● |
Net income of $6.6 million in second quarter 2022 versus $6.0 million in first quarter 2022 and $7.8 million in second quarter 2021
|
● |
Net interest income of $14.8 million in second quarter 2022 versus $12.7 million in first quarter 2022 and $14.5 million in second quarter 2021
|
● |
Strong credit metrics and net loan recoveries resulted in no provision for loan losses for the quarter
|
● |
Continued loan portfolio growth - third quarter in a row
|
● |
Grew investment securities portfolio by $187.7 million in second quarter 2022 to supplement loan growth and continue strategic deployment of excess liquidity
|
● |
Reduction of $55.0 million in FHLB borrowings, resulting in over $650,000 in annual interest expense savings
|
Dollars in 000s
|
Q2 2022
to
Q1 2022
|
Q2 2022
to
Q2 2021
| ||||||
Salaries and other compensation
|
$
|
146
|
$
|
63
| ||||
Salary deferral from commercial loans
|
(4
|
)
|
50
| |||||
Bonus accrual
|
(1
|
)
|
3
| |||||
Mortgage production - variable comp
|
(3
|
)
|
(239
|
)
| ||||
401k matching contributions
|
(24
|
)
|
85
| |||||
Medical insurance costs
|
---
|
(62
|
)
| |||||
Total change in salaries and benefits
|
$
|
114
|
$
|
(100
|
)
|
Dollars in 000s
|
June 30,
2022
|
Mar 31,
2022
|
Dec 31,
2021
|
Sept 30,
2021
|
June 30,
2021
| |||||||||||||||
Commercial Real Estate
|
$
|
5
|
$
|
5
|
$
|
5
|
$
|
332
|
$
|
341
| ||||||||||
Commercial and Industrial
|
1
|
1
|
1
|
---
|
---
| |||||||||||||||
Total Commercial Loans
|
6
|
6
|
6
|
332
|
341
| |||||||||||||||
Residential Mortgage Loans
|
84
|
84
|
86
|
88
|
92
| |||||||||||||||
Consumer Loans
|
---
|
---
|
---
|
---
|
---
| |||||||||||||||
Total Non-Performing Loans
|
$
|
90
|
$
|
90
|
$
|
92
|
$
|
420
|
$
|
433
|
Dollars in 000s
|
June 30,
2022
|
Mar 31,
2022
|
Dec 31,
2021
|
Sept 30,
2021
|
June 30,
2021
| |||||||||||||||
Non-Performing Loans
|
$
|
90
|
$
|
90
|
$
|
92
|
$
|
420
|
$
|
433
| ||||||||||
Other Repossessed Assets
|
---
|
---
|
---
|
---
|
---
| |||||||||||||||
Other Real Estate Owned
|
2,343
|
2,343
|
2,343
|
2,343
|
2,343
| |||||||||||||||
Total Non-Performing Assets
|
$
|
2,433
|
$
|
2,433
|
$
|
2,435
|
$
|
2,763
|
$
|
2,776
|
Dollars in 000s
|
June 30,
2022
|
Mar 31,
2022
|
Dec 31,
2021
|
Sept 30,
2021
|
June 30,
2021
| |||||||||||||||
Construction and Development
|
$
|
107,325
|
$
|
104,945
|
$
|
103,755
|
$
|
104,636
|
$
|
102,608
| ||||||||||
Other Commercial Real Estate
|
411,778
|
417,368
|
412,346
|
422,574
|
427,291
| |||||||||||||||
Commercial Loans Secured by Real Estate
|
519,103
|
522,313
|
516,101
|
527,210
|
529,899
| |||||||||||||||
Commercial and Industrial
|
407,788
|
402,854
|
378,318
|
356,812
|
359,846
| |||||||||||||||
Paycheck Protection Program
|
2,791
|
7,393
|
41,939
|
77,571
|
169,679
| |||||||||||||||
Total Commercial Loans
|
$
|
929,682
|
$
|
932,560
|
$
|
936,358
|
$
|
961,593
|
$
|
1,059,424
|
Jon W. Swets
| |
Chief Financial Officer
| |
616-494-7645
| |
jswets@macatawabank.com
|
MACATAWA BANK CORPORATION
CONSOLIDATED FINANCIAL SUMMARY
(Unaudited)
(Dollars in thousands except per share information)
|
Quarterly
|
Six Months Ended
June 30
| |||||||||||||||||||
EARNINGS SUMMARY
|
2nd Qtr
2022
|
1st Qtr
2022
|
2nd Qtr
2021
| |||||||||||||||||
2022
|
2021
| |||||||||||||||||||
Total interest income
|
$
|
15,435
|
$
|
13,143
|
$
|
15,184
|
$
|
28,578
|
$
|
30,458
| ||||||||||
Total interest expense
|
592
|
478
|
727
|
1,070
|
1,511
| |||||||||||||||
Net interest income
|
14,843
|
12,665
|
14,457
|
27,508
|
28,947
| |||||||||||||||
Provision for loan losses
|
-
|
(1,500
|
)
|
(750
|
)
|
(1,500
|
)
|
(750
|
)
| |||||||||||
Net interest income after provision for loan losses
|
14,843
|
14,165
|
15,207
|
29,008
|
29,697
| |||||||||||||||
NON-INTEREST INCOME
| ||||||||||||||||||||
Deposit service charges
|
1,218
|
1,211
|
1,065
|
2,430
|
2,057
| |||||||||||||||
Net gains on mortgage loans
|
199
|
308
|
1,311
|
508
|
3,326
| |||||||||||||||
Trust fees
|
1,096
|
1,088
|
1,133
|
2,184
|
2,138
| |||||||||||||||
Other
|
2,618
|
2,358
|
2,660
|
4,974
|
5,186
| |||||||||||||||
Total non-interest income
|
5,131
|
4,965
|
6,169
|
10,096
|
12,707
| |||||||||||||||
NON-INTEREST EXPENSE
| ||||||||||||||||||||
Salaries and benefits
|
6,402
|
6,289
|
6,502
|
12,691
|
12,914
| |||||||||||||||
Occupancy
|
1,071
|
1,172
|
994
|
2,243
|
2,031
| |||||||||||||||
Furniture and equipment
|
988
|
1,016
|
978
|
2,004
|
1,915
| |||||||||||||||
FDIC assessment
|
197
|
180
|
159
|
377
|
329
| |||||||||||||||
Other
|
3,255
|
3,082
|
3,085
|
6,337
|
6,014
| |||||||||||||||
Total non-interest expense
|
11,913
|
11,739
|
11,718
|
23,652
|
23,203
| |||||||||||||||
Income before income tax
|
8,061
|
7,391
|
9,658
|
15,452
|
19,201
| |||||||||||||||
Income tax expense
|
1,493
|
1,391
|
1,840
|
2,884
|
3,605
| |||||||||||||||
Net income
|
$
|
6,568
|
$
|
6,000
|
$
|
7,818
|
$
|
12,568
|
$
|
15,596
| ||||||||||
Basic earnings per common share
|
$
|
0.19
|
$
|
0.18
|
$
|
0.23
|
$
|
0.37
|
$
|
0.46
| ||||||||||
Diluted earnings per common share
|
$
|
0.19
|
$
|
0.18
|
$
|
0.23
|
$
|
0.37
|
$
|
0.46
| ||||||||||
Return on average assets
|
0.92
|
%
|
0.82
|
%
|
1.11
|
%
|
0.87
|
%
|
1.14
|
%
| ||||||||||
Return on average equity
|
10.80
|
%
|
9.54
|
%
|
12.79
|
%
|
10.16
|
%
|
12.85
|
%
| ||||||||||
Net interest margin (fully taxable equivalent)
|
2.19
|
%
|
1.85
|
%
|
2.19
|
%
|
2.02
|
%
|
2.25
|
%
| ||||||||||
Efficiency ratio
|
59.64
|
%
|
66.59
|
%
|
56.81
|
%
|
62.90
|
%
|
55.70
|
%
|
BALANCE SHEET DATA
Assets
|
June 30
2022
|
March 31
2022
|
June 30
2021
| |||||||||
Cash and due from banks
|
$
|
38,376
|
$
|
31,957
|
$
|
31,051
| ||||||
Federal funds sold and other short-term investments
|
721,826
|
1,078,983
|
1,189,266
| |||||||||
Debt securities available for sale
|
435,628
|
346,114
|
239,955
| |||||||||
Debt securities held to maturity
|
352,721
|
254,565
|
121,867
| |||||||||
Federal Home Loan Bank Stock
|
10,211
|
10,211
|
11,558
| |||||||||
Loans held for sale
|
1,163
|
855
|
4,752
| |||||||||
Total loans
|
1,111,915
|
1,101,902
|
1,238,327
| |||||||||
Less allowance for loan loss
|
14,631
|
14,616
|
16,806
| |||||||||
Net loans
|
1,097,284
|
1,087,286
|
1,221,521
| |||||||||
Premises and equipment, net
|
41,088
|
41,413
|
42,906
| |||||||||
Bank-owned life insurance
|
52,963
|
52,720
|
52,507
| |||||||||
Other real estate owned
|
2,343
|
2,343
|
2,343
| |||||||||
Other assets
|
27,605
|
23,436
|
23,360
| |||||||||
Total Assets
|
$
|
2,781,208
|
$
|
2,929,883
|
$
|
2,941,086
| ||||||
Liabilities and Shareholders' Equity
| ||||||||||||
Noninterest-bearing deposits
|
$
|
903,334
|
$
|
918,907
|
$
|
956,961
| ||||||
Interest-bearing deposits
|
1,591,249
|
1,663,390
|
1,643,115
| |||||||||
Total deposits
|
2,494,583
|
2,582,297
|
2,600,076
| |||||||||
Other borrowed funds
|
30,000
|
85,000
|
60,000
| |||||||||
Long-term debt
|
-
|
-
|
20,619
| |||||||||
Other liabilities
|
13,516
|
16,984
|
12,174
| |||||||||
Total Liabilities
|
2,538,099
|
2,684,281
|
2,692,869
| |||||||||
Shareholders' equity
|
243,109
|
245,602
|
248,217
| |||||||||
Total Liabilities and Shareholders' Equity
|
$
|
2,781,208
|
$
|
2,929,883
|
$
|
2,941,086
|
MACATAWA BANK CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Unaudited)
(Dollars in thousands except per share information)
|
Quarterly
|
Year to Date
| |||||||||||||||||||||||||||
2nd Qtr
2022
|
1st Qtr
2022
|
4th Qtr
2021
|
3rd Qtr
2021
|
2nd Qtr
2021
|
2022
|
2021
| ||||||||||||||||||||||
EARNINGS SUMMARY
| ||||||||||||||||||||||||||||
Net interest income
|
$
|
14,843
|
$
|
12,665
|
$
|
12,826
|
$
|
14,296
|
$
|
14,457
|
$
|
27,508
|
$
|
28,947
| ||||||||||||||
Provision for loan losses
|
-
|
(1,500
|
)
|
(750
|
)
|
(550
|
)
|
(750
|
)
|
(1,500
|
)
|
(750
|
)
| |||||||||||||||
Total non-interest income
|
5,131
|
4,965
|
5,346
|
5,642
|
6,169
|
10,096
|
12,707
| |||||||||||||||||||||
Total non-interest expense
|
11,913
|
11,739
|
11,337
|
11,550
|
11,718
|
23,652
|
23,203
| |||||||||||||||||||||
Federal income tax expense
|
1,493
|
1,391
|
1,369
|
1,736
|
1,840
|
2,884
|
3,605
| |||||||||||||||||||||
Net income
|
$
|
6,568
|
$
|
6,000
|
$
|
6,216
|
$
|
7,202
|
$
|
7,818
|
$
|
12,568
|
$
|
15,596
| ||||||||||||||
Basic earnings per common share
|
$
|
0.19
|
$
|
0.18
|
$
|
0.18
|
$
|
0.21
|
$
|
0.23
|
$
|
0.37
|
$
|
0.46
| ||||||||||||||
Diluted earnings per common share
|
$
|
0.19
|
$
|
0.18
|
$
|
0.18
|
$
|
0.21
|
$
|
0.23
|
$
|
0.37
|
$
|
0.46
| ||||||||||||||
MARKET DATA
| ||||||||||||||||||||||||||||
Book value per common share
|
$
|
7.10
|
$
|
7.17
|
$
|
7.41
|
$
|
7.38
|
$
|
7.26
|
$
|
7.10
|
$
|
7.26
| ||||||||||||||
Tangible book value per common share
|
$
|
7.10
|
$
|
7.17
|
$
|
7.41
|
$
|
7.38
|
$
|
7.26
|
$
|
7.10
|
$
|
7.26
| ||||||||||||||
Market value per common share
|
$
|
8.84
|
$
|
9.01
|
$
|
8.82
|
$
|
8.03
|
$
|
8.75
|
$
|
8.84
|
$
|
8.75
| ||||||||||||||
Average basic common shares
|
34,253,846
|
34,254,772
|
34,229,664
|
34,190,264
|
34,193,016
|
34,254,306
|
34,194,264
| |||||||||||||||||||||
Average diluted common shares
|
34,253,846
|
34,254,772
|
34,229,664
|
34,190,264
|
34,193,016
|
34,254,306
|
34,194,264
| |||||||||||||||||||||
Period end common shares
|
34,253,147
|
34,253,962
|
34,259,945
|
34,189,799
|
34,192,317
|
34,253,147
|
34,192,317
| |||||||||||||||||||||
PERFORMANCE RATIOS
| ||||||||||||||||||||||||||||
Return on average assets
|
0.92
|
%
|
0.82
|
%
|
0.85
|
%
|
0.98
|
%
|
1.11
|
%
|
0.87
|
%
|
1.14
|
%
| ||||||||||||||
Return on average equity
|
10.80
|
%
|
9.54
|
%
|
9.84
|
%
|
11.52
|
%
|
12.79
|
%
|
10.16
|
%
|
12.85
|
%
| ||||||||||||||
Net interest margin (fully taxable equivalent)
|
2.19
|
%
|
1.85
|
%
|
1.85
|
%
|
2.04
|
%
|
2.19
|
%
|
2.02
|
%
|
2.25
|
%
| ||||||||||||||
Efficiency ratio
|
59.64
|
%
|
66.59
|
%
|
62.39
|
%
|
57.93
|
%
|
56.81
|
%
|
62.90
|
%
|
55.70
|
%
| ||||||||||||||
Full-time equivalent employees (period end)
|
315
|
311
|
311
|
318
|
321
|
315
|
321
| |||||||||||||||||||||
ASSET QUALITY
| ||||||||||||||||||||||||||||
Gross charge-offs
|
$
|
60
|
$
|
35
|
$
|
22
|
$
|
22
|
$
|
30
|
$
|
95
|
$
|
80
| ||||||||||||||
Net charge-offs/(recoveries)
|
$
|
(15
|
)
|
$
|
(227
|
)
|
$
|
(107
|
)
|
$
|
(276
|
)
|
$
|
(104
|
)
|
$
|
(242
|
)
|
$
|
(148
|
)
| |||||||
Net charge-offs to average loans (annualized)
|
-0.01
|
%
|
-0.08
|
%
|
-0.04
|
%
|
-0.09
|
%
|
-0.03
|
%
|
-0.04
|
%
|
-0.02
|
%
| ||||||||||||||
Nonperforming loans
|
$
|
90
|
$
|
90
|
$
|
92
|
$
|
420
|
$
|
433
|
$
|
90
|
$
|
433
| ||||||||||||||
Other real estate and repossessed assets
|
$
|
2,343
|
$
|
2,343
|
$
|
2,343
|
$
|
2,343
|
$
|
2,343
|
$
|
2,343
|
$
|
2,343
| ||||||||||||||
Nonperforming loans to total loans
|
0.01
|
%
|
0.01
|
%
|
0.01
|
%
|
0.04
|
%
|
0.03
|
%
|
0.01
|
%
|
0.03
|
%
| ||||||||||||||
Nonperforming assets to total assets
|
0.09
|
%
|
0.08
|
%
|
0.08
|
%
|
0.10
|
%
|
0.09
|
%
|
0.09
|
%
|
0.09
|
%
| ||||||||||||||
Allowance for loan losses
|
$
|
14,631
|
$
|
14,616
|
$
|
15,889
|
$
|
16,532
|
$
|
16,806
|
$
|
14,631
|
$
|
16,806
| ||||||||||||||
Allowance for loan losses to total loans
|
1.32
|
%
|
1.33
|
%
|
1.43
|
%
|
1.45
|
%
|
1.36
|
%
|
1.32
|
%
|
1.36
|
%
| ||||||||||||||
Allowance for loan losses to total loans (excluding PPP loans)
|
1.32
|
%
|
1.34
|
%
|
1.49
|
%
|
1.56
|
%
|
1.57
|
%
|
1.32
|
%
|
1.57
|
%
| ||||||||||||||
Allowance for loan losses to nonperforming loans
|
16256.67
|
%
|
16240.00
|
%
|
17270.65
|
%
|
3936.19
|
%
|
3881.29
|
%
|
16256.67
|
%
|
3881.29
|
%
| ||||||||||||||
CAPITAL
| ||||||||||||||||||||||||||||
Average equity to average assets
|
8.55
|
%
|
8.62
|
%
|
8.66
|
%
|
8.48
|
%
|
8.70
|
%
|
8.59
|
%
|
8.87
|
%
| ||||||||||||||
Common equity tier 1 to risk weighted assets (Consolidated)
|
16.54
|
%
|
16.92
|
%
|
17.24
|
%
|
17.43
|
%
|
17.10
|
%
|
16.54
|
%
|
17.10
|
%
| ||||||||||||||
Tier 1 capital to average assets (Consolidated)
|
9.13
|
%
|
8.82
|
%
|
8.72
|
%
|
8.51
|
%
|
9.48
|
%
|
9.13
|
%
|
9.48
|
%
| ||||||||||||||
Total capital to risk-weighted assets (Consolidated)
|
17.47
|
%
|
17.88
|
%
|
18.32
|
%
|
18.58
|
%
|
19.66
|
%
|
17.47
|
%
|
19.66
|
%
| ||||||||||||||
Common equity tier 1 to risk weighted assets (Bank)
|
16.04
|
%
|
16.39
|
%
|
16.70
|
%
|
16.88
|
%
|
16.57
|
%
|
16.04
|
%
|
16.57
|
%
| ||||||||||||||
Tier 1 capital to average assets (Bank)
|
8.85
|
%
|
8.55
|
%
|
8.44
|
%
|
8.24
|
%
|
8.49
|
%
|
8.85
|
%
|
8.49
|
%
| ||||||||||||||
Total capital to risk-weighted assets (Bank)
|
16.97
|
%
|
17.35
|
%
|
17.77
|
%
|
18.02
|
%
|
17.73
|
%
|
16.97
|
%
|
17.73
|
%
| ||||||||||||||
Common equity to assets
|
8.74
|
%
|
8.38
|
%
|
8.67
|
%
|
8.69
|
%
|
8.44
|
%
|
8.74
|
%
|
8.44
|
%
| ||||||||||||||
Tangible common equity to assets
|
8.74
|
%
|
8.38
|
%
|
8.67
|
%
|
8.69
|
%
|
8.44
|
%
|
8.74
|
%
|
8.44
|
%
| ||||||||||||||
END OF PERIOD BALANCES
| ||||||||||||||||||||||||||||
Total portfolio loans
|
$
|
1,111,915
|
$
|
1,101,902
|
$
|
1,108,993
|
$
|
1,136,613
|
$
|
1,238,327
|
$
|
1,111,915
|
$
|
1,238,327
| ||||||||||||||
Earning assets
|
2,655,706
|
2,802,498
|
2,803,853
|
2,768,507
|
2,803,634
|
2,655,706
|
2,803,634
| |||||||||||||||||||||
Total assets
|
2,781,208
|
2,929,883
|
2,928,751
|
2,901,500
|
2,941,086
|
2,781,208
|
2,941,086
| |||||||||||||||||||||
Deposits
|
2,494,583
|
2,582,297
|
2,577,958
|
2,553,175
|
2,600,076
|
2,494,583
|
2,600,076
| |||||||||||||||||||||
Total shareholders' equity
|
243,109
|
245,602
|
254,005
|
252,213
|
248,217
|
243,109
|
248,217
| |||||||||||||||||||||
AVERAGE BALANCES
| ||||||||||||||||||||||||||||
Total portfolio loans
|
$
|
1,103,955
|
$
|
1,092,673
|
$
|
1,109,863
|
$
|
1,182,633
|
$
|
1,324,915
|
$
|
1,098,346
|
$
|
1,362,946
| ||||||||||||||
Earning assets
|
2,724,714
|
2,788,254
|
2,780,236
|
2,804,157
|
2,669,862
|
2,756,363
|
2,603,948
| |||||||||||||||||||||
Total assets
|
2,847,381
|
2,917,462
|
2,917,569
|
2,948,664
|
2,809,487
|
2,882,228
|
2,738,539
| |||||||||||||||||||||
Deposits
|
2,537,111
|
2,569,315
|
2,564,961
|
2,605,043
|
2,468,398
|
2,553,124
|
2,395,112
| |||||||||||||||||||||
Total shareholders' equity
|
243,352
|
251,600
|
252,606
|
249,994
|
244,516
|
247,453
|
242,779
|
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Disclaimer
Macatawa Bank Corporation published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 20:57:59 UTC.