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MutualFirst Financial Announces Record Earnings for 2019

Company Release - 1/31/2020 2:00 PM ET

MUNCIE, Ind., Jan. 31, 2020 /PRNewswire/ -- MutualFirst Financial, Inc. (NASDAQ: MFSF), the holding company of MutualBank (the "Bank"), announced today record net income available to common shareholders for the fourth quarter ended December 31, 2019 of $6.6 million, or $0.77 diluted earnings per common share.  This compared to net income available to common shareholders for the same period in 2018 of $5.3 million, or $0.61 diluted earnings per common share. Net income for the fourth quarter ended December 31, 2019 represents an annualized return on average assets of 1.28% and annualized return on average tangible common equity of 13.36% compared to 1.04% and 12.56%, respectively, for the same period of last year. 

Record net income available to common shareholders for the year ended 2019 was $23.8 million, or $2.74 diluted earnings per common share, compared to net income available to common shareholders of $18.9 million, or $2.21 diluted earnings per common share for the year ended 2018.  Net income for the year ended 2019 represents a return on average assets of 1.15% and return on average tangible common equity of 12.60% compared to 0.97% and 11.66%, respectively, for the same period of last year.

On a Form 8-K filed on October 29, 2019, MutualFirst announced it had entered into an Agreement and Plan of Merger (the "Merger Agreement") with Northwest Bancshares, Inc. ("Northwest Bancshares"). Pursuant to the Merger Agreement at the closing of the merger, MutualFirst will merge with and into Northwest Bancshares, with Northwest Bancshares as the surviving entity. Immediately thereafter, MutualBank will merge with and into Northwest Bank, the wholly owned subsidiary of Northwest Bancshares, with Northwest Bank as the surviving entity.

Under the terms of the Merger Agreement, each share of common stock of MutualFirst will be converted into the right to receive 2.4 shares of Northwest Bancshares's common stock, for total consideration valued at approximately $346 million at announcement.

The Merger Agreement has been approved by the Boards of Directors of Northwest Bancshares and MutualFirst. Completion of the transaction is subject to customary closing conditions, including the receipt of required regulatory approvals and the approval of stockholders of MutualFirst. The parties anticipate completing the Merger during the second quarter 2020.

Adjusted net income available to common shareholders for the fourth quarter ended December 31, 2019, without one-time merger related expenses of $1.1 million pre-tax and $1.0 million after tax, was $7.6 million, or $0.88 diluted earnings per common share.  Adjusted net income represents an annualized return on average assets of 1.48% and return on average tangible common equity of 15.38%.  Adjusted net income available to common shareholders for the year ended 2019, without the one-time merger related expenses, was $24.8 million, or $2.85 diluted earnings per common share.  Adjusted net income represents a return on average assets of 1.20% and return on average tangible common equity of 13.13%.

"We are pleased with our record performance in 2019," said David W. Heeter, CEO, "We also are very excited about joining the Northwest team. Northwest has demonstrated a similar commitment to its clients, employees and the communities it serves, shares our core values and has an outstanding record of enhancing shareholder value."

Balance Sheet

Assets increased $14.5 million as of December 31, 2019 compared to December 31, 2018 primarily due to increases in mortgage loans held for sale and investment securities.  Mortgage loans held for sale increased $9.4 million compared to December 31, 2018 due to strong mortgage production as originations increased in 2019 compared to 2018.   Investment securities increased $14.7 million from December 31, 2018 to December 31, 2019 primarily due to a decline in market interest rates, which increased the market value of the securities.  The gross loan portfolio decreased by $5.7 million from December 31, 2018 to December 31, 2019 due to a decrease in residential mortgage loans of $47.6 million primarily as a result of a sale of $27 million of mortgages in the third quarter of 2019.  This decrease was mainly offset by increases in commercial loans by $31.3 million, or 4.5%, and non-residential consumer loans by $10.6 million, or 4.0%. The loan mix is 48.3% commercial loans, 33.0% residential loans and 18.7% non-residential consumer loans as of December 31, 2019 compared to 46.0%, 36.2% and 17.8%, respectively, as of December 31, 2018.

Deposits increased by $34.3 million in 2019 due to an increase of $20.0 million in core deposits and $14.2 million in certificates of deposit.  As of December 31, 2019, core deposits totaled $1.1 billion, or 67.6% of total deposits and certificates of deposit totaled $503 million, or 32.4% of total deposits compared to 67.8% and 32.2%, respectively, on December 31, 2018. 

Allowance for loan losses remained constant at $13.3 million as of December 31, 2019 compared to December 31, 2018.  The allowance for loan losses to non-performing loans as of December 31, 2019 was 185% compared to 146% as of December 31, 2018.  The allowance for loan losses to total loans as of December 31, 2019 remained the same as December 31, 2018 at 0.89%.  Non-performing loans to total loans at December 31, 2019 were 0.48% compared to 0.61% at December 31, 2018.  Non-performing assets to total assets were 0.45% at December 31, 2019 compared to 0.54% at December 31, 2018.

Stockholders' equity was $226.8 million at December 31, 2019, an increase of $24.4 million from December 31, 2018. The increase was primarily due to net income available to common shareholders of $23.8 million during the year ended December 31, 2019 and an increase in accumulated other comprehensive income of $10.8 million.  These increases were partially offset by common stock dividends of $6.9 million and stock repurchases of 136,471 shares at a cost of $4.3 million in 2019.  The Company's tangible book value per common share as of December 31, 2019 was $23.43 compared to $20.51 as of December 31, 2018 and the tangible common equity ratio increased to 9.89% as of December 31, 2019 compared to 8.72% as of December 31, 2018.  MFSF's and the Bank's risk-based capital ratios remained in excess of "well-capitalized" levels as defined by all regulatory standards as of December 31, 2019.

Income Statement

Net interest income before the provision for loan losses decreased $528,000 for the quarter ended December 31, 2019 compared to the same period in 2018.  The decrease in net interest income was primarily a result of a decrease of thirteen basis points in net interest margin from 3.47% in the fourth quarter of 2018 compared to 3.34% in the fourth quarter of 2019.  Net interest margin decreased primarily due to a larger decrease in the yield on interest-earnings assets of sixteen basis points compared to a decrease of two basis points on cost of interest-bearing liabilities. This decrease was partially offset by an increase of $15.4 million in average interest-earning assets, due primarily to organic loan growth.  Net interest margin was also aided in the quarter by approximately three basis points of purchase accounting adjustments in fourth quarter of 2019 compared to nine basis points in the fourth quarter of 2018.   On a linked-quarter basis, net interest income decreased by $279,000 primarily due to a decrease in net interest margin of four basis points and a decline in average earning assets of $9.6 million.

Net interest income before the provision for loan losses increased $1.2 million for the year ended 2019 compared to 2018.  The increase in net interest income was primarily due to an increase of $101.5 million in average interest-earning assets. This increase was partially offset by a decrease of twelve basis points in net interest margin from 3.47% for the year ended 2018 compared to 3.35% in 2019.  Net interest margin decreased primarily due to an increase in the cost of interest-bearing liabilities of twenty-two basis points compared to an increase in yield on interest-earning assets of six basis points.  Net interest margin was aided by purchase accounting adjustments of eight basis points for the year ended 2018 compared to four basis points for 2019.

Provision for loan losses in the fourth quarter of 2019 was $575,000 compared to $600,000 during last year's comparable period.  The decrease was due to management's ongoing evaluation of the adequacy of the allowance for loan losses.  Net charge-offs in the fourth quarter of 2019 were $679,000, or 0.18% of average total loans on an annualized basis, compared to $328,000, or 0.09% of average total loans on an annualized basis in the fourth quarter of 2018.   On a linked-quarter basis, provision for loan losses increased $150,000.

The provision for loan losses in 2019 was $2.0 million compared to $2.1 million in 2018.  Net charge-offs for the year ended December 31, 2019 equaled $1.9 million, or 0.13% of loans, compared to $1.2 million, or 0.09% in 2018.

Non-interest income for the fourth quarter of 2019 was $8.3 million, an increase of $3.0 million compared to the fourth quarter of 2018.  This increase in non-interest income included a $1.6 million increase in other income, primarily related to the sale of Visa B shares and a death benefit received in the fourth quarter of 2019, along with an increase of $820,000 in net gain on sale of mortgage loans due to a $37.1 million, or 101%, increase in mortgage loans sold in the fourth quarter of 2019 compared to the same period in 2018. Non-interest income also increased by $542,000 in service fee income on deposit accounts due to Visa incentive payments along with changes made in the structure of our deposit accounts. On a linked-quarter basis, non-interest income increased $2.4 million primarily due to the reasons mentioned above.

Non-interest income for the year ended 2019 was $24.9 million, an increase of $5.3 million compared to the year ended 2018.  Net gain on sale of mortgage loans increased $2.7 million, other income increased by $1.4 million and service fee income increased $1.0 million for the reasons described above.

Non-interest expense increased $2.5 million when comparing the fourth quarter of 2019 with the same period in 2018.  Non-interest expense increased due to an increase of $1.5 million in salaries and benefits due to increased commission expense for mortgage originators, higher health insurance expense and employee benefits accelerated due to the death of an executive.  Non-interest expense was also higher due to $1.1 million of merger-related expenses, primarily in professional fees and other expenses.   These increases were partially offset by a reduction of $207,000 in FDIC insurance premiums due to Small Bank Assessment Credits received as a result of the FDIC's Reserve Ratio exceeding 1.38%.  On a linked-quarter basis, non-interest expense increased $3.0 million for the same reasons as stated above.

Non-interest expense increased $2.4 million when comparing the year ended 2019 with the same period in 2018.  Non-interest expense was impacted by general expense increases due to timing of the Universal Bancorp acquisition in 2018 along with items mentioned above.

The effective tax rate for the fourth quarter of 2019 was (6.9) % compared to 14.3% in the same quarter of 2018. The primary reason for the decline in the effective tax rate in the fourth quarter was the exercise of non-qualified stock options.  The effective tax rate for the year ended 2019 was 9.0% compared to 13.6% for 2018.

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 National 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)





December 31,

September 30,

December 31,




Balance Sheet (Unaudited):

2019

2019

2018





(000)

(000)

(000)




Assets







Cash and cash equivalents

$            32,323

$         31,315

$        33,414




Interest-bearing time deposits

3,496

4,023

4,239




Investment securities - AFS

385,622

382,976

370,875




Loans held for sale

13,397

19,643

3,987




Loans, gross

1,490,232

1,497,022

1,495,943




Allowance for loan losses

(13,307)

(13,411)

(13,281)




Net loans

1,476,925

1,483,611

1,482,662




Premises and equipment, net

24,505

24,518

25,641




FHLB of Indianapolis stock

13,115

13,115

13,034




Deferred tax asset, net

5,146

3,344

7,744




Cash value of life insurance

60,740

61,099

60,160




Other real estate owned and repossessed assets

1,995

1,952

2,013




Goodwill

22,310

22,310

22,310




Core deposit and other intangibles

2,790

2,969

3,569




Other assets

21,412

22,675

19,665




Total assets

$       2,063,776

$     2,073,550

$    2,049,313











Liabilities and Stockholders' Equity







Deposits

$       1,553,478

$     1,573,088

$    1,519,225




FHLB advances

245,879

239,661

292,497




Other borrowings

17,573

17,653

17,988




Other liabilities

20,034

21,170

17,240




Stockholders' equity

226,812

221,978

202,363




Total liabilities and stockholders' equity

$       2,063,776

$     2,073,550

$    2,049,313


























Three Months

Three Months

Three Months


Twelve Months

Twelve Months


Ended

Ended

Ended


Ended

Ended


December 31,

September 30,

December 31,


December 31,

December 31,

Income Statement (Unaudited):

2019

2019

2018


2019

2018


(000)

(000)

(000)


(000)

(000)








Total interest and dividend income

$            20,892

$         21,617

$        21,489


$         85,329

$        79,694

Total interest expense

4,926

5,372

4,995


21,032

16,591








   Net interest income

15,966

16,245

16,494


64,297

63,103

Provision for loan losses

575

425

600


1,950

2,120

Net interest income after provision 







  for loan losses

15,391

15,820

15,894


62,347

60,983








  Non-interest income







Service fee income

3,019

2,081

2,390


8,949

7,937

Net realized gain on sales of AFS securities

39

109

138


1,014

804

Commissions

1,162

1,147

1,114


4,787

4,865

Net gain on sale of loans

1,722

1,778

902


5,871

3,126

Net servicing fees

149

158

158


595

591

Increase in cash value of life insurance

300

312

315


1,239

1,239

Net gain (loss) on sale of other real estate and repossessed assets

11

28

(9)


(19)

(43)

Other income

1,881

236

288


2,485

1,055

Total non-interest income

8,283

5,849

5,296


24,921

19,574








  Non-interest expense







Salaries and employee benefits

10,386

8,826

8,895


36,313

32,964

Net occupancy expenses

1,010

1,005

986


4,055

3,965

Equipment expenses

636

574

625


2,441

2,514

Data processing fees

643

680

686


2,613

2,624

Advertising and promotion

353

296

331


1,323

1,606

ATM and debit card expense

584

590

582


2,334

2,290

Deposit insurance

-

(3)

207


413

898

Professional fees

1,342

484

463


2,706

2,177

Software subscriptions and maintenance

706

723

732


3,014

2,719

Other real estate and repossessed assets

86

47

49


256

189

Core deposit intangible amortization

178

187

249


779

1,103

Other expenses

1,548

1,074

1,214


4,911

5,684

Total non-interest expense

17,472

14,483

15,019


61,158

58,733








Income before income taxes

6,202

7,186

6,171


26,110

21,824

Income tax provision (benefit)

(426)

1,052

881


2,359

2,960

Net income available to common shareholders

$              6,628

$           6,134

$          5,290


$         23,751

$        18,864








Pre-tax pre-provision earnings (1)

$              6,777

$           7,611

$          6,771


$         28,060

$        23,944








Average Balances,  Net Interest Income, Yield Earned and Rates Paid









Three



Three




months ended



months ended




12/31/2019



12/31/2018



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

$            22,866

$               56

0.98%

$22,735

$63

1.11%

 Mortgage-backed securities:







Available-for-sale

213,821

1,333

2.49

216,947

1,511

2.79

 Investment securities:







Available-for-sale

159,531

1,290

3.23

154,735

1,261

3.26

 Loans receivable

1,505,000

18,057

4.80

1,491,709

18,509

4.96

Stock in FHLB of Indianapolis

13,115

156

4.76

12,823

145

4.52

Total interest-earning assets (2)

1,914,333

20,892

4.37

1,898,949

21,489

4.53

Non-interest earning assets, net of allowance 







  for loan losses and unrealized gain/loss

152,354



129,974



     Total assets

$       2,066,687



$2,028,923

















Interest-Bearing Liabilities:







 Demand and NOW accounts

$          410,289

621

0.61

$393,365

779

0.79

 Savings deposits

178,983

5

0.01

184,447

5

0.01

 Money market accounts

216,414

510

0.94

183,947

303

0.66

 Certificate accounts

502,481

2,549

2.03

488,484

2,231

1.83

 Total deposits

1,308,167

3,685

1.13

1,250,243

3,318

1.06

 Borrowings

231,989

1,241

2.14

281,026

1,677

2.39

  Total interest-bearing liabilities

1,540,156

4,926

1.28

1,531,269

4,995

1.30

Non-interest bearing deposit accounts

281,816



284,837



Other liabilities

21,118



18,196



  Total liabilities

1,843,090



1,834,302



Stockholders' equity

223,597



194,621



    Total liabilities and stockholders' equity

$       2,066,687



$2,028,923










Net interest earning assets

$          374,177



$367,680










Net interest income


$         15,966



$16,494









Net interest rate spread (4)



3.09%



3.22%








Net yield on average interest-earning assets (4)



3.34%



3.47%








Net yield on average interest-earning assets, tax equivalent (3)(4)



3.41%



3.55%








Average interest-earning assets to







  average interest-bearing liabilities



124.29%



124.01%

















Twelve



Twelve




months ended



months ended




12/31/2019



12/31/2018



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

$            23,947

$              291

1.22%

$        22,927

$              250

1.09%

 Mortgage-backed securities:







Available-for-sale

216,374

5,703

2.64

203,891

5,513

2.70

 Investment securities:







Available-for-sale

154,838

5,020

3.24

149,535

4,850

3.24

 Loans receivable

1,509,658

73,623

4.88

1,427,436

68,475

4.80

Stock in FHLB of Indianapolis

13,105

692

5.28

12,557

606

4.83

Total interest-earning assets (2)

1,917,922

85,329

4.45

1,816,346

79,694

4.39

Non-interest earning assets, net of allowance 







  for loan losses and unrealized gain/loss

147,692



127,142



     Total assets

$       2,065,614



$    1,943,488

















Interest-Bearing Liabilities:







 Demand and NOW accounts

$          403,399

3,072

0.76

$      385,681

2,462

0.64

 Savings deposits

182,589

19

0.01

180,065

20

0.01

 Money market accounts

197,296

1,777

0.90

191,433

1,027

0.54

 Certificate accounts

507,589

10,251

2.02

455,431

7,347

1.61

 Total deposits

1,290,873

15,119

1.17

1,212,610

10,856

0.90

 Borrowings

261,460

5,913

2.26

260,994

5,735

2.20

  Total interest-bearing liabilities

1,552,333

21,032

1.35

1,473,604

16,591

1.13

Non-interest bearing deposit accounts

278,792



267,812



Other liabilities

20,417



17,315



  Total liabilities

1,851,542



1,758,731



Stockholders' equity

214,072



184,757



    Total liabilities and stockholders' equity

$       2,065,614



$    1,943,488










Net interest earning assets

$          365,589



$      342,742










Net interest income


$         64,297



$         63,103









Net interest rate spread (4)



3.09%



3.26%








Net yield on average interest-earning assets (4)



3.35%



3.47%








Net yield on average interest-earning assets, tax equivalent (3)(4)



3.43%



3.55%








Average interest-earning assets to







  average interest-bearing liabilities



123.55%



123.26%
















Three Months

Three Months

Three Months


Twelve Months

Twelve Months


Ended

Ended

Ended


Ended

Ended


December 31,

September 30,

December 31,


December 31,

December 31,

  Selected Financial Ratios and Other Financial Data (Unaudited):

2019

2019

2018


2019

2018






















Share and per share data:







 Average common shares outstanding:







   Basic

8,563,012

8,516,038

8,590,729


8,575,355

8,394,195

   Diluted

8,636,467

8,629,030

8,732,290


8,682,108

8,543,544

 Per common share:







   Basic earnings

$               0.77

$             0.72

$            0.62


$             2.77

$           2.25

   Diluted earnings 

$               0.77

$             0.71

$            0.61


$             2.74

$           2.21

   Dividends

$               0.20

$             0.20

$            0.20


$             0.80

$           0.74








Dividend payout ratio

25.97%

28.17%

32.79%


29.20%

33.48%








Performance Ratios:







   Return on average assets (ratio of net







      income to average total assets)(4)

1.28%

1.18%

1.04%


1.15%

0.97%

   Return on average tangible common equity (ratio of net 







      income to average tangible common equity)(4)

13.36%

12.65%

12.56%


12.60%

11.66%

   Interest rate spread information:







    Average during the period(4)

3.09%

3.11%

3.22%


3.09%

3.26%








    Net interest margin(4)(5)

3.34%

3.38%

3.47%


3.35%

3.47%








Efficiency Ratio

72.05%

65.55%

68.93%


68.55%

71.04%








    Ratio of average interest-earning







     assets to average interest-bearing







     liabilities

124.29%

124.26%

124.01%


123.55%

123.26%








Allowance for loan losses:







       Balance beginning of period

$            13,411

$         13,435

$        13,009


$         13,281

$        12,387

        Net charge-offs (recoveries):







Real Estate:







Commercial

25

56

40


165

93

Commercial construction and development

-

-

0


-

0

Consumer closed end first mortgage

126

41

23


237

156

Consumer open end and junior liens

-

-

0


-

36

Total real estate loans

151

97

63


402

285

Other loans:







Auto

71

37

5


237

41

Boat/RV

395

232

212


1,039

593

Other

62

74

48


237

208

Commercial and industrial

-

9

0


9

99

Total other

528

352

265


1,522

941








Net charge-offs (recoveries)

679

449

328


1,924

1,226

Provision for loan losses

575

425

600


1,950

2,120

Balance end of period

$            13,307

$         13,411

$        13,281


$         13,307

$        13,281








    Net loan charge-offs to average loans (4)

0.18%

0.12%

0.09%


0.13%

0.09%























December 31,

September 30,

December 31,





2019

2019

2018











Total shares outstanding

8,607,953

8,498,491

8,603,462




Tangible book value per common share

$              23.43

$           23.15

$          20.51




Tangible common equity to tangible assets

9.89%

9.60%

8.72%











 Nonperforming assets (000's)







Non-accrual loans







Real Estate:







Commercial

$                756

$              881

$          4,782




Commercial construction and development

631

-

62




Consumer closed end first mortgage

3,682

3,574

2,777




Consumer open end and junior liens

352

184

273




Total real estate loans

5,421

4,639

7,894




Other loans:







Auto

256

185

88




Boat/RV

944

531

470




Other

51

16

46




Commercial and industrial

368

323

91




Total other

1,619

1,055

695




Total non-accrual loans

7,040

5,694

8,589




Accruing loans past due 90 days or more

156

148

517




Total nonperforming loans

7,196

5,842

9,106




    Real estate owned

1,217

1,283

1,223




    Other repossessed assets

778

669

790




 Total nonperforming assets

$              9,191

$           7,794

$        11,119











Performing restructured loans (6)

$              1,371

$           1,401

$          2,571











Asset Quality Ratios:







Non-performing assets to total assets 

0.45%

0.38%

0.54%




Non-performing loans to total loans

0.48%

0.39%

0.61%




Allowance for loan losses to non-performing loans

185%

230%

146%




Allowance for loan losses to loans receivable

0.89%

0.90%

0.89%











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.









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


Twelve Months

Twelve Months


Ended

Ended

Ended


Ended

Ended


December 31,

September 30,

December 31,


December 31,

December 31,

Non-GAAP Measurements 

2019

2019

2018


2019

2018








Total stockholders' equity (GAAP)

$          226,812

$       221,978

$      202,363


$       226,812

$      202,363

Less: Intangible assets

25,100

25,279

25,879


25,100

25,879

Tangible common equity (non-GAAP)

$          201,712

$       196,699

$      176,484


$       201,712

$      176,484








Total assets (GAAP)

$       2,063,776

$     2,073,550

$    2,049,313


$     2,063,776

$   2,049,313

Less: Intangible assets

25,100

25,279

25,879


25,100

25,879

Tangible assets (non-GAAP)

$       2,038,676

$     2,048,271

$    2,023,434


$     2,038,676

$   2,023,434








Tangible common equity to tangible assets (non-GAAP)

9.89%

9.60%

8.72%


9.89%

8.72%








Book value per common share (GAAP)

$              26.35

$           26.12

$          23.52


$           26.35

$          23.52

Less: Effect of intangible assets

2.92

2.97

3.01


2.92

3.01

Tangible book value per common share

$              23.43

$           23.15

$          20.51


$           23.43

$          20.51








Return on average stockholders' equity (GAAP)

11.86%

11.19%

10.87%


11.09%

10.21%

Add: Effect of intangible assets

1.50%

1.46%

1.69%


1.51%

1.45%

Return on average tangible common equity (non-GAAP)

13.36%

12.65%

12.56%


12.60%

11.66%








Total tax free interest income (GAAP)







Loans receivable

$                  98

$               98

$             106


$              399

$            420

Investment securities

1,256

1,236

1,226


4,884

4,494

Total tax free interest income

$              1,354

$           1,334

$          1,332


$           5,283

$          4,914

Total tax free interest income, gross (at 21%)

$              1,714

$           1,689

$          1,686


$           6,687

$          6,220








Net interest margin, tax equivalent (non-GAAP)







Net interest income (GAAP)

$            15,966

$         16,245

$        16,494


$         64,297

$        63,103

Add: Tax effect tax free interest income (3)

360

355

354


1,404

1,306

Net interest income (non-GAAP)

16,326

16,600

16,848


65,701

64,409

Divided by: Average interest-earning assets

1,914,333

1,923,938

1,898,949


1,917,922

1,816,346

Net interest margin, tax equivalent

3.41%

3.45%

3.55%


3.43%

3.55%








One-time merger related expenses







Non-tax deductible

$                585

$                -

$               -


$              585

$            220

Tax deductible

527

-

79


527

2,158

Total one-time merger related expenses

$              1,112

$                -

$              79


$           1,112

$          2,378

Subtract tax benefit

111

-

17


111

453

Net one-time merger related expenses

$              1,001

$                -

$              62


$           1,001

$          1,925

Net income (GAAP)

6,628

-

5,290


23,751

18,864

Net income excluding one-time merger expenses (non-GAAP)

$              7,629

$                -

$          5,352


$         24,752

$        20,789








Adjusted diluted earnings per share







Net income excluding one-time merger expenses (non-GAAP)

$              7,629

$                -

$          5,352


$         24,752

$        20,789

Average diluted shares

8,636,467

-

8,732,290


8,682,108

8,543,544

Adjusted diluted earnings per share (non-GAAP)

$               0.88

$                -

$            0.61


$             2.85

$           2.43








Adjusted return on assets







Net income excluding one-time merger expenses (non-GAAP)

$              7,629

$                -

$          5,352


$         24,752

$        20,789

Average assets

2,066,687

-

2,028,923


2,065,614

1,943,488

Adjusted return on average assets (non-GAAP)

1.48%

-

1.06%


1.20%

1.07%








Adjusted return on tangible common equity







Net income excluding one-time merger expenses (non-GAAP)

$              7,629

$                -

$          5,352


$         24,752

$        20,789

Average tangible common equity 

198,401

-

168,443


188,563

161,788

Adjusted return on average tangible common equity (non-GAAP)

15.38%

-

12.71%


13.13%

12.85%








Ratio Summary:







Return on average equity

11.86%

11.19%

10.87%


11.09%

10.21%

Return on average tangible common equity

13.36%

12.65%

12.56%


12.60%

11.66%

Return on average assets

1.28%

1.18%

1.04%


1.15%

0.97%

Tangible common equity to tangible assets

9.89%

9.60%

8.72%


9.89%

8.72%

Net interest margin, tax equivalent

3.41%

3.45%

3.55%


3.43%

3.55%








(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 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.


 

 

 

Cision View original content:http://www.prnewswire.com/news-releases/mutualfirst-financial-announces-record-earnings-for-2019-300996983.html

SOURCE MutualFirst Financial, Inc.