Marquette National : Consolidated Financial Statements June 30, 2022

Marquette National Corporation and Subsidiaries

Consolidated Financial Statements

(Unaudited)

June 30, 2022

Marquette National Corporation and Subsidiaries

Financial Highlights

(Unaudited)

(in thousands, except share and per share data)

Balance Sheet

			Percent
	6/30/22	12/31/21	Change
Total assets	$2,083,604	$2,094,420	-1%
Total loans, net	1,307,592	1,263,731	3%
Total deposits	1,765,290	1,739,144	2%
Total stockholders' equity	147,919	185,397	-20%
Shares outstanding	4,363,674	4,373,071	0%
Book value per share	$33.90	$42.40	-20%
Tangible book value per share	$25.80	$34.31	-25%

Operating Results

	Six Months Ended June 30,	Percent
	2022	2021	Change
Net interest income	$27,778	$26,215	6%
Provision for loan losses	1,185	733	62%
Realized securities gains, net	2,722	2,089	30%
Unrealized holding gains (losses) on equity securities and ETFs	(22,631)	3,578	*
Other income	7,737	9,241	-16%
Other expense	27,281	27,359	0%
Income tax expense (benefit)	(4,265)	3,173	*
Net income (loss)	(8,595)	9,858	*
Basic earnings (loss) per share	($1.97)	$2.24	*
Weighted average shares outstanding	4,372,628	4,398,493	*
Cash dividends declared per share	$0.56	$0.54	4%
Comprehensive income (loss)	($34,688)	$6,659	*

* Not meaningful

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Marquette National Corporation and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

(in thousands, except share data)

		6/30/22			12/31/21
Assets
Cash and due from banks	$	44,096	$	38,255
Interest-bearing deposits with banks		63,304			77,130
Total cash and cash equivalents		107,400			115,385
Debt securities available for sale, at fair value		459,054			490,214
Equity securities and exchange traded funds, at fair value		45,808			68,662
Federal Home Loan Bank and Federal Reserve Bank stock, at cost		7,154			6,717
Loans held for sale		1,767			4,985
Loans		1,322,589			1,278,174
Less: Allowance for loan losses		(14,997)			(14,443)
Loans, net		1,307,592			1,263,731
Premises and equipment, net		49,440			50,022
Bank owned life insurance		48,466			47,754
Goodwill		35,348			35,348
Other real estate owned		1,199			1,000
Accrued interest receivable and other assets		20,376			10,602
Total assets	$	2,083,604	$	2,094,420
Liabilities
Deposits
Noninterest-bearing	$	374,199	$	381,520
Interest-bearing		1,391,091			1,357,624
Total deposits		1,765,290			1,739,144
Securities sold under agreements to repurchase		98,630			88,444
Junior subordinated notes issued to capital trusts		56,702			56,702
Accrued interest payable and other liabilities		15,063			24,733
Total liabilities		1,935,685			1,909,023
Stockholders' Equity
Preferred stock: $.01 par value; shares authorized: 150,000
at June 30, 2022 and December 31, 2021; shares issued: none at
June 30, 2022 and December 31, 2021		-			-
Common stock: $.01 par value; shares authorized: 6,000,000 at
June 30, 2022 and December 31, 2021; shares issued: 4,363,674 at
June 30, 2022 and 4,373,071 at December 31, 2021		44			44
Surplus		37,867			37,630
Retained earnings		139,878			151,500
Deferred compensation		1,091			1,356
Accumulated other comprehensive loss, net of tax		(29,870)			(3,777)
Less: Treasury stock, at cost, 34,486 shares in 2022 and 48,933 shares in 2021		(1,091)			(1,356)
Total stockholders' equity		147,919			185,397
Total liabilities and stockholders' equity	$	2,083,604	$	2,094,420

See accompanying notes to unaudited consolidated financial statements.

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Marquette National Corporation and Subsidiaries

Consolidated Statements of Income

(Unaudited)

(in thousands, except share and per share data)

			Six Months Ended June 30,
Interest and Dividend Income			2022			2021
Loans, including fees:
Taxable	$	24,903	$	24,497
Exempt from federal income tax			7			12
Securities available for sale:
Taxable			3,115			2,469
Exempt from Federal income tax			405			404
Dividends			430			291
Federal Home Loan Bank and Federal Reserve Bank stock			126			122
Federal funds sold and interest-bearing deposits with banks			251			55
Total interest income and dividends			29,237			27,850
Interest Expense
Deposits			659			1,039
Securities sold under agreements to repurchase			215			145
Subordinated notes issued to capital trusts			585			451
Total interest expense			1,459			1,635
Net interest income			27,778			26,215
Provision for loan losses			1,185			733
Net interest income after provision for loan losses			26,593			25,482
Other Income
Service charges on deposit accounts			2,295			1,968
Income from trust services			1,020			999
Mortgage banking revenue, net			756			2,525
Wealth management product fees			811			857
Income from bank owned life insurance			711			692
Other operating income			2,144			2,200
Realized securities gains, net			2,722			2,089
Unrealized holding gains (losses) on equity securities and exchange traded funds			(22,631)			3,578
Total other income (loss)			(12,172)			14,908
Other Expense
Salaries and employee benefits			13,868			13,814
Net occupancy expense			3,883			3,954
Equipment expense			665			677
Other real estate owned expense, net			1			(19)
Data processing expense			2,286			2,266
Professional and legal services			1,167			1,420
Advertising and promotion expenses			499			500
FDIC insurance premiums			589			524
Other operating expenses			4,323			4,223
Total other expense			27,281			27,359
Income (loss) before income taxes			(12,860)			13,031
Income tax expense (benefit)			(4,265)			3,173
Net income (loss)		$	(8,595)		$	9,858
Basic earnings (loss) per share	$	(1.97)	$	2.24
Weighted average shares outstanding	4,372,628	4,398,493

See accompanying notes to unaudited consolidated financial statements.

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Marquette National Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

(in thousands)

		Six Months Ended June 30,
		2022			2021
Net income (loss)	$	(8,595)	$	9,858
Other comprehensive income (loss):
Unrealized holding losses on debt securities arising during the period		(36,499)			(4,475)
Related tax benefit		10,406			1,276
Unrealized losses on debt securities, net of tax		(26,093)			(5,070)
Reclassification adjustment for realized debt securities net (loss) during the period		-			-
Related tax benefit		-			-
Net after tax reclassification adjustment		-			-
Other comprehensive loss, net of tax		(26,093)			(3,199)
Comprehensive income (loss)	$	(34,688)	$	6,659

See accompanying notes to unaudited consolidated financial statements.

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