Madison County Financial : 4th Quarter 2023 Report

Madison County Financial, Inc.

Reports 2023 and 2022 Financial Results

MADISON, Nebraska, March 1, 2024. Madison County Financial, Inc. (OTC Pink: MCBK) ("Company"), the parent holding company of Madison County Bank ("Bank"), today announced its results of operations for the three months and years ended December 31, 2023 and 2022.

The Company's net income for the three months ended December 31, 2023 was $1.4 million or $0.55 per diluted share, compared to net income of $1.2 million or $0.47 per diluted share for the same period in 2022. The Company's net income for the year ended December 31, 2023 was $3.2 million or $1.24 per diluted share, compared to net income of $7.7 million or $2.91 per diluted share for the same period in 2022.

Total assets increased $13.4 million to $609.7 million at December 31, 2023, compared to $596.3 million at December 31, 2022, resulting from increases in investment securities classified as available for sale, net loans, Federal Home Loan Bank stock and interest receivable, offset in part by a decrease in cash and cash equivalents and investment securities classified as held to maturity. Federal Reserve Bank stock and Federal Home Loan Bank stock are required investments for institutions that are members of the Federal Reserve Bank and Federal Home Loan Bank systems. The required investment in the common stock is based on a predetermined formula, carried at cost and evaluated for impairment.

As of December 31, 2023, there were 2,709,859 issued and outstanding shares of common stock, par value $0.01 per share, and at February 29, 2024, there were 2,738,437 issued and outstanding shares of common stock. The Bank was considered well-capitalized under applicable federal regulatory capital guidelines at December 31, 2023.

This release may contain forward-looking statements within the meaning of the federal securities laws. These statements are not historical facts; rather, they are statements based on the Company's current expectations regarding its business strategies and their intended results and its future performance. Forward-looking statements are preceded by terms such as "expects", "believes", "anticipates", "intends" and similar expressions.

Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties could cause or contribute to the Company's actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government, legislative and regulatory changes.

Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this report or made elsewhere from time to time by the Company or on its behalf. Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.

MADISON COUNTY FINANCIAL, INC. CONSOLIDATD FINANCIAL HIGHLIGHTS (Dollars in Thousands, Except Per Share Data)

		Three Months Ended December 31,		Years Ended December 31,
		2023			2022		2023			2022
		(Unaudited)			(Unaudited)
Operating Data:
Total interest income	$	6,509	$		5,891	$	24,936	$		20,171
Total interest expense		4,086			2,595		15,098			6,170
Net interest income		2,423			3,296		9,838			14,001
Credit for credit losses ( 1)		94			-		57			(2,625)
Net interest income after provision for credit losses		2,329			3,296		9,781			16,626
Total non-interest income		1,394			732		3,083			2,781
Total non-interest expense		2,243			2,601		9,678			10,448
Income before income taxes		1,480			1,427		3,186			8,959
Income tax expense/benefit		58			185		(40)			1,260
Net income	$	1,422	$		1,242	$	3,226	$		7,699
Per Share Information:
Net income per share, basic	$	0.56	$		0.49	$	1.27	$		3.03
Average common shares outstanding, basic		2,553,883			2,530,118		2,544,416			2,540,526
Net income per share, diluted	$	0.55	$		0.47	$	1.24	$		2.91
Average common shares outstanding, diluted		2,575,715			2,619,097		2,592,024			2,649,330
Basic tangible book value per share	$	33.50	$		33.22	$	33.50	$		33.22
Performance ratios (annualized for 3 month and 12 month periods):
Return on average assets		0.95%			0.82%		0.54%			1.31%
Return on average equity		6.21%			5.49%		3.56%			8.67%
Efficiency ratio		58.76%			64.57%		74.90%			62.26%
Interest rate spread		1.00%			1.82%		1.07%			2.20%
Net interest margin		1.70%			2.27%		1.73%			2.49%

( 1)

As a result of the adoption of CECL on January 1, 2023, the provision for credit losses calculated prior to that date was determined using the previously applied incurred loss methodology rather than the current expected credit losses methodology, and as a result the amounts are not directly comparable.

MADISON COUNTY FINANCIAL, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS (Dollars in Thousands, Except Per Share Data)

		December 31,		December 31,
		2023		2022
		(Unaudited)
Financial Condition Data:
Total assets	$	609,711	$	596,270
Securities, including FHLB and FRB Stock		121,685		117,827
Loans receivable, net of allowance for credit
losses on loans of $6,380 and $6,405, respective (1)		450,610		424,328
Deposits		437,795		485,249
Borrowings		72,271		13,200
Total liabilities		517,271		505,480
Stockholders' equity		92,440		90,790
Balance Sheet Ratios:
Securities, including FHLB and FRB Stock, as a percent of total assets		19.96%		19.76%
Tangible common equity as a percent of tangible assets		14.93%		14.98%
Asset Quality Data:
Nonaccrual loans		820	$	652
Loans over 89 days and still accruing		-		-
Asset Quality Ratios:
Nonperforming assets as a percent of total assets		0.13%		0.11%
Nonperforming loans as a percent of total assets		0.13%		0.11%
Nonperforming loans as a percent of total loans		0.18%		0.15%
Net chargeoffs as a percent of average loans		0.00%		0.00%
Allowance for credit losses on loans as a percent of total loans		1.40%		1.49%
Allowance for credit losses on loans as a percent of nonperforming loans	778.05%		982.36%
Regulatory Capital ratios (Bank only):
Total capital (to risk-weighted assets)		18.64%		19.15%
Tier 1 capital (to risk-weighted assets)		17.39%		17.90%
Tier 1 capital (to average assets)		14.17%		13.81%
Common Equity Tier 1 capital		17.39%		17.90%

1. As a result of the adoption of CECL on January 1, 2023, the provision for credit losses calculated prior to that date was determined using the previously applied incurred loss methodology rather than the current expected credit losses methodology, and as a result the amounts are not directly comparable.
   SOURCE: Madison County Financial, Inc.