Macatawa Bank Corporation (NASDAQ: MCBC), the holding company for
Macatawa Bank (collectively, the “Company”), today announced its
results for the first quarter 2024.
- Net income of $9.8 million in first quarter
2024 – a decrease from $12.0 million
earned in first quarter 2023 and an increase
from $9.5 million earned in fourth quarter 2023
- Net interest margin of 3.26% in first quarter
2024 versus 3.44% in first quarter
2023 and 3.28% in fourth quarter 2023
- Continued loan portfolio growth – $3.8 million, or 1.1%
annualized growth rate, for first quarter 2024,
and $121.3 million, or 9.9%, in the last 12 months
- Deposit portfolio balances decreased $131.3 million in the
first quarter 2024 due to seasonal fluctuations in
municipal and business deposits
- Strong credit quality metrics – non-performing assets
total less than $1,000, allowance to total loans coverage
of 1.30% as of March 31, 2024
- No provision for credit losses required in first quarter
2024
- Entered into a definitive merger agreement on April 15, 2024
with Wintrust Financial Corporation (“Wintrust”)
- Approximately $300,000 in merger related expenses decreased
earnings in the first quarter 2024
The Company reported net income of $9.8 million,
or $0.29 per diluted share, in first quarter
2024 compared to $12.0 million,
or $0.35 per diluted share, in first quarter
2023.
"We are pleased to report strong profitability and balance sheet
results for the first quarter 2024,” said Jon Swets, President and
CEO of the Company. “We have started the year right where we left
off with continued loan portfolio growth and maintained our
excellent asset quality. On the funding side of the balance
sheet we continue to see a slowing of the shift in our deposits to
higher interest bearing types."
Mr. Swets continued, "We believe our balance sheet is well
positioned in the current environment. In addition to the
$331.4 million of overnight funds we have at the end of the
first quarter, we have over $270 million of investment securities
maturing over the next twelve months. Over
$100 million of that total is expected to mature in the
second quarter 2024. Deploying those funds into loans or even
additional overnight funds will be accretive to our interest
income. Our liquidity, high level of capital, and excellent
asset quality put us in a good position to seize loan growth
opportunities in our markets.”
Regarding the pending merger with Wintrust, Mr. Swets noted, “We
are excited for the opportunities this combination will provide our
customers, our community and our employees. We share a core
community banking philosophy and know that this combination allows
us to continue focusing on serving our customers and growing our
presence in the markets we serve. We remain committed to the
conservative and well-disciplined approach to running the Company
that has resulted in strong and consistent financial
performance.”
Operating ResultsNet interest
income for the first quarter 2024 totaled $20.7
million, a decrease of $714,000 from fourth quarter
2023 and a decrease of $1.9 million from first
quarter 2023. Net interest margin for first quarter
2024 was 3.26% percent, down 2 basis points from fourth
quarter 2023 and down 18 basis points from first quarter 2023. Net
interest income in first quarter 2024 versus first quarter
2023 was impacted by increases in deposit rates and
significant shifting of deposits from noninterest bearing types to
money market and certificate of deposit accounts in response to the
significant increases in the federal funds rate over the past two
years. Interest on commercial loans increased
$390,000 in the first quarter 2024 compared to fourth
quarter 2023 and by $2.5 million compared to first quarter
2023 due to increases in both rate and average portfolio
balances. Interest on federal funds in the first quarter 2024
decreased by $974,000 compared to fourth quarter 2023 and by $1.7
million compared to first quarter 2023 due to lower
average balances held more than offsetting the impact of higher
rates paid. Interest on investment securities in the
first quarter 2024 decreased by $140,000 over fourth
quarter 2023 and by $53,000 over first quarter 2023,
reflecting portfolio contraction. Interest expense totaled
$8.4 million in the first quarter 2024 compared to
$8.2 million in fourth quarter 2023 and $4.7 million
in the first quarter 2023 as rates paid on deposits
increased and given the shift into interest bearing deposit
types.
Non-interest income decreased $24,000 in first quarter
2024 compared to fourth quarter 2023 and
increased $132,000 from first quarter 2023. Deposit
service charge income, including treasury management fees, was down
$33,000 in first quarter 2024 compared to fourth quarter 2023
and was up $9,000 from first quarter 2023. The decrease from
fourth quarter 2023 and slight increase from first quarter
2023 was primarily due to treasury management income.
Brokerage income was down $17,000 in first quarter
2024 compared to fourth quarter 2023 and was up $33,000
compared to first quarter 2023. The higher rate environment
continued to have a negative effect on gains on sales of mortgage
loans in first quarter 2024, which were $8,000,
down $20,000 compared to fourth quarter 2023 and down
$3,000 from first quarter 2023. The Company originated
$402,000 in mortgage loans for sale in first quarter
2024 compared to $1.2 million in fourth quarter 2023 and
$179,000 in first quarter 2023. All three periods reflected
low originations for sale as the Company intentionally shifted its
fixed rate originations to hold in portfolio given the relatively
high interest rates on production in those periods as well as
customer preference for variable rate mortgages, which the Company
holds in portfolio. Trust fees were up $165,000 in first
quarter 2024 compared to fourth quarter 2023 and were up
$187,000 compared to first quarter 2023, due largely to changes in
underlying trust asset valuations. Income from debit and credit
cards was down $33,000 in first quarter 2024 compared to
fourth quarter 2023 and was down $79,000 compared to first quarter
2023 due primarily to customer usage behavior.
Non-interest expense was $13.2 million for
first quarter 2024, compared to $14.0 million for fourth
quarter 2023 and $12.2 million for first quarter
2023. The largest component of non-interest expense was salaries
and benefits expenses. Salaries and benefits expenses were
down $1.2 million compared to fourth quarter
2023 and were up $252,000 compared to first
quarter 2023. The decrease compared to fourth quarter 2023 was
primarily due to $1.3 million in expenses related to the CEO
retirement agreement effective November 1, 2023 incurred in the
fourth quarter 2023. The table below identifies the primary
components of the changes in salaries and benefits between
periods.
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Q1 2024 |
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Q1 2024 |
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to |
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Dollars in 000s |
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Q4 2023 |
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Q1 2023 |
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Salaries and other
compensation |
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$ |
37 |
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$ |
256 |
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Executive retirement
costs |
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(1,261 |
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— |
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Salary deferral from
commercial loans |
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59 |
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(13 |
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Bonus accrual |
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— |
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— |
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Mortgage production – variable
comp |
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(57 |
) |
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2 |
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Brokerage – variable comp |
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(9 |
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10 |
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401k matching
contributions |
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21 |
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(3 |
) |
Medical insurance costs |
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29 |
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— |
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Total change in salaries and benefits |
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$ |
(1,181 |
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$ |
252 |
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Occupancy expenses were up $51,000 in first quarter
2024 compared to fourth quarter 2023 and were
down $138,000 compared to first quarter 2023. Furniture and
equipment expenses were up $8,000 compared to fourth
quarter 2023 and were up $31,000 compared to first
quarter 2023 due primarily to costs associated with equipment
and software service contracts. Legal and professional fees were up
$212,000 in first quarter 2024 compared to fourth
quarter 2023 and were up $316,000 compared to first
quarter 2023 due to higher use of corporate counsel in the
first quarter 2024, including executive management transition
and other strategic matters, including fees related to the
Company’s pending merger with Wintrust. Other categories of
non-interest expense were relatively flat compared to fourth
quarter 2023 and first quarter 2023 due to a
continued focus on expense management.
Federal income tax expense was $2.3 million for first
quarter 2024, $2.3 million for fourth quarter 2023,
and $3.0 million for first quarter 2023. The effective tax
rate was 19.35% for first quarter 2024, compared to
19.27% for fourth
quarter 2023 and 19.86% for first quarter
2023.
Asset QualityThe Company adopted ASU 2016-13,
Financial Instruments – Credit Losses, commonly referred to as
“CECL” on January 1, 2023. The impact on adoption was an increase
to the allowance for credit losses of $1.5 million. No provision
for credit losses was taken in first quarter 2024. A
provision for credit losses of $400,000 was taken in
fourth quarter 2023 and no provision for credit losses was taken in
first quarter 2023. The provision in fourth quarter 2023 was
largely driven by loan growth during the quarter. Net loan
chargeoffs for first quarter 2024 were $2,000, compared
to fourth quarter 2023 net loan recoveries of $41,000 and
first quarter 2023 net loan recoveries of $33,000. At March
31, 2024, the Company had experienced net loan recoveries in
thirty-four of the past thirty-seven quarters. Total loans past due
on payments by 30 days or more amounted to $340,000 at March
31, 2024, versus $44,000 at December 31, 2023
and $277,000 at March 31, 2023. Further, the weighted
average loan grade of the Company’s commercial loan portfolio
decreased to 3.49 at December 31, 2023 and March 31, 2024,
compared to 3.51 at March 31, 2023. A lower loan grade, which is
more favorable, decreases the need for providing for credit
losses on our portfolio.
The allowance for credit losses of $17.4 million
was 1.30% of total loans at both March 31, 2024 and December
31, 2023, and $16.8 million or 1.38% at March 31, 2023.
The coverage ratio of allowance for credit losses to nonperforming
loans continued to be strong and significantly exceeded 1-to-1
coverage at 17,440-to-1 as of March 31, 2024.
At March 31, 2024, the Company's nonperforming loans were
$1,000, representing 0.00% of total loans. This compares
to $1,000 (0.00% of total loans) at December 31, 2023 and
$75,000 (0.01% of total loans) at March 31, 2023. The
Company sold its final other real estate owned property in first
quarter 2023, recognizing a net gain of $356,000 and has had no
other real estate owned since then. Total nonperforming assets,
including other real estate owned and nonperforming loans,
decreased by $74,000 from March 31, 2023 to March
31, 2024.
A break-down of non-performing loans is shown in the table
below.
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Mar 31, |
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Dec 31, |
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Sept 30, |
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June 30, |
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Mar 31, |
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Dollars in 000s |
|
2024 |
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2023 |
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2023 |
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2023 |
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2023 |
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Commercial Real Estate |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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Commercial and Industrial |
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— |
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— |
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— |
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— |
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— |
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Total Commercial Loans |
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— |
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— |
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— |
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— |
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— |
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Residential Mortgage
Loans |
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1 |
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|
|
1 |
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|
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1 |
|
|
|
72 |
|
|
|
75 |
|
Consumer Loans |
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— |
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— |
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— |
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— |
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— |
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Total Non-Performing Loans |
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$ |
1 |
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$ |
1 |
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$ |
1 |
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|
$ |
72 |
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|
$ |
75 |
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A break-down of non-performing assets is shown in the table
below.
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Mar 31, |
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Dec 31, |
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Sept 30, |
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June 30, |
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Mar 31, |
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Dollars in 000s |
|
2024 |
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2023 |
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2023 |
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2023 |
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2023 |
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Non-Performing Loans |
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$ |
1 |
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$ |
1 |
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$ |
1 |
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|
$ |
72 |
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|
$ |
75 |
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Other Repossessed Assets |
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|
— |
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— |
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— |
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|
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— |
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— |
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Other Real Estate Owned |
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— |
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|
|
— |
|
|
|
— |
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|
|
— |
|
|
|
— |
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Total Non-Performing Assets |
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
72 |
|
|
$ |
75 |
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Balance Sheet, Liquidity and Capital
Total assets were $2.61 billion at March 31, 2024, a
decrease of $133.8 million from $2.75 billion at December
31, 2023 and a decrease of $22.2 million from $2.64
billion at March 31, 2023.
The Company’s investment securities portfolio primarily consists
of U.S. treasury and agency securities, agency mortgage backed
securities and various municipal securities. Total securities
were $792.0 million at March 31, 2024, a decrease
of $48.4 million from $840.3 million at December 31,
2023 and a decrease of $82.4 million from $874.3
million at March 31, 2023. The decrease from fourth quarter
2023 and first quarter 2023 was attributable primarily
to the Company's decision to pause investment purchase
activity, allowing maturities and paydowns to be used to fund loan
growth and provide additional liquidity in overnight funds.
The overall duration of the Company’s investment securities
portfolio at March 31, 2024 was relatively short, at 2.12
years. This provides a reliable source of cash inflows as
investment securities mature to support liquidity.
Total loans were $1.34 billion at March 31, 2024, an
increase of $3.8 million from $1.34 billion at December
31, 2023 and an increase of $121.3
million from $1.22 billion at March 31, 2023.
Commercial loans increased by $72.5 million from March 31,
2023 to March 31, 2024, along with an increase of $47.2
million in the residential mortgage portfolio and an increase of
$1.6 million in the consumer loan portfolio. Within commercial
loans, commercial real estate loans increased by $29.4 million and
commercial and industrial loans increased by $43.0 million. The
loan growth experienced in this time period was the direct result
of both new loan prospecting efforts and existing customers
beginning to draw more on existing lines and borrow more for
expansion of their businesses.
The composition of the commercial loan portfolio is shown in the
table below:
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Mar 31, |
|
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Dec 31, |
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Sept 30, |
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|
June 30, |
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|
Mar 31, |
|
Dollars in 000s |
|
2024 |
|
|
2023 |
|
|
2023 |
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|
2023 |
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|
2023 |
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Construction and
Development |
|
$ |
112,245 |
|
|
$ |
128,277 |
|
|
$ |
120,892 |
|
|
$ |
116,124 |
|
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$ |
120,268 |
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Other Commercial Real
Estate |
|
|
460,524 |
|
|
|
456,822 |
|
|
|
446,393 |
|
|
|
443,489 |
|
|
|
423,080 |
|
Commercial Loans Secured by
Real Estate |
|
|
572,769 |
|
|
|
585,099 |
|
|
|
567,285 |
|
|
|
559,613 |
|
|
|
543,348 |
|
Commercial and Industrial |
|
|
516,400 |
|
|
|
506,974 |
|
|
|
488,224 |
|
|
|
489,273 |
|
|
|
473,354 |
|
Total Commercial Loans |
|
$ |
1,089,169 |
|
|
$ |
1,092,073 |
|
|
$ |
1,055,509 |
|
|
$ |
1,048,886 |
|
|
$ |
1,016,702 |
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Total deposits were $2.28 billion at March 31, 2024,
down $131.3 million, or 5.4%, from $2.42 billion at
December 31, 2023 and down $46.5 million, or 2.0%,
from $2.33 billion at March 31, 2023. While the Company
experienced an overall decline in deposit balances compared to the
prior year, some of this was attributable to balances moving into
wealth management accounts at the Bank, so these balances should
continue to benefit the Company.
Macatawa’s deposit base is primarily made up of many small
accounts, and balances at March 31, 2024 were comprised of 46%
personal customers and 54% business customers. Core deposits -
which Management defines as deposits sourced within its local
markets - represented 100% of total deposits at March 31, 2024.
Total deposit balances of $2.28 billion at March 31, 2024
remained elevated, reflecting a $579.0 million increase, or 34%,
over pre-pandemic totals of $1.71 billion as of March 31, 2020.
Noninterest bearing demand deposits were down $28.7 million
at the end of first quarter 2024 compared to the end of
fourth quarter 2023 and were down $76.1 million compared to
the end of first quarter 2023. Interest bearing demand
deposits, money market deposits and savings deposits were down
$98.8 million from the end of fourth quarter 2023 and were
down $106.5 million from the end of first quarter 2023.
Certificates of deposit were down $3.8 million
at March 31, 2024 compared to December 31, 2023 and were
up $136.1 million compared to March 31, 2023 as customers
reacted to increases in market interest rates. All certificates of
deposit are to local customers as the Company does not have any
brokered deposits at March 31, 2024. The Company continues to be
successful at attracting and retaining core local deposit
customers. Customer deposit accounts remain insured to the highest
levels available under FDIC deposit insurance.
Management has actively pursued initiatives to maintain a strong
liquidity position. The Company has had no brokered deposits on
balance sheet since December 2011 and continues to maintain
significant on-balance sheet liquidity. At March 31, 2024, balances
held in federal funds sold and other short-term investments
amounted to $331.4 million. In addition, the Company had total
additional borrowing capacity of approximately $373.4 million
as of March 31, 2024. Because Management has maintained the
discipline of buying shorter-term bond durations in the investment
securities portfolio, there are $411.0 million in bond maturities
and paydowns coming into the Company in the next 24 months ending
March 31, 2026.
The Company's total risk-based regulatory capital ratio
at March 31, 2024 was consistent with the ratio at December
31, 2023 and March 31, 2023. Macatawa Bank’s risk-based
regulatory capital ratios continue to be at levels considerably
above those required to be categorized as “well capitalized” under
applicable regulatory capital guidelines. As such, the Bank was
categorized as "well capitalized" with $151.3 million in
excess capital over well capitalized minimums at March 31,
2024.
About Macatawa BankHeadquartered in Holland,
Michigan, Macatawa Bank offers a full range of banking, retail and
commercial lending, wealth management and ecommerce services to
individuals, businesses and governmental entities from a network of
26 full-service branches located throughout communities in Kent,
Ottawa and northern Allegan counties. The bank is recognized for
its local management team and decision making, along with providing
customers excellent service, a rewarding experience and superior
financial products. Macatawa Bank has been recognized for thirteen
years as one of “West Michigan’s 101 Best and Brightest Companies
to Work For”. For more information, visit www.macatawabank.com.
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CAUTIONARY STATEMENT: This press release contains forward-looking
statements that are based on management's current beliefs,
expectations, assumptions, estimates, plans and intentions.
Forward-looking statements are identifiable by words or phrases
such as “anticipates,” "believe," "expect," "may," "should,"
"will," “intend,” "continue," "improving," "additional," "focus,"
"forward," "future," "efforts," "strategy," "momentum,"
"positioned," and other similar words or phrases. Such statements
are based upon current beliefs and expectations and involve
substantial risks and uncertainties which could cause actual
results to differ materially from those expressed or implied by
such forward-looking statements. These statements include, among
others, statements related to trends in our key operating metrics
and financial performance, future levels of earnings and
profitability, future levels of earning assets, future asset
quality, future growth, future interest rates, future net interest
margin, future economic conditions, and future levels of unrealized
gains or losses in the investment securities portfolio. All
statements with references to future time periods are
forward-looking. Management's determination of the provision and
allowance for credit losses, the appropriate carrying value of
intangible assets (including deferred tax assets) and other real
estate owned and the fair value of investment securities (including
whether any impairment on any investment security is temporary or
other-than-temporary and the amount of any impairment) involves
judgments that are inherently forward-looking. Our ability to sell
other real estate owned at its carrying value or at all, reduce
non-performing asset expenses, utilize our deferred tax asset,
successfully implement new programs and initiatives, increase
efficiencies, maintain our current level of deposits and other
sources of funding, maintain liquidity, respond to declines in
collateral values and credit quality, improve profitability, and
produce consistent core earnings is not entirely within our control
and is not assured. The future effect of changes in the real
estate, financial and credit markets, interest rates and the
national and regional economy on the banking industry, generally,
and Macatawa Bank Corporation, specifically, are also inherently
uncertain. These statements are not guarantees of future
performance and involve certain risks, uncertainties and
assumptions ("risk factors") 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 in or implied by such forward-looking
statements. Macatawa Bank Corporation does not undertake to update
forward-looking statements to reflect the impact of circumstances
or events that may arise after the date of the forward-looking
statements.In addition, forward-looking statements include
statements regarding the outlook and expectations of Macatawa with
respect to its planned merger with Wintrust Financial Corporation
("Wintrust") pursuant to the Agreement and Plan of Merger dated
April 15, 2024 (the "Merger Agreement"), the strategic benefits and
financial benefits of the merger, including the expected impact of
the transaction on the combined company's future financial
performance and the timing of the closing of the transaction.These
statements reflect current beliefs as to the expected outcomes of
future events and are not guarantees of future performance.
These statements involve certain risks, uncertainties and
assumptions (“risk factors”) 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, implied or forecasted in such
forward-looking statements. Furthermore, Macatawa does not
undertake any obligation to update, amend, or
clarify forward-looking statements, whether as a result of new
information, future events, or otherwise. Such risks,
uncertainties and assumptions, include, among others, the
following:
- the failure to obtain necessary regulatory approvals when
expected or at all (and the risk that such approvals may result in
a materially burdensome regulatory condition (as defined in the
Merger Agreement));
- the failure of Macatawa to obtain shareholder approval, or for
either party to satisfy any of the other closing conditions to the
transaction on a timely basis or at all;
- the occurrence of any event, change or other circumstances that
could give rise to the right of one or both of the parties to
terminate the Merger Agreement;
- the possibility that the anticipated benefits of the
transaction are not realized when expected or at all, including as
a result of the impact of, or problems arising from, the
integration of the two companies or as a result of the strength of
the economy, competitive factors in the areas where Macatawa and
Wintrust do business, or as a result of other unexpected factors or
events;
- the impact of purchase accounting with respect to the
transaction, or any change in the assumptions used regarding the
assets purchased and liabilities assumed to determine their fair
value;
- diversion of management’s attention from ongoing business
operations and opportunities;
- potential adverse reactions or changes to business or employee
relationships, including those resulting from the announcement or
completion of the transaction; and
- the outcome of any legal proceedings that may be instituted
against Macatawa or Wintrust.
Additional risk factors include, but are not limited to, the risk
factors described in Item 1A in Macatawa's Annual Report on
Form 10-K for the year ended December 31, 2023 and in any of
Macatawa's subsequent SEC filings, and in Item 1A in Wintrust's
Annual Report on Form 10-K for the year ended December 31, 2023 and
in any of Wintrust's subsequent SEC filings. |
|
Important Additional Information and
Where to Find It
This communication is being made in respect of
the proposed Merger between Macatawa and Wintrust. In connection
with the proposed Merger, Wintrust will file with the SEC a
Registration Statement on Form S-4 that will include a Proxy
Statement and Prospectus of Macatawa, as well as other relevant
documents regarding the proposed Merger. A definitive Proxy
Statement and Prospectus will be sent to Macatawa shareholders when
available. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE
PROXY STATEMENT AND PROSPECTUS REGARDING THE PROPOSED MERGER WHEN
IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH
THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE
DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
This communication does not constitute an offer
to sell or the solicitation of an offer to buy any securities or a
solicitation of any vote or approval, nor shall there be any sale
of securities in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities laws of such jurisdiction.
A free copy of the Proxy Statement and
Prospectus, once available, as well as other filings containing
information about Macatawa, Wintrust and the proposed transaction
may be obtained at the SEC’s Internet site http://www.sec.gov. You
will also be able to obtain these documents, free of charge, from
Macatawa under the "Investor Relations" section of its website,
www.macatawabank.com (which website is not incorporated herein by
reference), by clicking the "Investor Relations/SEC Filings" link.
In addition, investors and security holders may obtain free copies
of the documents Macatawa has filed with the SEC by directing a
request to Macatawa Bank Corporation, Attn: Bryan Barker, 10753
Macatawa Drive, Holland, Michigan 49424 or by phone at (616)
494-1448, and may obtain free copies of the documents Wintrust has
filed with the SEC by directing a request to Wintrust Financial
Corporation, Corporate Secretary, Wintrust Financial Corporation,
9700 West Higgins Road, Suite 800, Rosemont, Illinois 60018 or by
phone at (847) 939-9000.
Participants in
Solicitation
Macatawa, Wintrust and certain of their
respective directors, executive officers and other members of
management or employees may be deemed to be participants in the
solicitation of proxies from Macatawa shareholders in respect of
the proposed Merger, which will be described in the Proxy Statement
and Prospectus. Information about the directors and executive
officers of Macatawa and their ownership of Macatawa common stock
is also set forth in Macatawa’s definitive proxy statement for its
2023 annual meeting of shareholders, which was filed with the SEC
on March 17, 2023, its Annual Report on Form 10-K for the fiscal
year ended December 31, 2023, which was filed with the SEC on
February 15, 2024 and in subsequent documents filed with the SEC,
each of which can be obtained free of charge from the sources
indicated above. Additional information regarding the interests of
those participants and other persons who may be deemed participants
in the transaction may be obtained by reading the Proxy Statement
and Prospectus regarding the proposed Merger when it becomes
available. Free copies of this document may be obtained as
described in the preceding paragraph.
|
MACATAWA
BANK CORPORATION |
CONSOLIDATED
FINANCIAL SUMMARY |
(Unaudited) |
(Dollars in thousands except per share information) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st Qtr |
|
4th Qtr |
|
1st Qtr |
EARNINGS
SUMMARY |
|
2024 |
|
2023 |
|
2023 |
Total interest
income |
|
$ |
29,077 |
|
|
$ |
29,638 |
|
|
$ |
27,266 |
|
Total interest
expense |
|
|
8,350 |
|
|
|
8,197 |
|
|
|
4,650 |
|
Net interest income |
|
|
20,727 |
|
|
|
21,441 |
|
|
|
22,616 |
|
Provision for credit
losses |
|
|
- |
|
|
|
400 |
|
|
|
- |
|
Net interest income after provision for credit losses |
|
|
20,727 |
|
|
|
21,041 |
|
|
|
22,616 |
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME |
|
|
|
|
|
|
Deposit service
charges |
|
|
1,003 |
|
|
|
1,036 |
|
|
|
994 |
|
Net gains on mortgage
loans |
|
|
8 |
|
|
|
28 |
|
|
|
11 |
|
Trust fees |
|
|
1,220 |
|
|
|
1,055 |
|
|
|
1,033 |
|
Other |
|
|
2,429 |
|
|
|
2,565 |
|
|
|
2,490 |
|
Total non-interest income |
|
|
4,660 |
|
|
|
4,684 |
|
|
|
4,528 |
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE |
|
|
|
|
|
|
Salaries and
benefits |
|
|
6,950 |
|
|
|
8,131 |
|
|
|
6,698 |
|
Occupancy |
|
|
999 |
|
|
|
948 |
|
|
|
1,137 |
|
Furniture and
equipment |
|
|
1,062 |
|
|
|
1,054 |
|
|
|
1,031 |
|
FDIC assessment |
|
|
330 |
|
|
|
330 |
|
|
|
330 |
|
Other |
|
|
3,904 |
|
|
|
3,501 |
|
|
|
2,969 |
|
Total non-interest expense |
|
|
13,245 |
|
|
|
13,964 |
|
|
|
12,165 |
|
Income before income
tax |
|
|
12,142 |
|
|
|
11,761 |
|
|
|
14,979 |
|
Income tax
expense |
|
|
2,349 |
|
|
|
2,266 |
|
|
|
2,975 |
|
Net
income |
|
$ |
9,793 |
|
|
$ |
9,495 |
|
|
$ |
12,004 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share |
|
$ |
0.29 |
|
|
$ |
0.28 |
|
|
$ |
0.35 |
|
Diluted earnings per
common share |
|
$ |
0.29 |
|
|
$ |
0.28 |
|
|
$ |
0.35 |
|
Return on average
assets |
|
|
1.48 |
% |
|
|
1.41 |
% |
|
|
1.74 |
% |
Return on average
equity |
|
|
13.61 |
% |
|
|
13.89 |
% |
|
|
19.19 |
% |
Net interest margin
(fully taxable equivalent) |
|
|
3.26 |
% |
|
|
3.28 |
% |
|
|
3.44 |
% |
Efficiency ratio |
|
|
52.17 |
% |
|
|
53.45 |
% |
|
|
44.82 |
% |
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET
DATA |
|
March 31 |
|
December 31 |
March 31 |
Assets |
|
2024 |
|
2023 |
|
2023 |
Cash and due from
banks |
|
$ |
27,081 |
|
|
$ |
32,317 |
|
|
$ |
29,402 |
|
Federal funds sold and
other short-term investments |
|
|
331,400 |
|
|
|
418,035 |
|
|
|
391,336 |
|
Debt securities
available for sale |
|
|
491,214 |
|
|
|
508,798 |
|
|
|
525,959 |
|
Debt securities held
to maturity |
|
|
300,751 |
|
|
|
331,523 |
|
|
|
348,387 |
|
Federal Home Loan Bank
Stock |
|
|
10,211 |
|
|
|
10,211 |
|
|
|
10,211 |
|
Loans held for
sale |
|
|
- |
|
|
|
- |
|
|
|
87 |
|
Total loans |
|
|
1,342,208 |
|
|
|
1,338,386 |
|
|
|
1,220,939 |
|
Less allowance for
credit losses |
|
|
17,440 |
|
|
|
17,442 |
|
|
|
16,794 |
|
Net loans |
|
|
1,324,768 |
|
|
|
1,320,944 |
|
|
|
1,204,145 |
|
Premises and
equipment, net |
|
|
38,971 |
|
|
|
38,604 |
|
|
|
40,249 |
|
Bank-owned life
insurance |
|
|
54,535 |
|
|
|
54,249 |
|
|
|
53,557 |
|
Other real estate
owned |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Other assets |
|
|
35,975 |
|
|
|
34,018 |
|
|
|
33,820 |
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets |
|
$ |
2,614,906 |
|
|
$ |
2,748,699 |
|
|
$ |
2,637,153 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and Shareholders' Equity |
|
|
|
|
|
|
Noninterest-bearing
deposits |
|
$ |
614,325 |
|
|
$ |
643,035 |
|
|
$ |
690,444 |
|
Interest-bearing
deposits |
|
|
1,670,076 |
|
|
|
1,772,695 |
|
|
|
1,640,451 |
|
Total deposits |
|
|
2,284,401 |
|
|
|
2,415,730 |
|
|
|
2,330,895 |
|
Other borrowed
funds |
|
|
20,000 |
|
|
|
30,000 |
|
|
|
30,000 |
|
Long-term debt |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Other liabilities |
|
|
17,532 |
|
|
|
15,884 |
|
|
|
15,690 |
|
Total
Liabilities |
|
|
2,321,933 |
|
|
|
2,461,614 |
|
|
|
2,376,585 |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity |
|
|
292,973 |
|
|
|
287,085 |
|
|
|
260,568 |
|
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities and Shareholders' Equity |
|
$ |
2,614,906 |
|
|
$ |
2,748,699 |
|
|
$ |
2,637,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MACATAWA
BANK CORPORATION |
SELECTED
CONSOLIDATED FINANCIAL DATA |
(Unaudited) |
(Dollars in thousands except per share information) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly |
|
|
1st Qtr |
|
4th Qtr |
|
3rd Qtr |
|
2nd Qtr |
|
1st Qtr |
|
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
EARNINGS SUMMARY |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
20,727 |
|
|
$ |
21,441 |
|
|
$ |
22,244 |
|
|
$ |
21,146 |
|
|
$ |
22,616 |
|
Provision
for credit losses |
|
|
- |
|
|
|
400 |
|
|
|
(150 |
) |
|
|
300 |
|
|
|
- |
|
Total
non-interest income |
|
|
4,660 |
|
|
|
4,684 |
|
|
|
4,616 |
|
|
|
4,613 |
|
|
|
4,528 |
|
Total
non-interest expense |
|
|
13,245 |
|
|
|
13,964 |
|
|
|
12,789 |
|
|
|
12,673 |
|
|
|
12,165 |
|
Federal
income tax expense |
|
|
2,349 |
|
|
|
2,266 |
|
|
|
2,808 |
|
|
|
2,474 |
|
|
|
2,975 |
|
Net
income |
|
$ |
9,793 |
|
|
$ |
9,495 |
|
|
$ |
11,413 |
|
|
$ |
10,312 |
|
|
$ |
12,004 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share |
|
$ |
0.29 |
|
|
$ |
0.28 |
|
|
$ |
0.33 |
|
|
$ |
0.30 |
|
|
$ |
0.35 |
|
Diluted
earnings per common share |
|
$ |
0.29 |
|
|
$ |
0.28 |
|
|
$ |
0.33 |
|
|
$ |
0.30 |
|
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
|
|
|
MARKET DATA |
|
|
|
|
|
|
|
|
|
|
Book value
per common share |
|
$ |
8.53 |
|
|
$ |
8.35 |
|
|
$ |
7.87 |
|
|
$ |
7.69 |
|
|
$ |
7.60 |
|
Tangible
book value per common share |
|
$ |
8.53 |
|
|
$ |
8.35 |
|
|
$ |
7.87 |
|
|
$ |
7.69 |
|
|
$ |
7.60 |
|
Market value
per common share |
|
$ |
9.79 |
|
|
$ |
11.28 |
|
|
$ |
8.96 |
|
|
$ |
9.28 |
|
|
$ |
10.22 |
|
Average
basic common shares |
|
|
34,361,562 |
|
|
|
34,325,743 |
|
|
|
34,291,487 |
|
|
|
34,292,179 |
|
|
|
34,297,221 |
|
Average
diluted common shares |
|
|
34,361,562 |
|
|
|
34,325,743 |
|
|
|
34,291,487 |
|
|
|
34,292,179 |
|
|
|
34,297,221 |
|
Period end
common shares |
|
|
34,361,562 |
|
|
|
34,361,562 |
|
|
|
34,291,487 |
|
|
|
34,291,487 |
|
|
|
34,292,294 |
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS |
|
|
|
|
|
|
|
|
|
|
Return on
average assets |
|
|
1.48 |
% |
|
|
1.41 |
% |
|
|
1.66 |
% |
|
|
1.57 |
% |
|
|
1.74 |
% |
Return on
average equity |
|
|
13.61 |
% |
|
|
13.89 |
% |
|
|
17.14 |
% |
|
|
15.70 |
% |
|
|
19.19 |
% |
Efficiency
ratio |
|
|
52.17 |
% |
|
|
53.45 |
% |
|
|
47.61 |
% |
|
|
49.20 |
% |
|
|
44.82 |
% |
Full-time
equivalent employees (period end) |
|
|
313 |
|
|
|
314 |
|
|
|
313 |
|
|
|
322 |
|
|
|
317 |
|
|
|
|
|
|
|
|
|
|
|
|
YIELDS AND COST OF FUNDS RATIOS |
|
|
|
|
|
|
|
|
|
|
Federal
funds sold and other short-term investments |
|
|
5.42 |
% |
|
|
5.41 |
% |
|
|
5.36 |
% |
|
|
5.05 |
% |
|
|
4.58 |
% |
Total
securities (fully taxable equivalent) |
|
|
2.50 |
% |
|
|
2.50 |
% |
|
|
2.47 |
% |
|
|
2.43 |
% |
|
|
2.40 |
% |
Commercial
loans |
|
|
5.78 |
% |
|
|
5.73 |
% |
|
|
5.66 |
% |
|
|
5.58 |
% |
|
|
5.40 |
% |
Residential
mortgage loans |
|
|
4.53 |
% |
|
|
4.41 |
% |
|
|
4.20 |
% |
|
|
3.93 |
% |
|
|
3.73 |
% |
Consumer
loans |
|
|
8.15 |
% |
|
|
8.15 |
% |
|
|
8.00 |
% |
|
|
7.63 |
% |
|
|
7.20 |
% |
Total
loans |
|
|
5.70 |
% |
|
|
5.65 |
% |
|
|
5.57 |
% |
|
|
5.47 |
% |
|
|
5.28 |
% |
Total yield
on interest earning assets (fully taxable equivalent) |
|
|
4.58 |
% |
|
|
4.54 |
% |
|
|
4.48 |
% |
|
|
4.31 |
% |
|
|
4.15 |
% |
Interest
bearing demand deposits |
|
|
0.48 |
% |
|
|
0.53 |
% |
|
|
0.45 |
% |
|
|
0.48 |
% |
|
|
0.43 |
% |
Savings and
money market accounts |
|
|
2.06 |
% |
|
|
1.97 |
% |
|
|
1.90 |
% |
|
|
1.64 |
% |
|
|
1.35 |
% |
Time
deposits |
|
|
4.35 |
% |
|
|
4.19 |
% |
|
|
3.86 |
% |
|
|
3.23 |
% |
|
|
2.22 |
% |
Total
interest bearing deposits |
|
|
1.94 |
% |
|
|
1.85 |
% |
|
|
1.69 |
% |
|
|
1.42 |
% |
|
|
1.05 |
% |
Total
deposits |
|
|
1.43 |
% |
|
|
1.35 |
% |
|
|
1.21 |
% |
|
|
1.01 |
% |
|
|
0.74 |
% |
Other
borrowed funds |
|
|
1.99 |
% |
|
|
2.08 |
% |
|
|
2.08 |
% |
|
|
2.08 |
% |
|
|
2.08 |
% |
Total
average cost of funds on interest bearing liabilities |
|
|
1.94 |
% |
|
|
1.86 |
% |
|
|
1.69 |
% |
|
|
1.43 |
% |
|
|
1.07 |
% |
Net interest
margin (fully taxable equivalent) |
|
|
3.26 |
% |
|
|
3.28 |
% |
|
|
3.35 |
% |
|
|
3.36 |
% |
|
|
3.44 |
% |
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY |
|
|
|
|
|
|
|
|
|
|
Gross
charge-offs |
|
$ |
32 |
|
|
$ |
31 |
|
|
$ |
41 |
|
|
$ |
22 |
|
|
$ |
21 |
|
Net
charge-offs/(recoveries) |
|
$ |
2 |
|
|
$ |
(41 |
) |
|
$ |
(42 |
) |
|
$ |
(15 |
) |
|
$ |
(33 |
) |
Net
charge-offs to average loans (annualized) |
|
|
0.00 |
% |
|
|
-0.01 |
% |
|
|
-0.01 |
% |
|
|
0.00 |
% |
|
|
-0.01 |
% |
Nonperforming loans |
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
72 |
|
|
$ |
75 |
|
Other real
estate and repossessed assets |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
Nonperforming loans to total loans |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
Nonperforming assets to total assets |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
Allowance
for credit losses |
|
$ |
17,440 |
|
|
$ |
17,442 |
|
|
$ |
17,001 |
|
|
$ |
17,109 |
|
|
$ |
16,794 |
|
Allowance
for credit losses to total loans |
|
|
1.30 |
% |
|
|
1.30 |
% |
|
|
1.32 |
% |
|
|
1.35 |
% |
|
|
1.38 |
% |
Allowance
for credit losses to nonperforming loans |
|
1744000.00% |
|
1744200.00% |
|
1700100.00% |
|
23762.50% |
|
22392.00% |
|
|
|
|
|
|
|
|
|
|
|
CAPITAL |
|
|
|
|
|
|
|
|
|
|
Average
equity to average assets |
|
|
10.87 |
% |
|
|
10.16 |
% |
|
|
9.71 |
% |
|
|
10.01 |
% |
|
|
9.07 |
% |
Common
equity tier 1 to risk weighted assets (Consolidated) |
|
|
18.16 |
% |
|
|
17.70 |
% |
|
|
17.66 |
% |
|
|
17.16 |
% |
|
|
17.08 |
% |
Tier 1
capital to average assets (Consolidated) |
|
|
11.83 |
% |
|
|
11.35 |
% |
|
|
10.91 |
% |
|
|
11.08 |
% |
|
|
10.26 |
% |
Total
capital to risk-weighted assets (Consolidated) |
|
|
19.16 |
% |
|
|
18.69 |
% |
|
|
18.65 |
% |
|
|
18.16 |
% |
|
|
18.08 |
% |
Common
equity tier 1 to risk weighted assets (Bank) |
|
|
17.67 |
% |
|
|
17.18 |
% |
|
|
17.14 |
% |
|
|
16.66 |
% |
|
|
16.58 |
% |
Tier 1
capital to average assets (Bank) |
|
|
11.52 |
% |
|
|
11.02 |
% |
|
|
10.59 |
% |
|
|
10.75 |
% |
|
|
9.96 |
% |
Total
capital to risk-weighted assets (Bank) |
|
|
18.67 |
% |
|
|
18.18 |
% |
|
|
18.13 |
% |
|
|
17.66 |
% |
|
|
17.58 |
% |
Common
equity to assets |
|
|
11.20 |
% |
|
|
10.44 |
% |
|
|
9.78 |
% |
|
|
10.03 |
% |
|
|
9.88 |
% |
Tangible
common equity to assets |
|
|
11.20 |
% |
|
|
10.44 |
% |
|
|
9.78 |
% |
|
|
10.03 |
% |
|
|
9.88 |
% |
|
|
|
|
|
|
|
|
|
|
|
END
OF PERIOD BALANCES |
|
|
|
|
|
|
|
|
|
|
Total
portfolio loans |
|
$ |
1,342,208 |
|
|
$ |
1,338,386 |
|
|
$ |
1,291,290 |
|
|
$ |
1,271,576 |
|
|
$ |
1,220,939 |
|
Earning
assets |
|
|
2,507,502 |
|
|
|
2,637,111 |
|
|
|
2,648,445 |
|
|
|
2,518,396 |
|
|
|
2,531,184 |
|
Total
assets |
|
|
2,614,906 |
|
|
|
2,748,699 |
|
|
|
2,759,710 |
|
|
|
2,630,254 |
|
|
|
2,637,153 |
|
Deposits |
|
|
2,284,401 |
|
|
|
2,415,730 |
|
|
|
2,445,586 |
|
|
|
2,321,545 |
|
|
|
2,330,895 |
|
Total
shareholders' equity |
|
|
292,973 |
|
|
|
287,085 |
|
|
|
269,877 |
|
|
|
263,819 |
|
|
|
260,568 |
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES |
|
|
|
|
|
|
|
|
|
|
Federal
funds sold and other short-term investments |
|
$ |
340,396 |
|
|
$ |
407,278 |
|
|
$ |
467,434 |
|
|
$ |
360,023 |
|
|
$ |
555,670 |
|
Total
securities |
|
|
853,489 |
|
|
|
875,067 |
|
|
|
879,379 |
|
|
|
900,724 |
|
|
|
898,691 |
|
Total
portfolio loans |
|
|
1,334,254 |
|
|
|
1,295,545 |
|
|
|
1,274,344 |
|
|
|
1,246,217 |
|
|
|
1,186,684 |
|
Earning
assets |
|
|
2,537,801 |
|
|
|
2,587,704 |
|
|
|
2,630,894 |
|
|
|
2,516,837 |
|
|
|
2,650,972 |
|
Total
assets |
|
|
2,648,257 |
|
|
|
2,691,336 |
|
|
|
2,743,069 |
|
|
|
2,625,334 |
|
|
|
2,757,594 |
|
Non-interest
bearing deposits |
|
|
609,090 |
|
|
|
648,084 |
|
|
|
692,436 |
|
|
|
674,565 |
|
|
|
732,434 |
|
Total
interest bearing deposits |
|
|
1,706,640 |
|
|
|
1,721,910 |
|
|
|
1,737,579 |
|
|
|
1,641,857 |
|
|
|
1,727,883 |
|
Total
deposits |
|
|
2,315,731 |
|
|
|
2,369,994 |
|
|
|
2,430,015 |
|
|
|
2,316,422 |
|
|
|
2,460,318 |
|
Borrowings |
|
|
25,615 |
|
|
|
30,000 |
|
|
|
30,000 |
|
|
|
30,000 |
|
|
|
30,000 |
|
Total
shareholders' equity |
|
|
287,742 |
|
|
|
273,525 |
|
|
|
266,339 |
|
|
|
262,764 |
|
|
|
250,160 |
|
|
|
|
|
|
|
|
|
|
|
|
Contact:
Bryan L. Barker
Chief Financial Officer
616-494-1448
bbarker@macatawabank.com
Macatawa Bank (NASDAQ:MCBC)
過去 株価チャート
から 6 2024 まで 7 2024
Macatawa Bank (NASDAQ:MCBC)
過去 株価チャート
から 7 2023 まで 7 2024