and fourth quarters.  The Fed activity primarily impacted the Corporation’s prime-based variable rate loan portfolio. 

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a5311e5f-3551-4bee-b498-6b20c2dabe1e

Total bank deposits have increased by $56.28 million year-over-year from $960.78 million at December, 2018 to $1.02 billion at year-end 2019 as a result of strong organic efforts.  Total brokered deposits have decreased significantly and were $58.62 million at December 31, 2019, compared to $136.76 million at December 31, 2018, a decrease of 56%.  FHLB (Federal Home Loan Bank) and other borrowings were slightly increased to $64.55 million at the end of the fourth quarter 2019 from $57.54 million at the end of the fourth quarter 2018.  This increase was due to the Corporation opportunistically extending the duration of roughly $25 million of liability funding to take advantage of the inverted yield curve in mid-2019. The overall duration of wholesale funding remains very manageable and short term in nature.

Mr. George stated, “The Corporation’s margin remains strong despite the three Fed rate cuts.  We have maintained discipline on pricing of both the loan and deposit portfolio, while being proactive to market competition in managing offered rates. With our bank deposits up roughly $56 million since year-end 2018, our strong liquidity position has allowed for continued reduction in higher cost brokered deposits over the course of 2019, which strengthens our balance sheet. Our focus on new core deposit procurement remains a key initiative for 2020, as we will look to continue to wind down our wholesale funding exposure through aggressive marketing and business development initiatives in our retail banking commerce hubs and within our Treasury Management line of business throughout our entire footprint.”

Operating Expenses

Total 2019 noninterest expense was $41.77 million, or roughly $10.45 million average per quarter, compared to $40.30 million for full year 2018, or $10.08 million average per quarter.  The increase is directly related to the larger operating platform following the multiple acquisitions in 2018 and the increase in overall employee base that was fully in place in 2019. Noninterest expense for the fourth quarter of 2019 was $10.81 million, compared to $10.68 million for the same period of 2018.  Fourth quarter 2019 noninterest expense was impacted by a $120 thousand pre-tax non-cash Director compensation item, and to a lesser degree, some seasonal occupancy and benefit related expenses.

Assets and Capital

Total assets of the Corporation at December 31, 2019 were $1.32 billion, compared to $1.32 billion at December 31, 2018.  Shareholders’ equity at December 31, 2019 totaled $161.92 million, compared to $152.07 million at December 31, 2018.  Book value per share outstanding equated to $15.06 at year-end 2019, compared to $14.20 per share outstanding a year ago.  Tangible book value at year-end 2019 was $137.30 million, or $12.77 per share, compared to $124.33 million, or $11.61 per share, at year-end 2018.  Both the Corporation and the Bank are “well-capitalized” with total risk-based capital to risk-weighted assets of 13.22% and 13.06%, respectively, and tier 1 capital to total tier 1 average assets at the Corporation of 10.09% and at the Bank of 9.96%.

Paul D. Tobias, Chairman and Chief Executive Officer of the Corporation and Chairman of mBank concluded, “Overall we are pleased with the Corporation’s performance in 2019.  As did most financial institutions, we saw the effects of the interest rate environment shift on our second-half earnings.  However, our strong core bank fundamentals allowed us to record improved year-over-year earnings per share and increase shareholder value while increasing our dividend and at the same time maintaining our safe and sound risk profile.”

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 Corporation’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 Corporation 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.

 
MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
 
  As of and For the As of and For the 
  Period Ending Year Ending 
  December 31, December 31, 
(Dollars in thousands, except per share data)  2019  2018 
  (Unaudited) (Unaudited) 
Selected Financial Condition Data (at end of period):    
Assets $ 1,320,069 $1,318,040 
Loans  1,058,776  1,038,864 
Investment securities  107,972  116,748 
Deposits  1,075,677  1,097,537 
Borrowings  64,551  60,441 
Shareholders' equity  161,919  152,069 
      
Selected Statements of Income Data:     
Net interest income $ 53,907 $47,130 
Income before taxes  17,710  10,593 
Net income  13,850  8,367 
Income per common share - Basic  1.29  0.94 
Income per common share - Diluted  1.29  0.94 
Weighted average shares outstanding - Basic  10,737,653  8,891,967 
Weighted average shares outstanding- Diluted  10,757,507  8,921,658 
      
Selected Financial Ratios and Other Data:     
Performance Ratios:      
Net interest margin  4.57% 4.44%
Efficiency ratio  69.10  77.70 
Return on average assets  1.04  0.71 
Return on average equity  8.78  6.94 
      
Average total assets $ 1,332,882 $1,177,455 
Average total shareholders' equity  157,831  120,478 
Average loans to average deposits ratio  95.03% 97.75%
      
Common Share Data at end of period:     
Market price per common share $ 17.56 $13.65 
Book value per common share  15.06  14.20 
Tangible book value per share  12.77  11.61 
Dividends paid per share, annualized  0.520  0.480 
Common shares outstanding  10,748,712  10,712,745 
      
Other Data at end of period:     
Allowance for loan losses $ 5,308 $5,183 
Non-performing assets  7,377  8,196 
Allowance for loan losses to total loans  0.49% 0.50%
Non-performing assets to total assets  0.56% 0.62%
Texas ratio  4.41% 6.33%
      
Number of:     
  Branch locations  29  29 
  FTE Employees  304  288 

 

 
MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 
  December 31, December 31,
  2019 2018
   (Unaudited)  (Audited)
ASSETS      
       
Cash and due from banks $49,794  $64,151 
Federal funds sold  32   6 
Cash and cash equivalents  49,826   64,157 
       
Interest-bearing deposits in other financial institutions  10,295   13,452 
Securities available for sale  107,972   116,748 
Federal Home Loan Bank stock  4,924   4,924 
       
Loans:      
Commercial  765,524   717,032 
Mortgage  272,014   301,461 
Consumer  21,238   20,371 
Total Loans  1,058,776   1,038,864 
Allowance for loan losses  (5,308)  (5,183)
Net loans  1,053,468   1,033,681 
       
Premises and equipment  23,608   22,783 
Other real estate held for sale  2,194   3,119 
Deferred tax asset  3,732   5,763 
Deposit based intangibles  5,043   5,720 
Goodwill  19,574   22,024 
Other assets  39,433   25,669 
       
TOTAL ASSETS $1,320,069  $1,318,040 
       
LIABILITIES AND SHAREHOLDERS’ EQUITY      
       
LIABILITIES:      
Deposits:      
Noninterest bearing deposits $287,611  $241,556 
NOW, money market, interest checking  373,165   368,890 
Savings  109,548   111,358 
CDs<$250,000  233,956   225,236 
CDs>$250,000  12,775   13,737 
Brokered  58,622   136,760 
Total deposits  1,075,677   1,097,537 
       
Federal funds purchased  6,225   2,905 
Borrowings  64,551   57,536 
Other liabilities  11,697   7,993 
Total liabilities  1,158,150   1,165,971 
       
SHAREHOLDERS’ EQUITY:      
Common stock and additional paid in capital - No par value Authorized - 18,000,000 shares Issued and outstanding - 10,748,712 and 10,712,745 respectively  129,564   129,066 
Retained earnings  31,740   23,466 
Accumulated other comprehensive income (loss)      
Unrealized (losses) gains on available for sale securities  1,025   (245)
Minimum pension liability  (410)  (218)
Total shareholders’ equity  161,919   152,069 
       
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,320,069  $1,318,040 


 
MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
 
  For the Years Ended
  December 31,
   2019  2018  2017 
  (Unaudited) (Audited) (Audited)
INTEREST INCOME:      
  Interest and fees on loans:      
  Taxable $ 59,673 $51,407 $41,770 
  Tax-exempt  187  123  95 
  Interest on securities:      
  Taxable  2,708  2,408  1,606 
  Tax-exempt  343  338  298 
  Other interest income  1,473  1,101  607 
  Total interest income  64,384  55,377  44,376 
       
INTEREST EXPENSE:      
  Deposits  9,436  6,492  4,361 
  Borrowings  1,041  1,755  2,077 
  Total interest expense  10,477  8,247  6,438 
       
Net interest income  53,907  47,130  37,938 
Provision for loan losses  385  500  625 
Net interest income after provision for loan losses  53,522  46,630  37,313 
       
OTHER INCOME:      
  Deposit service fees  1,586  1,441  1,056 
  Income from loans sold on the secondary market  1,889  1,289  1,373 
  SBA/USDA loan sale gains  908  661  867 
  Mortgage servicing amortization  693  197  (31)
  Net security gains  208  -  231 
  Other  669  675  545 
  Total other income  5,953  4,263  4,041 
       
OTHER EXPENSE:      
  Salaries and employee benefits  22,743  20,064  15,490 
  Occupancy  4,069  3,640  3,104 
  Furniture and equipment  3,000  2,548  2,209 
  Data processing  2,717  2,503  2,037 
  Advertising  889  905  711 
  Professional service fees  2,100  1,575  1,534 
  Loan origination expenses and deposit and card related fees  1,546  1,166  1,335 
  Writedowns and losses on other real estate held for sale  212  182  388 
  FDIC insurance assessment  70  700  731 
  Communications expense  885  726  604 
  Transaction related expenses  -  2,951  50 
  Other  3,534  3,340  2,143 
  Total other expenses  41,765  40,300  30,336 
       
Income before provision for income taxes  17,710  10,593  11,018 
Provision for income taxes  3,860  2,226  5,539 
       
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 13,850 $8,367 $5,479 
       
INCOME PER COMMON SHARE:      
  Basic $ 1.29 $0.94 $0.87 
  Diluted $ 1.29 $0.94 $0.87 
       

 



MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES 
LOAN PORTFOLIO AND CREDIT QUALITY 
  
(Dollars in thousands) 
  
Loan Portfolio Balances (at end of period) 
  
 December 31, December 31, 
  2019  2018 
 (Unaudited) (Unaudited) 
Commercial Loans:    
Real estate - operators of nonresidential buildings$ 141,965 $150,251 
Hospitality and tourism 97,721  77,598 
Lessors of residential buildings 51,085  50,204 
Gasoline stations and convenience stores 27,176  24,189 
Logging 22,136  20,860 
Commercial construction 40,107  29,765 
Other 385,334  364,165 
  Total Commercial Loans 765,524  717,032 
     
1-4 family residential real estate 253,918  286,908 
Consumer 21,238  20,371 
Consumer construction 18,096  14,553 
     
  Total Loans$ 1,058,776 $1,038,864 
     


  
Credit Quality (at end of period): 
     
 December 31, December 31, 
  2019  2018 
 (Unaudited) (Unaudited) 
Nonperforming Assets :    
Nonaccrual loans$ 5,172 $5,054 
Loans past due 90 days or more 11  23 
Restructured loans -  - 
  Total nonperforming loans 5,183  5,077 
Other real estate owned 2,194  3,119 
  Total nonperforming assets$ 7,377 $8,196 
Nonperforming loans as a % of loans 0.49% 0.49%
Nonperforming assets as a % of assets 0.56% 0.62%
Reserve for Loan Losses:    
At period end$ 5,308 $5,183 
As a % of outstanding loans 0.50% 0.50%
As a % of nonperforming loans 102.41% 102.09%
As a % of nonaccrual loans 102.63% 102.55%
Texas Ratio 4.41% 6.33%
     
Charge-off Information (year to date):   
  Average loans$ 1,047,439 $941,221 
  Net charge-offs (recoveries)$ 260 $396 
  Charge-offs as a % of average    
  loans, annualized 0.02% 0.04%



  
MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES 
QUARTERLY FINANCIAL HIGHLIGHTS 
  
           
 QUARTER ENDED 
 (Unaudited) 
 December 31, September 30, June 30, March 31, December 31 
  2019   2019   2019   2019   2018  
BALANCE SHEET (Dollars in thousands)          
           
Total loans$ 1,058,776  $1,059,942  $1,060,703  $1,045,428  $1,038,864  
Allowance for loan losses (5,308)  (5,308)  (5,306)  (5,154)  (5,183) 
  Total loans, net 1,053,468   1,054,634   1,055,397   1,040,274   1,033,681  
Total assets 1,320,069   1,355,383   1,330,723   1,316,996   1,318,040  
Core deposits 1,004,280   1,022,115   989,116   965,359   947,040  
Noncore deposits 71,397   91,464   125,737   131,889   150,497  
  Total deposits 1,075,677   1,113,579   1,114,853   1,097,248   1,097,537  
Total borrowings 64,551   70,079   46,232   53,678   60,441  
Total shareholders' equity 161,919   160,165   157,840   154,746   152,069  
Total tangible equity 137,302   135,379   133,236   129,973   124,325  
Total shares outstanding 10,748,712   10,740,712   10,740,712   10,740,712   10,712,745  
Weighted average shares outstanding 10,748,712   10,740,712   10,740,712   10,720,127   10,712,745  
           
AVERAGE BALANCES (Dollars in thousands)         
           
Assets$ 1,347,916  $1,354,220  $1,326,827  $1,320,080  $1,320,996  
Earning assets 1,205,241   1,204,782   1,179,584   1,180,989   1,179,934  
Loans 1,081,294   1,065,337   1,051,998   1,046,740   1,043,409  
Noninterest bearing deposits 283,259   284,354   260,441   235,247   260,846  
Deposits 1,080,359   1,124,433   1,103,413   1,099,644   1,087,174  
Equity 161,588   159,453   156,491   153,689   149,241  
           
INCOME STATEMENT (Dollars in thousands)         
           
Net interest income$ 13,350  $13,324  $13,997  $13,236  $13,795  
Provision for loan losses 35   50   200   100   300  
  Net interest income after provision 13,315   13,274   13,797   13,136   13,495  
Total noninterest income 1,848   1,878   1,110   1,117   1,443  
Total noninterest expense 10,813   10,444   10,263   10,244   10,678  
Income before taxes 4,350   4,708   4,644   4,009   4,260  
Provision for income taxes 1,054   989   975   842   895  
Net income available to common shareholders$ 3,296  $3,719  $3,669  $3,167  $3,365  
Income pre-tax, pre-provision$ 4,385  $4,758  $4,844  $4,109  $4,560  
           
PER SHARE DATA          
           
Earnings per common share$ 0.31  $0.35  $0.34  $0.30  $0.31  
Book value per common share 15.06   14.91   14.70   14.41   14.20  
Tangible book value per share 12.77   12.60   12.40   12.10   11.61  
Market value, closing price 17.56   15.46   15.80   15.74   13.65  
Dividends per share 0.140   0.140   0.120   0.120   0.120  
           
ASSET QUALITY RATIOS          
           
Nonperforming loans/total loans 0.49 % 0.46 % 0.44 % 0.53 % 0.49 %
Nonperforming assets/total assets 0.56   0.55   0.51   0.57   0.62  
Allowance for loan losses/total loans 0.50   0.50   0.50   0.49   0.50  
Allowance for loan losses/nonperforming loans 102.41   109.33   113.55   92.23   102.09  
Texas ratio 4.41   5.31   4.91   5.59   6.33  
           
PROFITABILITY RATIOS          
           
Return on average assets 0.97 % 1.09 % 1.11 % 0.97 % 1.01 %
Return on average equity 8.09   9.25   9.40   8.36   8.95  
Net interest margin 4.39   4.39   4.76   4.55   4.64  
Average loans/average deposits 100.09   94.74   95.34   95.10   95.97  
           
CAPITAL ADEQUACY RATIOS          
           
Tier 1 leverage ratio 10.09 % 9.81 % 9.74 % 9.54 % 9.24 %
Tier 1 capital to risk weighted assets 12.71   12.39   12.20   12.28   11.95  
Total capital to risk weighted assets 13.22   12.90   12.72   12.79   12.47  
Average equity/average assets (for the quarter) 11.99   11.77   11.80   11.64   11.30  
Tangible equity/tangible assets (at quarter end)   10.17   10.20   10.06   9.64  
           

 

Contact: Jesse A. Deering, EVP & Chief Financial Officer (248) 290-5906 /[email protected]
Website: www.bankmbank.com 

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Source: Mackinac Financial Corporation