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.
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 |
|
|
|
|
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Contact: |
Jesse A. Deering, EVP & Chief Financial Officer (248)
290-5906 /jdeering@bankmbank.com |
Website: |
www.bankmbank.com |
Mackinac Financial (NASDAQ:MFNC)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Mackinac Financial (NASDAQ:MFNC)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024