MANISTIQUE, Mich., April 26, 2017 (GLOBE NEWSWIRE) -- Mackinac Financial Corporation (Nasdaq:MFNC) (the “Corporation”), the bank holding company for mBank, today announced first quarter 2017 income of $1.726 million, or $.28 per share, compared to net income of $1.132 million, or $.18 per share, for the first quarter of 2016. As expected, the 2017 first quarter results were positively impacted by the operating scale garnered by the two 2016 acquisitions, as well as continued organic growth. All transaction-related expenses from the acquisitions occurred in 2016 and no legacy costs are expected this year. Total assets of the Corporation at March 31, 2017 were $976.635 million compared to $732.932 million at March 31, 2016.
Shareholders’ equity at March 31, 2017 totaled $80.009 million, compared to $77.395 million on March 31, 2016. The tangible book value per share equated to $11.47 on March 31, 2017 compared to $11.64 per share a year ago. Weighted average shares outstanding totaled 6,270,034 shares in the 2017 first quarter compared to 6,214,083 for the same period in 2016.
mBank, the Corporation’s primary asset, recorded net income of $2.061 million in the first quarter of 2017, compared to $1.486 million for the first quarter of 2016, equating to a 39% increase.
Some highlights for the first quarter include:
- Quarterly dividend on common stock of $.12 per share compared to $.10 per share one year ago.
- Total interest income of $10.596 million for 2017 compared to $8.310 million for the same period in 2016.
- Net interest margin has remained strong at 4.19%.
- Active secondary mortgage market activity with non-interest income stemming from that business line increasing from $.267 million to $.298 million year over year for the period.
- Total loan production of $52.600 million in the first quarter of 2017.
Loans and Non-performing Assets
Total balance sheet loans at March 31, 2017 were $786.546 million, an increase from March 31, 2016 balances of $618.625 million. Total loans under management now reside at $1.058 billion which includes $271.179 million of service retained loans. New loan production was solid in the 2017 first quarter at $52.6 million, with the Upper Peninsula generating $26.7 million of this total and increasing contributions from the acquired Wisconsin markets and our ABL business line Mackinac Commercial Credit. Commercial originations accounted for $29.1 million, with retail, predominantly mortgage, equating to $23.5 million. Commenting on new loan production and overall lending activities, Kelly W. George, President and CEO of mBank stated, “We are pleased with our continued momentum and consistent loan production for the quarter, especially given some recent interest rate movement and the competitive lending landscape it fosters for good quality loans. We expect the strong production trend to continue as we move into our more seasonal lending origination months, particularly with our fully integrated and branded Wisconsin markets gaining continued traction. The performance of our asset based lending division through the first three months of the year has been strong, augmenting our well-rounded loan product mix. Our loan product mix should serve us well in this rising rate environment.”
Nonperforming loans totaled $3.730 million, .47% of total loans at March 31, 2017 compared to $1.717 million, or .28%, of total loans at March 31, 2016 and down from the $4.124 million from December 31, 2016. Total loan delinquencies greater than 30 days resided at a nominal .79%, or $6.193 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 for the quarter. We remain comfortable with our diligence on the acquired loan portfolios and corresponding purchase accounting marks and would expect our metrics to continue to improve in the normal course of business in 2017.”
Margin Analysis
Net interest income in the first quarter of 2017 resided at $9.166 million, or 4.19%, compared to $7.288 million, or 4.33%, in the first quarter of 2016. Mr. George stated, “We have been successful in maintaining our strong net interest margin through the historically low interest rate cycle. Interest rates have now begun to slowly increase, which will lead to increased net interest dollars given the asset structure of our balance sheet. We will continue to use targeted funding strategies and disciplined loan pricing in efforts to mitigate longer term interest rate risk while seeking opportunities that utilize the shape of the yield curve as we replace shorter term liabilities. We 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 $821.820 million at March 31, 2017 increased by $228.842 million from deposits of $592.978 million on March 31, 2016 and were slightly down from year end deposits of $823.512 million. Mr. George, commenting on core deposits and overall liquidity, 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 our pricing levels within the different segments of our deposit products to best manage our net interest margin and increase profitability. We also continue to actively work to grow our core deposit base but we commonly experience some seasonality of deposit levels this time of year within our core client base given their locations and industry mix. This seasonality is factored into our funding plans.”
Noninterest Income/Expense
Noninterest income, at $.776 million in the first quarter of 2017, increased $.149 million from the first quarter 2016 level of $.627 million. Year over year non-interest income levels improved partially due to an increase in SBA\USDA sales which totaled $.060 million in the 2017 first quarter. Secondary market fees increased $.031 million in the first quarter of 2017 compared to first quarter of 2016. Noninterest expense, at $7.177 million in the first quarter of 2017, increased $.979 million from the first quarter of 2016. The expense increase from the first quarter of 2016 was largely attributable to the increased employee base from the two recent acquisitions and customary operating expenses necessary to ensure our platform infrastructure keeps pace with our growing asset base and the associated regulatory and risk management needs.
Assets and Capital
Total assets of the Corporation at March 31, 2017 were $976.635 million, up $243.703 million from the $732.932 million reported at March 31, 2016. Common shareholders’ equity at March 31, 2017 totaled $80.009 million, or $12.74 per share, compared to $77.395 million, or $12.42 per share on March 31, 2016. The Corporation is “adequately-capitalized” and the Bank is “well-capitalized” with Tier 1 Capital of 6.76% and 9.14%, respectively.
Paul D. Tobias, Chairman and Chief Executive Officer of Mackinac concluded, “We remain very pleased with the positive impact from our 2016 acquisitions as well as the prospect of rate increases for 2017. We will continue to seek and evaluate potential acquisition partners opportunistically while organically growing assets and earnings. We are well positioned for continued value creation for our shareholders while 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 $975 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 23 branch locations; twelve in the Upper Peninsula, three in the Northern Lower Peninsula, one in Oakland County, Michigan, and seven in Northern Wisconsin. The Company’s banking services include commercial lending and treasury management products and services geared toward small to mid-sized businesses, as well as a full array of personal and business deposit products and consumer loans.
Forward-Looking Statements
This release contains certain forward-looking statements. Words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “should,” “will,” “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.
| 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) | 2017 | 2016 | 2016 | |||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||
| Selected Financial Condition Data (at end of period): | ||||||||||||||
| Assets | $ | 976,635 | $ | 983,520 | $ | 732,932 | ||||||||
| Loans | 786,546 | 781,857 | 618,625 | |||||||||||
| Investment securities | 83,882 | 86,273 | 54,021 | |||||||||||
| Deposits | 821,820 | 823,512 | 592,978 | |||||||||||
| Borrowings | 66,279 | 67,579 | 46,454 | |||||||||||
| Shareholders' equity | 80,009 | 78,609 | 77,395 | |||||||||||
| Selected Statements of Income Data: | ||||||||||||||
| Net interest income | $ | 9,166 | $ | 33,098 | $ | 7,288 | ||||||||
| Income before taxes | 2,615 | 6,766 | 1,717 | |||||||||||
| Net income | 1,726 | 4,483 | 1,132 | |||||||||||
| Income per common share - Basic | .28 | .72 | .18 | |||||||||||
| Income per common share - Diluted | .28 | .72 | .18 | |||||||||||
| Weighted average shares outstanding | 6,270,034 | 6,236,067 | 6,214,083 | |||||||||||
| Weighted average shares outstanding- Diluted | 6,271,904 | 6,268,703 | 6,214,083 | |||||||||||
| Selected Financial Ratios and Other Data: | ||||||||||||||
| Performance Ratios: | ||||||||||||||
| Net interest margin | 4.19 | % | 7.19 | % | 4.33 | % | ||||||||
| Return on average assets | .71 | .52 | .62 | |||||||||||
| Return on average equity | 8.83 | 5.73 | 5.89 | |||||||||||
| Average total assets | $ | 980,491 | $ | 865,573 | $ | 737,088 | ||||||||
| Average total shareholders' equity | 79,293 | 78,300 | 77,284 | |||||||||||
| Average loans to average deposits ratio | 94.81 | % | 98.14 | % | 101.87 | % | ||||||||
| Common Share Data at end of period: | ||||||||||||||
| Market price per common share | $ | 13.72 | $ | 13.47 | $ | 10.25 | ||||||||
| Book value per common share | 12.71 | 12.55 | 12.42 | |||||||||||
| Tangible book value per share | 11.47 | 11.29 | 11.64 | |||||||||||
| Dividends paid per share, annualized | .480 | .400 | .400 | |||||||||||
| Common shares outstanding | 6,294,930 | 6,263,371 | 6,231,246 | |||||||||||
| Other Data at end of period: | ||||||||||||||
| Allowance for loan losses | $ | 5,146 | $ | 5,020 | $ | 4,824 | ||||||||
| Non-performing assets | $ | 8,196 | $ | 8,906 | $ | 4,401 | ||||||||
| Allowance for loan losses to total loans | .66 | % | .64 | % | .78 | % | ||||||||
| Non-performing assets to total assets | .84 | % | .91 | % | .60 | % | ||||||||
| Texas ratio | 10.60 | % | 11.76 | % | 5.61 | % | ||||||||
| Number of: | ||||||||||||||
| Branch locations | 23 | 23 | 17 | |||||||||||
| FTE Employees | 221 | 222 | 178 | |||||||||||
| MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| 2017 | 2015 | 2015 | |||||||||
| (Unaudited) | (Unaudited) | ||||||||||
| ASSETS | |||||||||||
| Cash and due from banks | $ | 41,166 | $ | 44,620 | $ | 18,013 | |||||
| Federal funds sold | 3 | 2,135 | 3 | ||||||||
| Cash and cash equivalents | 41,169 | 46,755 | 18,016 | ||||||||
| Interest-bearing deposits in other financial institutions | 13,448 | 14,047 | 4,989 | ||||||||
| Securities available for sale | 83,882 | 86,273 | 54,021 | ||||||||
| Federal Home Loan Bank stock | 2,719 | 2,911 | 2,169 | ||||||||
| Loans: | |||||||||||
| Commercial | 552,483 | 543,573 | 455,575 | ||||||||
| Mortgage | 215,042 | 218,171 | 147,600 | ||||||||
| Consumer | 19,021 | 20,113 | 15,450 | ||||||||
| Total Loans | 786,546 | 781,857 | 618,625 | ||||||||
| Allowance for loan losses | (5,146 | ) | (5,020 | ) | (4,824 | ) | |||||
| Net loans | 781,400 | 776,837 | 613,801 | ||||||||
| Premises and equipment | 15,970 | 15,891 | 12,491 | ||||||||
| Other real estate held for sale | 4,466 | 4,782 | 2,684 | ||||||||
| Deferred tax asset | 7,651 | 8,760 | 8,523 | ||||||||
| Deposit based intangibles | 2,110 | 2,172 | 1,046 | ||||||||
| Goodwill | 5,694 | 5,694 | 3,805 | ||||||||
| Other assets | 18,126 | 19,398 | 11,387 | ||||||||
| TOTAL ASSETS | $ | 976,635 | $ | 983,520 | $ | 732,932 | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
| LIABILITIES: | |||||||||||
| Deposits: | |||||||||||
| Noninterest bearing deposits | $ | 147,106 | $ | 164,179 | $ | 117,704 | |||||
| NOW, money market, interest checking | 283,314 | 286,622 | 207,068 | ||||||||
| Savings | 61,171 | 58,315 | 31,994 | ||||||||
| CDs<$250,000 | 141,569 | 141,629 | 116,995 | ||||||||
| CDs>$250,000 | 8,802 | 8,489 | 7,910 | ||||||||
| Brokered | 179,858 | 164,278 | 111,307 | ||||||||
| Total deposits | 821,820 | 823,512 | 592,978 | ||||||||
| Federal funds purchased | 3,000 | 6,000 | 10,000 | ||||||||
| Borrowings | 66,279 | 67,579 | 46,454 | ||||||||
| Other liabilities | 5,527 | 7,820 | 6,105 | ||||||||
| Total liabilities | 896,626 | 904,911 | 655,537 | ||||||||
| SHAREHOLDERS' EQUITY: | |||||||||||
| Common stock and additional paid in capital - No par value | |||||||||||
| Authorized - 18,000,000 shares | |||||||||||
| Issued and outstanding - 6,294,930; 6,263,371; and 6,231,246 shares respectively | 61,683 | 61,583 | 61,184 | ||||||||
| Retained earnings | 18,176 | 17,206 | 15,746 | ||||||||
| Accumulated other comprehensive income | |||||||||||
| Unrealized gains (losses) on available for sale securities | 228 | (102 | ) | 514 | |||||||
| Minimum pension liability | (78 | ) | (78 | ) | (49 | ) | |||||
| Total shareholders' equity | 80,009 | 78,609 | 77,395 | ||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 976,635 | $ | 983,520 | $ | 732,932 | |||||
| MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
| Three Months Ended | |||||||||||
| March 31, | |||||||||||
| 2017 | 2016 | ||||||||||
| (Unaudited) | |||||||||||
| INTEREST INCOME: | |||||||||||
| Interest and fees on loans: | |||||||||||
| Taxable | $ | 9,957 | $ | 7,960 | |||||||
| Tax-exempt | 33 | 2 | |||||||||
| Interest on securities: | |||||||||||
| Taxable | 399 | 262 | |||||||||
| Tax-exempt | 79 | 31 | |||||||||
| Other interest income | 128 | 55 | |||||||||
| Total interest income | 10,596 | 8,310 | |||||||||
| INTEREST EXPENSE: | |||||||||||
| Deposits | 959 | 769 | |||||||||
| Borrowings | 471 | 253 | |||||||||
| Total interest expense | 1,430 | 1,022 | |||||||||
| Net interest income | 9,166 | 7,288 | |||||||||
| Provision for loan losses | 150 | - | |||||||||
| Net interest income after provision for loan losses | 9,016 | 7,288 | |||||||||
| OTHER INCOME: | |||||||||||
| Deposit service fees | 272 | 216 | |||||||||
| Income from loans sold on the secondary market | 298 | 267 | |||||||||
| SBA/USDA loan sale gains | 60 | - | |||||||||
| Mortgage servicing (amortization) income | (8 | ) | (54 | ) | |||||||
| Net security gains | - | 97 | |||||||||
| Other | 154 | 101 | |||||||||
| Total other income | 776 | 627 | |||||||||
| OTHER EXPENSE: | |||||||||||
| Salaries and employee benefits | 3,797 | 3,387 | |||||||||
| Occupancy | 785 | 640 | |||||||||
| Furniture and equipment | 481 | 383 | |||||||||
| Data processing | 461 | 345 | |||||||||
| Advertising | 123 | 156 | |||||||||
| Professional service fees | 321 | 241 | |||||||||
| Loan origination expenses and deposit and card related fees | 179 | 127 | |||||||||
| Writedowns and losses on other real estate held for sale | 12 | 16 | |||||||||
| FDIC insurance assessment | 157 | 108 | |||||||||
| Telephone | 157 | 112 | |||||||||
| Transaction related expenses | - | 106 | |||||||||
| Other | 704 | 577 | |||||||||
| Total other expenses | 7,177 | 6,198 | |||||||||
| Income before provision for income taxes | 2,615 | 1,717 | |||||||||
| Provision for income taxes | 889 | 585 | |||||||||
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ | 1,726 | $ | 1,132 | |||||||
| INCOME PER COMMON SHARE: | |||||||||||
| Basic | $ | .28 | $ | .18 | |||||||
| Diluted | $ | .28 | $ | .18 | |||||||
| 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, | ||||||
| 2017 | 2016 | 2016 | ||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||
| Commercial Loans: | ||||||||
| Real estate - operators of nonresidential buildings | $ | 114,650 | $ | 121,861 | $ | 102,427 | ||
| Hospitality and tourism | 69,568 | 68,025 | 46,555 | |||||
| Lessors of residential buildings | 30,118 | 27,590 | 29,194 | |||||
| Gasoline stations and convenience stores | 20,187 | 20,509 | 21,614 | |||||
| Logging | 16,096 | 19,903 | 17,306 | |||||
| Commercial construction | 10,618 | 11,505 | 14,489 | |||||
| Other | 291,246 | 274,180 | 223,990 | |||||
| Total Commercial Loans | 552,483 | 543,573 | 455,575 | |||||
| 1-4 family residential real estate | 202,654 | 205,945 | 135,641 | |||||
| Consumer | 19,021 | 20,113 | 15,450 | |||||
| Consumer construction | 12,388 | 12,226 | 11,959 | |||||
| Total Loans | $ | 786,546 | $ | 781,857 | $ | 618,625 | ||
| Credit Quality (at end of period): | |||||||||
| March 31, | December 31, | March 31, | |||||||
| 2017 | 2016 | 2016 | |||||||
| (Unaudited) | (Unaudited) | (Unaudited) | |||||||
| Nonperforming Assets : | |||||||||
| Nonaccrual loans | $ | 3,691 | $ | 3,959 | $ | 1,523 | |||
| Loans past due 90 days or more | - | - | 44 | ||||||
| Restructured loans | 39 | 165 | 150 | ||||||
| Total nonperforming loans | 3,730 | 4,124 | 1,717 | ||||||
| Other real estate owned | 4,466 | 4,782 | 2,684 | ||||||
| Total nonperforming assets | $ | 8,196 | $ | 8,906 | $ | 4,401 | |||
| Nonperforming loans as a % of loans | .47 | % | .53 | % | .28 | % | |||
| Nonperforming assets as a % of assets | .84 | % | .91 | % | .60 | % | |||
| Reserve for Loan Losses: | |||||||||
| At period end | $ | 5,146 | $ | 5,020 | $ | 4,824 | |||
| As a % of average loans | .65 | % | .64 | % | .78 | % | |||
| As a % of nonperforming loans | 137.96 | % | 121.73 | % | 280.96 | % | |||
| As a % of nonaccrual loans | 139.42 | % | 126.80 | % | 316.74 | % | |||
| Texas Ratio | 10.60 | % | 11.76 | % | 5.61 | % | |||
| Charge-off Information (year to date): | |||||||||
| Average loans | $ | 782,477 | $ | 703,047 | $ | 615,684 | |||
| Net charge-offs (recoveries) | $ | 24 | $ | 584 | $ | 180 | |||
| Charge-offs as a % of average | |||||||||
| loans, annualized | .01 | % | .08 | % | .12 | % | |||
| MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
| QUARTERLY FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
| QUARTER ENDED | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| March 31 | December 31 | September 30 | June 30, | March 31, | ||||||||||||||||
| 2017 | 2016 | 2016 | 2016 | 2016 | ||||||||||||||||
| BALANCE SHEET (Dollars in thousands) | ||||||||||||||||||||
| Total loans | $ | 786,546 | $ | 781,857 | $ | 756,804 | $ | 725,635 | $ | 618,625 | ||||||||||
| Allowance for loan losses | (5,146 | ) | (5,020 | ) | (4,862 | ) | (4,733 | ) | (4,824 | ) | ||||||||||
| Total loans, net | 781,400 | 776,837 | 751,942 | 720,902 | 613,801 | |||||||||||||||
| Total assets | 976,635 | 983,520 | 959,121 | 892,328 | 732,932 | |||||||||||||||
| Core deposits | 633,160 | 650,745 | 660,867 | 579,606 | 473,761 | |||||||||||||||
| Noncore deposits | 188,660 | 172,767 | 146,313 | 158,757 | 119,217 | |||||||||||||||
| Total deposits | 821,820 | 823,512 | 807,180 | 738,363 | 592,978 | |||||||||||||||
| Total borrowings | 66,279 | 67,579 | 67,730 | 70,604 | 56,454 | |||||||||||||||
| Total shareholders' equity | 80,009 | 78,609 | 78,285 | 77,081 | 77,395 | |||||||||||||||
| Total tangible equity | 72,205 | 70,743 | 70,356 | 69,916 | 72,544 | |||||||||||||||
| Total shares outstanding | 6,294,930 | 6,263,371 | 6,263,371 | 6,226,246 | 6,231,246 | |||||||||||||||
| Weighted average shares outstanding | 6,270,034 | 6,263,371 | 6,238,756 | 6,227,730 | 6,214,083 | |||||||||||||||
| AVERAGE BALANCES (Dollars in thousands) | ||||||||||||||||||||
| Assets | $ | 980,491 | $ | 958,781 | $ | 930,353 | $ | 834,674 | $ | 737,088 | ||||||||||
| Loans | 782,477 | 771,279 | 734,702 | 689,462 | 615,684 | |||||||||||||||
| Deposits | 825,309 | 800,508 | 780,265 | 679,183 | 604,363 | |||||||||||||||
| Equity | 79,293 | 78,406 | 78,027 | 79,481 | 77,284 | |||||||||||||||
| INCOME STATEMENT (Dollars in thousands) | ||||||||||||||||||||
| Net interest income | $ | 9,166 | $ | 9,118 | $ | 8,696 | $ | 7,996 | $ | 7,288 | ||||||||||
| Provision for loan losses | 150 | 250 | 200 | 150 | - | |||||||||||||||
| Net interest income after provision | 9,016 | 8,868 | 8,496 | 7,846 | 7,288 | |||||||||||||||
| Total noninterest income | 776 | 1,141 | 1,489 | 896 | 627 | |||||||||||||||
| Total noninterest expense | 7,177 | 7,509 | 7,285 | 8,893 | 6,198 | |||||||||||||||
| Income before taxes | 2,615 | 2,500 | 2,700 | (151 | ) | 1,717 | ||||||||||||||
| Provision for income taxes | 889 | 802 | 922 | (26 | ) | 585 | ||||||||||||||
| Net income available to common shareholders | $ | 1,726 | $ | 1,698 | $ | 1,778 | $ | (125 | ) | $ | 1,132 | |||||||||
| Income pre-tax, pre-provision | $ | 2,765 | $ | 2,750 | $ | 2,900 | $ | (1 | ) | $ | 1,717 | |||||||||
| PER SHARE DATA | ||||||||||||||||||||
| Earnings | $ | .28 | $ | .27 | $ | .29 | $ | (.02 | ) | $ | .18 | |||||||||
| Book value per common share | 12.71 | 12.55 | 12.50 | 12.38 | 12.42 | |||||||||||||||
| Tangible book value per share | 11.47 | 11.29 | 11.23 | 11.23 | 11.64 | |||||||||||||||
| Market value, closing price | 13.72 | 13.47 | 11.49 | 11.01 | 10.25 | |||||||||||||||
| Dividends per share | .120 | .100 | .100 | .100 | .100 | |||||||||||||||
| ASSET QUALITY RATIOS | ||||||||||||||||||||
| Nonperforming loans/total loans | .47 | % | .53 | % | .62 | % | .46 | % | .28 | % | ||||||||||
| Nonperforming assets/total assets | .84 | .91 | .83 | .76 | .60 | |||||||||||||||
| Allowance for loan losses/total loans | .65 | .64 | .64 | .65 | .78 | |||||||||||||||
| Allowance for loan losses/nonperforming loans | 137.96 | 1.22 | 104.13 | 142.52 | 280.96 | |||||||||||||||
| Texas ratio | 10.60 | 11.76 | 10.55 | 9.13 | 5.61 | |||||||||||||||
| PROFITABILITY RATIOS | ||||||||||||||||||||
| Return on average assets | .71 | % | .70 | % | .76 | % | (.06 | ) | % | .62 | % | |||||||||
| Return on average equity | 8.83 | 8.62 | 9.06 | (.63 | ) | 5.89 | ||||||||||||||
| Net interest margin | 4.19 | 4.14 | 4.18 | 4.19 | 4.33 | |||||||||||||||
| Average loans/average deposits | 94.81 | 96.35 | 94.16 | 101.51 | 101.87 | |||||||||||||||
| CAPITAL ADEQUACY RATIOS | ||||||||||||||||||||
| Tier 1 leverage ratio | 6.77 | % | 7.18 | % | 7.29 | % | 7.68 | % | 9.55 | % | ||||||||||
| Tier 1 capital to risk weighted assets | 8.49 | 8.80 | 8.22 | 8.76 | 10.82 | |||||||||||||||
| Total capital to risk weighted assets | 9.15 | 9.45 | 8.81 | 9.39 | 11.57 | |||||||||||||||
| Average equity/average assets (for the quarter) | 8.09 | 8.18 | 8.39 | 9.52 | 10.49 | |||||||||||||||
| Tangible equity/tangible assets (at quarter end) | 7.45 | 7.25 | 7.40 | 7.90 | 9.96 | |||||||||||||||