Attached files
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| 8-K - FORM 8-K - MERCANTILE BANK CORP | mbwm20180416_8k.htm |
Exhibit 99.1
Mercantile Bank Corporation Reports Strong First Quarter 2018 Results
Continued strength in core profitability and loan originations highlight quarter
GRAND RAPIDS, Mich., April 17, 2018 – Mercantile Bank Corporation (NASDAQ: MBWM) ("Mercantile") reported net income of $10.9 million, or $0.66 per diluted share, for the first quarter of 2018, compared with net income of $7.6 million, or $0.46 per diluted share, for the respective prior-year period. The successful collection of certain problem commercial loan relationships during the first quarter of 2018 increased reported net income by approximately $1.7 million, or $0.10 per diluted share, while a bank owned life insurance claim during the first quarter of 2017 increased reported net income by approximately $1.1 million, or $0.06 per diluted share; excluding the impacts of these transactions, diluted earnings per share increased $0.16, or 40.0 percent, during the current-year first quarter compared to the prior-year first quarter.
Net income during the first three months of 2018 also benefited from a reduction in the corporate federal income tax rate, which was lowered from 35 percent to 21 percent on January 1, 2018 as a result of the enactment of the Tax Cuts and Jobs Act. Mercantile’s effective tax rate during the first quarter of 2018 was 19.0 percent, down from 30.7 percent during the prior-year first quarter.
“We are very pleased with our first quarter 2018 financial results, which reflect the continued success of various strategic initiatives,” said Robert B. Kaminski, Jr., President and Chief Executive Officer of Mercantile. “Our strong financial performance reflects a robust net interest margin, controlled overhead costs, and sound asset quality. In light of our current loan pipelines and healthy financial position, we are confident that the strong operating performance achieved during the first three months of the year will continue during future periods.”
First quarter highlights include:
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Strong earnings performance and capital position |
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Robust net interest margin |
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Controlled overhead costs |
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Sound asset quality, as depicted by low levels of nonperforming assets and loans in the 30- to 89-days delinquent category |
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New commercial term loan originations of approximately $111 million |
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Continued strength in commercial and residential loan pipelines |
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Increased cash dividend |
Operating Results
Total revenue, which consists of net interest income and noninterest income, was $34.6 million during the first quarter of 2018, up $3.2 million, or 10.3 percent, from the prior-year first quarter. Net interest income during the first quarter of 2018 was $30.2 million, up $4.7 million, or 18.4 percent, from the first quarter of 2017, reflecting an increased net interest margin and a higher level of earning assets.
The net interest margin was 4.06 percent in the first quarter of 2018, up from 3.73 percent in the prior-year first quarter. The increase primarily resulted from a higher yield on commercial loans, mainly reflecting the positive impact of higher interest rates on variable-rate commercial loans stemming from the Federal Open Market Committee raising the targeted federal funds rate by 25 basis points in March, June, and December of 2017 and March of 2018, and successful collection efforts. The collection of interest on certain nonperforming commercial loans that paid in full positively impacted the yield on earning assets during the first quarter of 2018 by approximately 29 basis points, while a higher-than-desired level of interest-earning deposits negatively impacted the yield by approximately 8 basis points. Excluding the impacts of these factors, the net interest margin equaled approximately 3.85 percent during the first quarter of 2018. The cost of funds equaled 0.64 percent during the first quarter of 2018, up from 0.47 percent during the respective 2017 period, mainly due to increased costs of certain money market deposit accounts, time deposits, and borrowed funds.
Net interest income and the net interest margin during the first quarter of 2018 and the prior-year first quarter were affected by purchase accounting accretion and amortization entries associated with the fair value measurements recorded effective June 1, 2014. Increases in interest income on loans totaling $2.3 million and $0.8 million were recorded during the first quarters of 2018 and 2017, respectively. An increase in interest expense on subordinated debentures totaling $0.2 million was recorded during both the current-year first quarter and prior-year first quarter. Purchased loan accretion amounts vary from period to period as a result of periodic cash flow re-estimations, loan payoffs, and payment performance.
Mercantile recorded no provision expense during the first quarter of 2018, compared to a provision expense of $0.6 million during the respective 2017 period. No provision expense was made during the current-year first quarter in light of net loan recoveries being recorded and the lack of net loan growth. The provision expense recorded during the prior-year first quarter primarily reflected ongoing net loan growth.
Noninterest income during the first quarter of 2018 was $4.4 million, compared to $5.9 million during the prior-year first quarter. Noninterest income during the first quarter of 2017 included a bank owned life insurance claim of $1.4 million. Excluding the impact of this transaction, noninterest income declined $0.1 million during the current-year first quarter compared to the respective 2017 period. The decline in noninterest income primarily reflected a lower level of mortgage banking activity income, which more than offset increased credit and debit card income, service charges on accounts, and payroll processing fees. Mortgage banking activity income during the first three months of 2018 was negatively impacted by a shortage of housing inventory in Mercantile’s markets, most notably in West Michigan, and rising residential mortgage loan interest rates.
Noninterest expense totaled $21.1 million during the first quarter of 2018, up $1.4 million, or 6.9 percent, from the prior-year first quarter. The higher level of expense primarily resulted from increased salary costs, mainly reflecting annual employee merit pay increases, the hiring of additional staff, a larger bonus accrual, and higher stock-based compensation expense. Increased occupancy costs, mainly stemming from expansion initiatives and higher maintenance expenses, also contributed to the increased level of noninterest expense.
Mr. Kaminski continued, “Our core net interest margin remained strong during the first quarter of 2018, reflecting our ongoing focus on margin maintenance through prudent loan pricing and underwriting. Successful collection efforts regarding certain problem commercial loan relationships positively impacted our first quarter net interest margin by approximately 29 basis points, while an elevated level of interest-earning deposit balances negatively impacted our first quarter margin by about 8 basis points, indicating a core margin of 3.85 percent. Our net interest income benefited from the Federal Open Market Committee’s three rate hikes during 2017 and the rate hike in March 2018, and based on our current balance sheet structure, we believe any additional rate increases will further enhance our net interest income. Mortgage banking activity income during the first quarter was hampered by the low level of housing inventory in our markets and the increasing rate environment; however, based on our current pipeline and record level of loan pre-qualifications, we believe that future purchase activity from increased turnover and the addition of new housing stock in our markets will more than offset lower refinance activity stemming from the rising interest rate environment, resulting in mortgage banking activity income growth in future periods.”
Balance Sheet
As of March 31, 2018, total assets were $3.29 billion, up $7.2 million, or 0.2 percent, from December 31, 2017. Interest-earning deposit balances increased $18.9 million, while total loans decreased $7.3 million over the same time period. During the twelve months ended March 31, 2018, total loans were up nearly $110 million, or 4.5 percent. Approximately $111 million in commercial term loans to new and existing borrowers were originated during the first quarter of 2018, as ongoing sales and relationship-building efforts resulted in increased lending opportunities. As of March 31, 2018, unfunded commitments on commercial construction and development loans totaled approximately $133 million, which are expected to be largely funded over the next 12 to 18 months.
Raymond Reitsma, President of Mercantile Bank of Michigan, noted, “We are pleased with the volume of new commercial term loan originations during the first quarter of 2018, which were comparable to the level of quarterly originations over the past several years. The commercial loan portfolio declined slightly during the first quarter, primarily reflecting an abnormally high level of payoffs; approximately $21 million in watch list credits paid off, along with about $21 million in loans in which the borrowers sold the underlying collateral or the businesses. We once again reported growth in our residential mortgage portfolio, reflecting the continuing success of strategic initiatives that were designed to increase our market presence. In light of our current loan pipelines, we believe that the commercial and residential portfolios will expand in future periods.”
As of March 31, 2018, commercial and industrial loans and owner-occupied commercial real estate (“CRE”) loans combined represented approximately 58 percent of total commercial loans, while non-owner occupied CRE loans equaled about 36 percent of total commercial loans.
Total deposits at March 31, 2018 were $2.54 billion, up $17.7 million and $262 million from December 31, 2017 and March 31, 2017, respectively; local deposits were up $17.9 million and $205 million during the respective time periods. The growth in local deposits was mainly driven by new commercial loan relationships and the success of various deposit account initiatives. Wholesale funds were $322 million, or approximately 11 percent of total funds, as of March 31, 2018, compared to $323 million and $250 million as of December 31, 2017 and March 31, 2017, respectively.
Asset Quality
Nonperforming assets at March 31, 2018 were $8.1 million, or 0.3 percent of total assets, compared to $9.4 million, or 0.3 percent of total assets, at December 31, 2017, and $7.8 million, or 0.3 percent of total assets, at March 31, 2017. Bank-owned parcels of real estate, which are no longer being used or being considered for use as bank facilities, represented approximately 26 percent of total nonperforming assets as of March 31, 2018; the parcels of real estate are expected to be sold within the next two quarters. The level of past due loans remains nominal, and loan relationships on the internal watch list have remained relatively consistent in number and dollar volume.
Net loan recoveries were $0.5 million during the first quarter of 2018, or an annualized negative 0.08 percent of average loans, compared with net loan charge-offs of $0.3 million, or an annualized 0.05 percent of average loans, in both the linked quarter and prior-year first quarter.
Capital Position
Shareholders’ equity totaled $368 million as of March 31, 2018, an increase of $2.5 million from year-end 2017. The Bank’s capital position remains above “well-capitalized” with a total risk-based capital ratio of 12.9 percent as of March 31, 2018, compared to 12.6 percent at December 31, 2017. At March 31, 2018, the Bank had approximately $86 million in excess of the 10.0 percent minimum regulatory threshold required to be considered a “well-capitalized” institution. Mercantile reported 16,598,466 total shares outstanding at March 31, 2018.
No shares were repurchased during the first quarter of 2018 as part of the $20 million stock repurchase program that was announced in January of 2015. Future share repurchases totaling $15.5 million can be made under the program, which was expanded by $15 million in early 2016.
Mr. Kaminski concluded, “We are well-positioned to further enrich shareholder value and meet growth goals in light of our ongoing financial strength. Our sustained cash dividend program and associated competitive dividend yield demonstrate our commitment to increasing shareholder value. As reflected by new commercial term loan originations and growth in residential mortgage loans and deposits, our focus on building and developing value-added relationships continues to successfully attract new clients as well as retain existing customers. We are excited about Mercantile’s future and are confident that the strong financial results achieved during the first quarter of 2018 will continue in the current year and beyond.”
About Mercantile Bank Corporation
Based in Grand Rapids, Michigan, Mercantile Bank Corporation is the bank holding company for Mercantile Bank of Michigan. Mercantile provides banking services to businesses, individuals and governmental units, and differentiates itself on the basis of service quality and the expertise of its banking staff. Mercantile has assets of approximately $3.2 billion and operates 47 banking offices. Mercantile Bank Corporation’s common stock is listed on the NASDAQ Global Select Market under the symbol “MBWM.”
Forward-Looking Statements
This news release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Actual results may differ materially from the results expressed in forward-looking statements. Factors that might cause such a difference include changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulation or actions by bank regulators; changes in tax laws; changes in prices, levies, and assessments; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; changes in the national and local economies; and other factors, including risk factors, disclosed from time to time in filings made by Mercantile with the Securities and Exchange Commission. Mercantile undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION:
| Robert B. Kaminski, Jr. | Charles Christmas | |
| President and CEO | Executive Vice President and CFO | |
| 616-726-1502 | 616-726-1202 | |
| rkaminski@mercbank.com | cchristmas@mercbank.com |
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MERCANTILE BANK CORPORATION |
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CONSOLIDATED BALANCE SHEETS |
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(Unaudited) |
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MARCH 31, |
DECEMBER 31, |
MARCH 31, |
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2018 |
2017 |
2017 |
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ASSETS |
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Cash and due from banks |
$ | 47,278,000 | $ | 55,127,000 | $ | 40,313,000 | ||||||
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Interest-earning deposits |
163,879,000 | 144,974,000 | 12,663,000 | |||||||||
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Total cash and cash equivalents |
211,157,000 | 200,101,000 | 52,976,000 | |||||||||
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Securities available for sale |
336,988,000 | 335,744,000 | 332,441,000 | |||||||||
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Federal Home Loan Bank stock |
11,036,000 | 11,036,000 | 9,236,000 | |||||||||
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Loans |
2,551,204,000 | 2,558,552,000 | 2,441,314,000 | |||||||||
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Allowance for loan losses |
(19,974,000 | ) | (19,501,000 | ) | (18,276,000 | ) | ||||||
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Loans, net |
2,531,230,000 | 2,539,051,000 | 2,423,038,000 | |||||||||
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Premises and equipment, net |
46,300,000 | 46,034,000 | 45,848,000 | |||||||||
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Bank owned life insurance |
69,010,000 | 68,689,000 | 66,211,000 | |||||||||
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Goodwill |
49,473,000 | 49,473,000 | 49,473,000 | |||||||||
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Core deposit intangible |
7,044,000 | 7,600,000 | 9,321,000 | |||||||||
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Other assets |
31,662,000 | 28,976,000 | 30,375,000 | |||||||||
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Total assets |
$ | 3,293,900,000 | $ | 3,286,704,000 | $ | 3,018,919,000 | ||||||
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Deposits: |
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Noninterest-bearing |
$ | 830,187,000 | $ | 866,380,000 | $ | 757,706,000 | ||||||
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Interest-bearing |
1,709,866,000 | 1,655,985,000 | 1,520,310,000 | |||||||||
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Total deposits |
2,540,053,000 | 2,522,365,000 | 2,278,016,000 | |||||||||
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Securities sold under agreements to repurchase |
104,894,000 | 118,748,000 | 126,679,000 | |||||||||
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Federal Home Loan Bank advances |
220,000,000 | 220,000,000 | 205,000,000 | |||||||||
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Subordinated debentures |
45,688,000 | 45,517,000 | 45,006,000 | |||||||||
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Accrued interest and other liabilities |
14,925,000 | 14,204,000 | 16,168,000 | |||||||||
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Total liabilities |
2,925,560,000 | 2,920,834,000 | 2,670,869,000 | |||||||||
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SHAREHOLDERS' EQUITY |
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Common stock |
310,601,000 | 309,772,000 | 307,371,000 | |||||||||
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Retained earnings |
68,283,000 | 61,001,000 | 45,596,000 | |||||||||
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Accumulated other comprehensive income/(loss) |
(10,544,000 | ) | (4,903,000 | ) | (4,917,000 | ) | ||||||
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Total shareholders' equity |
368,340,000 | 365,870,000 | 348,050,000 | |||||||||
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Total liabilities and shareholders' equity |
$ | 3,293,900,000 | $ | 3,286,704,000 | $ | 3,018,919,000 | ||||||
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MERCANTILE BANK CORPORATION |
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CONSOLIDATED REPORTS OF INCOME |
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(Unaudited) |
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THREE MONTHS ENDED |
THREE MONTHS ENDED |
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March 31, 2018 |
March 31, 2017 |
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INTEREST INCOME |
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Loans, including fees |
$ | 32,315,000 | $ | 26,733,000 | ||||
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Investment securities |
2,196,000 | 1,828,000 | ||||||
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Other interest-earning assets |
470,000 | 143,000 | ||||||
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Total interest income |
34,981,000 | 28,704,000 | ||||||
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INTEREST EXPENSE |
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Deposits |
3,085,000 | 1,868,000 | ||||||
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Short-term borrowings |
57,000 | 51,000 | ||||||
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Federal Home Loan Bank advances |
945,000 | 655,000 | ||||||
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Other borrowed money |
695,000 | 621,000 | ||||||
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Total interest expense |
4,782,000 | 3,195,000 | ||||||
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Net interest income |
30,199,000 | 25,509,000 | ||||||
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Provision for loan losses |
0 | 600,000 | ||||||
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Net interest income after provision for loan losses |
30,199,000 | 24,909,000 | ||||||
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NONINTEREST INCOME |
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Service charges on accounts |
1,053,000 | 1,018,000 | ||||||
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Credit and debit card income |
1,243,000 | 1,106,000 | ||||||
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Mortgage banking income |
884,000 | 1,123,000 | ||||||
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Earnings on bank owned life insurance |
331,000 | 1,738,000 | ||||||
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Other income |
870,000 | 866,000 | ||||||
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Total noninterest income |
4,381,000 | 5,851,000 | ||||||
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NONINTEREST EXPENSE |
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Salaries and benefits |
12,337,000 | 11,272,000 | ||||||
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Occupancy |
1,772,000 | 1,554,000 | ||||||
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Furniture and equipment |
548,000 | 535,000 | ||||||
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Data processing costs |
2,128,000 | 2,011,000 | ||||||
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Other expense |
4,362,000 | 4,404,000 | ||||||
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Total noninterest expense |
21,147,000 | 19,776,000 | ||||||
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Income before federal income tax expense |
13,433,000 | 10,984,000 | ||||||
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Federal income tax expense |
2,552,000 | 3,369,000 | ||||||
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Net Income |
$ | 10,881,000 | $ | 7,615,000 | ||||
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Basic earnings per share |
$ | 0.66 | $ | 0.46 | ||||
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Diluted earnings per share |
$ | 0.66 | $ | 0.46 | ||||
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Average basic shares outstanding |
16,595,115 | 16,434,647 | ||||||
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Average diluted shares outstanding |
16,604,325 | 16,449,210 | ||||||
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MERCANTILE BANK CORPORATION |
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CONSOLIDATED FINANCIAL HIGHLIGHTS |
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(Unaudited) |
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Quarterly |
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(dollars in thousands except per share data) |
2018 |
2017 |
2017 |
2017 |
2017 |
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1st Qtr |
4th Qtr |
3rd Qtr |
2nd Qtr |
1st Qtr |
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EARNINGS |
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Net interest income |
$ | 30,199 | 28,402 | 28,644 | 27,193 | 25,509 | ||||||||||||||
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Provision for loan losses |
$ | 0 | 600 | 1,000 | 750 | 600 | ||||||||||||||
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Noninterest income |
$ | 4,381 | 4,503 | 4,605 | 4,042 | 5,851 | ||||||||||||||
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Noninterest expense |
$ | 21,147 | 19,848 | 20,210 | 19,882 | 19,776 | ||||||||||||||
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Net income before federal income tax expense |
$ | 13,433 | 12,457 | 12,039 | 10,603 | 10,984 | ||||||||||||||
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Net income |
$ | 10,881 | 7,979 | 8,337 | 7,343 | 7,615 | ||||||||||||||
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Basic earnings per share |
$ | 0.66 | 0.48 | 0.51 | 0.45 | 0.46 | ||||||||||||||
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Diluted earnings per share |
$ | 0.66 | 0.48 | 0.51 | 0.45 | 0.46 | ||||||||||||||
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Average basic shares outstanding |
16,595,115 | 16,525,625 | 16,483,492 | 16,471,060 | 16,434,647 | |||||||||||||||
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Average diluted shares outstanding |
16,604,325 | 16,536,225 | 16,494,540 | 16,485,356 | 16,449,210 | |||||||||||||||
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PERFORMANCE RATIOS |
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Return on average assets |
1.36 | % | 0.97 | % | 1.03 | % | 0.96 | % | 1.02 | % | ||||||||||
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Return on average equity |
12.07 | % | 8.70 | % | 9.21 | % | 8.39 | % | 8.99 | % | ||||||||||
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Net interest margin (fully tax-equivalent) |
4.06 | % | 3.76 | % | 3.83 | % | 3.85 | % | 3.73 | % | ||||||||||
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Efficiency ratio |
61.15 | % | 60.32 | % | 60.78 | % | 63.65 | % | 63.06 | % | ||||||||||
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Full-time equivalent employees |
640 | 641 | 634 | 643 | 617 | |||||||||||||||
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YIELD ON ASSETS / COST OF FUNDS |
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Yield on loans |
5.14 | % | 4.76 | % | 4.81 | % | 4.69 | % | 4.54 | % | ||||||||||
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Yield on securities |
2.61 | % | 2.60 | % | 2.50 | % | 2.44 | % | 2.35 | % | ||||||||||
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Yield on other interest-earning assets |
1.52 | % | 1.29 | % | 1.28 | % | 0.99 | % | 0.81 | % | ||||||||||
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Yield on total earning assets |
4.70 | % | 4.35 | % | 4.41 | % | 4.37 | % | 4.20 | % | ||||||||||
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Yield on total assets |
4.37 | % | 4.04 | % | 4.10 | % | 4.05 | % | 3.88 | % | ||||||||||
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Cost of deposits |
0.50 | % | 0.45 | % | 0.43 | % | 0.35 | % | 0.33 | % | ||||||||||
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Cost of borrowed funds |
1.83 | % | 1.74 | % | 1.75 | % | 1.69 | % | 1.53 | % | ||||||||||
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Cost of interest-bearing liabilities |
0.94 | % | 0.88 | % | 0.85 | % | 0.77 | % | 0.68 | % | ||||||||||
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Cost of funds (total earning assets) |
0.64 | % | 0.59 | % | 0.58 | % | 0.52 | % | 0.47 | % | ||||||||||
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Cost of funds (total assets) |
0.60 | % | 0.55 | % | 0.54 | % | 0.48 | % | 0.43 | % | ||||||||||
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PURCHASE ACCOUNTING ADJUSTMENTS |
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Loan portfolio - increase interest income |
$ | 2,271 | 683 | 1,757 | 1,336 | 832 | ||||||||||||||
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Trust preferred - increase interest expense |
$ | 171 | 171 | 171 | 171 | 171 | ||||||||||||||
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Core deposit intangible - increase overhead |
$ | 556 | 556 | 556 | 609 | 636 | ||||||||||||||
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MORTGAGE BANKING ACTIVITY |
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Total mortgage loans originated |
$ | 40,937 | 62,526 | 61,962 | 60,371 | 38,365 | ||||||||||||||
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Purchase mortgage loans originated |
$ | 25,137 | 33,958 | 41,254 | 39,115 | 21,523 | ||||||||||||||
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Refinance mortgage loans originated |
$ | 15,800 | 28,568 | 20,708 | 21,256 | 16,842 | ||||||||||||||
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Total mortgage loans sold |
$ | 19,813 | 26,254 | 33,858 | 29,371 | 18,463 | ||||||||||||||
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Net gain on sale of mortgage loans |
$ | 729 | 1,051 | 1,131 | 1,012 | 732 | ||||||||||||||
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CAPITAL |
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Tangible equity to tangible assets |
9.63 | % | 9.56 | % | 9.54 | % | 9.70 | % | 9.77 | % | ||||||||||
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Tier 1 leverage capital ratio |
11.50 | % | 11.24 | % | 11.18 | % | 11.49 | % | 11.53 | % | ||||||||||
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Common equity risk-based capital ratio |
11.04 | % | 10.71 | % | 10.54 | % | 10.65 | % | 10.83 | % | ||||||||||
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Tier 1 risk-based capital ratio |
12.52 | % | 12.19 | % | 12.01 | % | 12.15 | % | 12.39 | % | ||||||||||
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Total risk-based capital ratio |
13.20 | % | 12.85 | % | 12.66 | % | 12.79 | % | 13.05 | % | ||||||||||
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Tier 1 capital |
$ | 367,546 | 359,047 | 354,087 | 347,754 | 341,708 | ||||||||||||||
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Tier 1 plus tier 2 capital |
$ | 387,520 | 378,548 | 373,280 | 366,048 | 359,984 | ||||||||||||||
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Total risk-weighted assets |
$ | 2,935,367 | 2,946,527 | 2,949,011 | 2,861,605 | 2,757,616 | ||||||||||||||
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Book value per common share |
$ | 22.19 | 22.05 | 21.99 | 21.69 | 21.13 | ||||||||||||||
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Tangible book value per common share |
$ | 18.79 | 18.61 | 18.49 | 18.16 | 17.56 | ||||||||||||||
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Cash dividend per common share |
$ | 0.22 | 0.19 | 0.19 | 0.18 | 0.18 | ||||||||||||||
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ASSET QUALITY |
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Gross loan charge-offs |
$ | 654 | 920 | 709 | 1,150 | 456 | ||||||||||||||
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Recoveries |
$ | 1,127 | 628 | 607 | 419 | 171 | ||||||||||||||
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Net loan charge-offs (recoveries) |
$ | (473 | ) | 292 | 102 | 731 | 285 | |||||||||||||
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Net loan charge-offs (recoveries) to average loans |
(0.08% | ) | 0.05 | % | 0.02 | % | 0.12 | % | 0.05 | % | ||||||||||
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Allowance for loan losses |
$ | 19,974 | 19,501 | 19,193 | 18,295 | 18,276 | ||||||||||||||
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Allowance to originated loans |
0.87 | % | 0.88 | % | 0.88 | % | 0.86 | % | 0.92 | % | ||||||||||
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Nonperforming loans |
$ | 5,742 | 7,143 | 8,231 | 6,450 | 7,292 | ||||||||||||||
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Other real estate/repossessed assets |
$ | 2,384 | 2,260 | 2,327 | 789 | 495 | ||||||||||||||
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Nonperforming loans to total loans |
0.23 | % | 0.28 | % | 0.32 | % | 0.26 | % | 0.30 | % | ||||||||||
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Nonperforming assets to total assets |
0.25 | % | 0.29 | % | 0.32 | % | 0.23 | % | 0.26 | % | ||||||||||
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NONPERFORMING ASSETS - COMPOSITION |
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|
Residential real estate: |
||||||||||||||||||||
|
Land development |
$ | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
|
Construction |
$ | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
|
Owner occupied / rental |
$ | 3,571 | 3,574 | 3,648 | 3,367 | 2,972 | ||||||||||||||
|
Commercial real estate: |
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|
Land development |
$ | 0 | 35 | 50 | 65 | 80 | ||||||||||||||
|
Construction |
$ | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
|
Owner occupied |
$ | 3,913 | 4,272 | 4,627 | 1,313 | 1,221 | ||||||||||||||
|
Non-owner occupied |
$ | 0 | 36 | 84 | 400 | 421 | ||||||||||||||
|
Non-real estate: |
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|
Commercial assets |
$ | 620 | 1,444 | 2,126 | 2,081 | 3,076 | ||||||||||||||
|
Consumer assets |
$ | 22 | 42 | 23 | 13 | 17 | ||||||||||||||
|
Total nonperforming assets |
$ | 8,126 | 9,403 | 10,558 | 7,239 | 7,787 | ||||||||||||||
|
NONPERFORMING ASSETS - RECON |
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|
Beginning balance |
$ | 9,403 | 10,558 | 7,239 | 7,787 | 6,408 | ||||||||||||||
|
Additions - originated loans & former branches |
$ | 1,426 | 402 | 4,789 | 1,774 | 2,987 | ||||||||||||||
|
Merger-related activity |
$ | 29 | 0 | 210 | 16 | 0 | ||||||||||||||
|
Return to performing status |
$ | (175 | ) | 0 | (120 | ) | 0 | (113 | ) | |||||||||||
|
Principal payments |
$ | (1,557 | ) | (688 | ) | (1,089 | ) | (1,168 | ) | (1,289 | ) | |||||||||
|
Sale proceeds |
$ | (299 | ) | (101 | ) | (373 | ) | (147 | ) | (56 | ) | |||||||||
|
Loan charge-offs |
$ | (597 | ) | (754 | ) | (91 | ) | (953 | ) | (135 | ) | |||||||||
|
Valuation write-downs |
$ | (104 | ) | (14 | ) | (7 | ) | (70 | ) | (15 | ) | |||||||||
|
Ending balance |
$ | 8,126 | 9,403 | 10,558 | 7,239 | 7,787 | ||||||||||||||
|
LOAN PORTFOLIO COMPOSITION |
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|
Commercial: |
||||||||||||||||||||
|
Commercial & industrial |
$ | 739,805 | 753,764 | 776,562 | 780,816 | 757,219 | ||||||||||||||
|
Land development & construction |
$ | 31,437 | 29,872 | 28,575 | 29,027 | 31,924 | ||||||||||||||
|
Owner occupied comm'l R/E |
$ | 531,152 | 526,327 | 485,347 | 491,633 | 452,382 | ||||||||||||||
|
Non-owner occupied comm'l R/E |
$ | 794,206 | 791,685 | 805,167 | 783,036 | 768,565 | ||||||||||||||
|
Multi-family & residential rental |
$ | 96,428 | 101,918 | 119,170 | 114,081 | 113,257 | ||||||||||||||
|
Total commercial |
$ | 2,193,028 | 2,203,566 | 2,214,821 | 2,198,593 | 2,123,347 | ||||||||||||||
|
Retail: |
||||||||||||||||||||
|
1-4 family mortgages |
$ | 264,996 | 254,560 | 236,075 | 220,697 | 205,850 | ||||||||||||||
|
Home equity & other consumer |
$ | 93,180 | 100,426 | 103,376 | 107,991 | 112,117 | ||||||||||||||
|
Total retail |
$ | 358,176 | 354,986 | 339,451 | 328,688 | 317,967 | ||||||||||||||
|
Total loans |
$ | 2,551,204 | 2,558,552 | 2,554,272 | 2,527,281 | 2,441,314 | ||||||||||||||
|
END OF PERIOD BALANCES |
||||||||||||||||||||
|
Loans |
$ | 2,551,204 | 2,558,552 | 2,554,272 | 2,527,281 | 2,441,314 | ||||||||||||||
|
Securities |
$ | 348,024 | 346,780 | 341,126 | 333,294 | 341,677 | ||||||||||||||
|
Other interest-earning assets |
$ | 163,879 | 144,974 | 123,110 | 48,762 | 12,663 | ||||||||||||||
|
Total earning assets (before allowance) |
$ | 3,063,107 | 3,050,306 | 3,018,508 | 2,909,337 | 2,795,654 | ||||||||||||||
|
Total assets |
$ | 3,293,900 | 3,286,704 | 3,254,655 | 3,143,336 | 3,018,919 | ||||||||||||||
|
Noninterest-bearing deposits |
$ | 830,187 | 866,380 | 826,038 | 800,718 | 757,706 | ||||||||||||||
|
Interest-bearing deposits |
$ | 1,709,866 | 1,655,985 | 1,663,005 | 1,570,003 | 1,520,310 | ||||||||||||||
|
Total deposits |
$ | 2,540,053 | 2,522,365 | 2,489,043 | 2,370,721 | 2,278,016 | ||||||||||||||
|
Total borrowed funds |
$ | 373,824 | 387,468 | 390,868 | 404,370 | 380,009 | ||||||||||||||
|
Total interest-bearing liabilities |
$ | 2,083,690 | 2,043,453 | 2,053,873 | 1,974,373 | 1,900,319 | ||||||||||||||
|
Shareholders' equity |
$ | 368,340 | 365,870 | 362,546 | 357,499 | 348,050 | ||||||||||||||
|
AVERAGE BALANCES |
||||||||||||||||||||
|
Loans |
$ | 2,552,070 | 2,534,729 | 2,534,364 | 2,472,489 | 2,390,030 | ||||||||||||||
|
Securities |
$ | 348,431 | 346,318 | 339,125 | 338,045 | 339,537 | ||||||||||||||
|
Other interest-earning assets |
$ | 123,633 | 138,095 | 116,851 | 46,250 | 61,376 | ||||||||||||||
|
Total earning assets (before allowance) |
$ | 3,024,134 | 3,019,142 | 2,990,340 | 2,856,784 | 2,790,943 | ||||||||||||||
|
Total assets |
$ | 3,249,794 | 3,248,828 | 3,220,053 | 3,081,542 | 3,016,871 | ||||||||||||||
|
Noninterest-bearing deposits |
$ | 805,214 | 849,751 | 805,650 | 785,705 | 766,031 | ||||||||||||||
|
Interest-bearing deposits |
$ | 1,690,135 | 1,635,727 | 1,648,235 | 1,531,399 | 1,542,078 | ||||||||||||||
|
Total deposits |
$ | 2,495,349 | 2,485,478 | 2,453,885 | 2,317,104 | 2,308,109 | ||||||||||||||
|
Total borrowed funds |
$ | 376,890 | 384,168 | 393,910 | 400,508 | 352,614 | ||||||||||||||
|
Total interest-bearing liabilities |
$ | 2,067,025 | 2,019,895 | 2,042,145 | 1,931,907 | 1,894,692 | ||||||||||||||
|
Shareholders' equity |
$ | 365,521 | 363,823 | 359,131 | 351,216 | 343,344 |