EX-99.1 2 mcbcex991_042910.htm MACATAWA BANK CORPORATION EXHIBIT 99.1 TO FORM 8-K Macatawa Bank Exhibit 99.1 to Form 8-K - 04/29/10

EXHIBIT 99.1

 

10753 Macatawa Drive
Holland, MI 49424


NEWS RELEASE

NASDAQ STOCK MARKET:

MCBC

FOR RELEASE:

Immediate

DATE:

April 29, 2010



Macatawa Bank Corporation Reports First Quarter Results

Holland, Michigan, April 29, 2010 - Macatawa Bank Corporation (Nasdaq: MCBC) today announced its results for the first quarter 2010. The Company's results for the quarter included:

 

Net loss of $21.1 million, driven by elevated levels of loan loss provisions and costs to administer nonperforming assets

 

Continued building of loan loss reserves - allowance for loan loss coverage increased to 4.23 percent of total loans and 59.3 percent of non-performing loans

 

Fifth consecutive quarter of improvement in net interest margin - now at 3.22 percent, highest level since the second quarter of 2007

 

Remained "adequately capitalized" under regulatory capital requirements

 

Further execution of initiatives to right-size the Bank and preserve capital, including asset, wholesale funding and controllable cost reductions

 

Implemented plans to strengthen loan administration and meet conditions of the previously announced Regulatory Consent Order

 

Deposit accounts remain insured by the FDIC up to the maximum amount permitted by law

The Company reported a net loss available to common shares of $21.1 million, or $1.19 per diluted share, for the first quarter 2010, compared to a net loss of $9.2 million, or $0.52 per diluted share, for the fourth quarter 2009. On a consecutive quarter basis, the net loss was relatively flat compared with the 2009 fourth quarter, excluding the $11.4 million one-time federal income tax benefit included in the fourth quarter results. Net loss for the first quarter 2009 was $5.1 million, or $0.30 per diluted share.

"This was a contrasting quarter as we grew our net interest margin, but also realized continued losses in our real estate loan portfolios. As in previous quarters, most of these losses came from the declines in value of real estate that is securing many of the Bank's problem credits. Significant write-downs in the valuation of these problem assets, along with what we believe to be improving real estate markets, give us the opportunity to accelerate the disposition of these assets. Moving these assets out of the Bank remains one of our top priorities. Despite another difficult quarter, we are seeing signs of improvement in the real estate markets. Real estate valuations in our markets are showing signs of stabilization, and purchase activity is increasing. We are more encouraged than at any point during this economic cycle based on the increasing interest from potential investors in real estate projects." said Ronald L. Haan, CEO of Macatawa Bank Corporation. The Bank sold nearly $6.0 million in its other real estate owned portfolio during the first quarter 2010 compared to $7.5 million for all of 2009.

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Macatawa Bank Corporation 1Q Results / page 2 of 5

As reported in a press release issued on February 24, 2010 and more fully discussed in the Company's Form 10-K filing for 2009, Macatawa Bank entered into a Consent Order with its banking regulators to strengthen operations, primarily in its loan administration activities, and improve its capital position. Under the leadership of Board Chairman Richard L. Postma, the Board of Directors continued to implement improved business and banking principles during the quarter. Experienced personnel were added to the Bank's risk management functions, including individuals in its Special Asset and Loan Review departments. New and more disciplined lending and loan risk management policies and new procedures for loan administration and loan review were implemented during the quarter. The Bank also continued to make progress during the quarter at accelerating workout strategies with its more stressed loan customers and completing its independent review of all commercial credits.

In addition to its focus on improving asset quality, the Company continues to implement strategic initiatives to improve its core operating performance. "Our quarterly net interest margin is at its strongest level and our quarterly controllable overhead costs are at their lowest level in over two years. We have also reduced out of market funding in our Balance Sheet by nearly $200 million as we continue to right-size our franchise," commented Haan. "Even though the operating environment for banking is far from normal, conditions appear to be more stable than they were in 2008 and 2009. We are establishing appropriate resources and creating a well disciplined banking culture to prepare us for better performance in the future."

Operating Results

Net interest income for the first quarter 2010 totaled $13.0 million, a decrease of $378,000 from the fourth quarter of 2009 and an increase of $232,000 from the first quarter of 2009. The net interest margin increased to 3.22 percent, up 18 basis points from 3.04 percent on a consecutive quarter basis and up 56 basis points from 2.66 percent in the first quarter 2009; representing a $9.2 million annualized increase in net interest income for the first quarter of 2010.

"Net interest margin continues to improve and is now at the highest level it has been in nearly three years," said Haan. "Our success in managing our interest rate risk has been overshadowed by the financial impact of our loan losses, but we remain focused on managing key metrics such as these in an effort to strengthen Macatawa over the long term."

Average earning assets for the first quarter 2010 declined $120.1 million from the fourth quarter 2009 and $310.2 million from the first quarter 2009, having a downward impact on net interest income. The decline in assets continues to reflect the Bank's focus on liquidity improvement, capital preservation and a reduction in credit exposure within certain segments.

Non-interest income of $3.5 million for the first quarter 2010 was relatively flat on a consecutive quarter basis and down from $5.3 million for the first quarter 2009. The decrease was primarily from a reduction of $1.4 million in mortgage banking revenue. Mortgage loan sales volumes have decreased significantly from levels in the first quarter of 2009 when mortgage refinancing activity was strong as a result of lower interest rates.

Non-interest expense was $17.9 million for the first quarter 2010 compared to $15.9 million for the fourth quarter of 2009 and $14.5 million for the first quarter 2009. Costs associated with the administration and disposition of problem loans and non-performing assets were $5.5 million in the current quarter compared to $3.3 million in the fourth quarter 2009 and $2.2 million in the first quarter 2009. FDIC insurance assessments increased to $1.3 million in the current quarter compared to $1.0 million in the fourth quarter 2009 and $771,000 in the first quarter 2009, as a result of higher assessment rates implemented by the

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Macatawa Bank Corporation 1Q Results / page 3 of 5

FDIC. When excluding nonperforming asset costs and FDIC assessments, non-interest expense was $11.1 million for the quarter, down from $11.3 million in the fourth quarter 2009 and $11.6 million in the first quarter 2009. Salaries and employee benefits were down $693,000 compared to the prior year quarter, as a result of a reduction in overall staffing levels consistent with the Company right-sizing its operations to respond to the impact of the prolonged economic weakness.

Asset Quality

The provision for loan losses of $19.7 million for the first quarter 2010 was down $1.9 million on a consecutive quarter basis and up $9.2 million from $10.5 million in the first quarter 2009. Net charge-offs were $13.6 million compared to $15.0 million for the fourth quarter 2009 and $9.7 million for the first quarter 2009. During the fourth quarter 2009 and into 2010, the Company continued to complete a full independent re-evaluation of its loan portfolio at the direction of the Board of Directors. The elevated levels of provisions for loan losses and net charge-offs in the past two quarters reflect these efforts.

The amount of provision for loan losses in excess of net charge-offs increased the coverage of the allowance as a percent of total loans. The loan loss reserve of $60.8 million was 4.23 percent of total loans at March 31, 2010 compared with 3.62 percent at year end 2009 and 2.30 percent at March 31, 2009. The loan loss reserve also increased to 59.3 percent of non-performing loans at March 31, 2010 compared to 52.6 percent at year end 2009 and 34.4 percent at March 31, 2009.

At March 31, 2010, the Company's non-performing loans were $102.5 million or 7.13 percent of total loans compared to $103.9 million or 6.88% at December 31, 2009.

"We continue to build our loan loss reserves. Until we experience more significant reductions in our charge-off and non-performing loan levels, our approach to loan loss reserves will be cautious as we remain focused on reflecting the values of these assets at appropriate levels, and moving the non-performing assets out of the Bank," said Haan. A further break-down of non-performing loans is shown in the table below.

Dollars in 000s

March 31,
2010


 

December 31,
2009


 

September 30,
2009


 

June 30,
2009


 

March 31,
2009


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Commercial Real Estate

$

81,669

 

$

87,321

 

$

77,461

 

$

87,337

 

$

100,064

Commercial and Industrial

 


17,782


 

 


12,713


 

 


8,477


 

 


5,657


 

 


9,462


     Total Commercial Loans

 

99,451

 

 

100,034

 

 

85,938

 

 

92,994

 

 

109,526

Residential Mortgage Loans

 

1,849

 

 

2,719

 

 

917

 

 

1,702

 

 

3,071

Consumer Loans

 


1,248


 

 


1,132


 

 


1,305


 

 


1,468


 

 


1,010


     Total Non-Performing Loans

$


102,548


 

$


103,885


 

$


88,160


 

$


96,164


 

$


113,607


Residential Developer Loans (a)

$


36,594


 

$


50,002


 

$


43,989


 

$


52,403


 

$


61,840



 

(a)

Represents the amount of loans to residential developers secured by single family residential property which is included in non-performing commercial loans secured by real estate

Total non-performing assets were $148.4 million, or 8.64 percent of total assets, at March 31, 2010. A break-down of non-performing assets is shown in the table below.

Dollars in 000s

March 31,
2010


 

December 31,
2009


 

September 30,
2009


 

June 30,
2009


 

March 31,
2009


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Performing Loans

$

102,548

 

$

103,885

 

$

88,160

 

$

96,164

 

$

113,607

Other Repossessed Assets

 

84

 

 

124

 

 

224

 

 

339

 

 

564

Other Real Estate Owned

 


45,790


 

 


37,184


 

 


33,419


 

 


23,516


 

 


18,510


     Total Non-Performing Assets

$


148,422


 

$


141,193


 

$


121,803


 

$


120,019


 

$


132,681





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Macatawa Bank Corporation 1Q Results / page 4 of 5

Balance Sheet, Liquidity and Capital

Total assets were $1.72 billion at March 31, 2010, a decrease of $111.7 million from $1.83 billion at December 31, 2009. Total loans were $1.44 billion at March 31, 2010, down $72.7 million from $1.51 billion at December 31, 2009.

Commercial loans decreased by $59.5 million representing the majority of the decline since December 31, 2009. The commercial real estate portfolio declined by $34.3 million due to continued effort to reduce exposure in these segments. Commercial and industrial loans declined by $25.2 million due to a general decline in business activity.

Of the decline in commercial real estate, $22.6 million was from loans to residential developers, the portfolio that has caused the majority of stress within the Company's loan portfolio.

The composition of the commercial loan portfolio is shown in the table below:

Dollars in 000s

March 31,
2010


 

December 31,
2009


 

September 30,
2009


 

June 30,
2009


 

March 31,
2009


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and development

$

156,867

 

$

162,615

 

$

195,712

 

$

211,247

 

$

228,499

Other commercial real estate

 


611,904


 

 


640,437


 

 


638,952


 

 


653,058


 

 


688,068


     Commercial Loans Secured
     by Real Estate

 


768,771

 

 


803,052

 

 


834,664

 

 


864,305

 

 


916,567

Commercial and Industrial

 


344,294


 

 


369,523


 

 


375,636


 

 


404,660


 

 


415,635


     Total Commercial Loans

$


1,113,065


 

$


1,172,575


 

$


1,210,300


 

$


1,268,965


 

$


1,332,202


Residential Developer Loans (a)

$


130,727


 

$


153,327


 

$


164,852


 

$


178,319


 

$


196,919



 

(a)

Represents the amount of loans to residential developers secured by single family residential property which is included in commercial loans secured by real estate

The reduction in loans since year end 2009 allowed the Company to reduce wholesale funding, including out-of-market deposits from brokers by $42.1 million and other borrowed funds by $46.0 million. Total deposits were $1.37 billion at March 31, 2010, down $45.6 million from $1.42 billion at December 31, 2009, primarily from the decline in brokered deposits. Of the Company's remaining in-market deposits, a decline of $16.4 million in institutional money market accounts related to planned distributions was offset by solid growth in local checking, savings and certificate of deposit balances. Customer deposit accounts remain fully insured to the highest levels available under the FDIC insurance programs. "The recent extension of the FDIC's Transaction Account Guarantee (TAG) program to protect larger deposits is another positive for our customers and, along with our internal operating initiatives, further solidifies our financial position," said Haan.

Two of the three regulatory capital ratios for Macatawa Bank, including the tier one risk-based capital ratio and the tier one leverage capital ratio, were maintained at levels in excess of those required for "well capitalized" institutions under regulatory capital guidelines. Despite these ratios, the Bank was categorized as "adequately capitalized" as its total risk-based capital ratio of 8.14 percent was below the 10.0 percent minimum for "well capitalized" status. In addition, because the Bank is subject to the Consent Order, the Bank cannot be categorized as "well capitalized" regardless of actual capital levels.

"As we have stated previously, although improvement in our operating results may be uneven during 2010, we continue to expect the overall trend to be positive," Haan said. "The Board of Directors, management team, and employees are determined to restore Macatawa Bank to profitability."

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Macatawa Bank Corporation 1Q Results / page 5 of 5

About Macatawa Bank

Headquartered in Holland, Michigan, Macatawa Bank Corporation is the parent company for Macatawa Bank. Through its banking subsidiary, the Company offers a full range of banking, investment and trust services to individuals, businesses, and governmental entities from a network of 26 full service branches located in communities in Kent County, Ottawa County, and northern Allegan County. Services include commercial, consumer and real estate financing; business and personal deposit services, ATM's and Internet banking services, trust and employee benefit plan services, and various investment services. The Company emphasizes its local management team and decision making, along with providing customers excellent service and superior financial products.

"CAUTIONARY STATEMENT: This press release contains forward-looking statements that are based on management's current beliefs, expectations, assumptions, estimates, projections, plans and intentions. 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 real estate valuation, improvements in the real estate markets, future levels of non-performing loans, the rate of asset dispositions, adequacy of our capital, capital raising activities, dividends, future growth and funding sources, future liquidity levels, future profitability levels, the effects on earnings of changes in interest rates and the future level of other revenue sources. Management's determination of the provision and allowance for loan losses, the appropriate carrying value of intangible assets (including goodwill, mortgage servicing rights and deferred tax assets) 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. All of the information concerning interest rate sensitivity is forward-looking. Our ability to fully comply with our Consent Order, improve regulatory capital ratios, successfully implement new programs and initiatives, increase efficiencies, address regulatory issues, improve internal controls over financial reporting, maintain our current level of deposits and other sources of funding, maintain liquidity, respond to declines in collateral values and credit quality, continue as a going concern and improve profitability is not entirely within our control and is not assured. The future effect of changes in the real estate, financial and credit markets and the national and regional economy on the banking industry, generally, and Macatawa Bank Corporation, specifically, are also inherently uncertain. Failure to comply with the agreements in our Consent Order could result in further regulatory action which could have a material adverse effect on Macatawa Bank Corporation and its shareholders. 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, extend, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in 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.

Risk factors include, but are not limited to, the risk factors described in "Item 1A - Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2009, and our Form 10-Q Quarterly Report for the quarter ended March 31, 2010; the timing and level of asset growth; changes in market interest rates, changes in FDIC assessment rates, changes in banking laws and regulations; changes in tax laws; changes in prices, levies and assessments; the impact of technological advances and issues; the impact of possible future litigation; governmental and regulatory policy changes; changes in the quality and composition of our loan portfolio; changes in value and credit quality of investment securities; the local and global effects of current and future military actions; and current uncertainties and fluctuations in the financial markets and stocks of financial services providers due to concerns about credit availability and concerns about the Michigan economy in particular. These and other factors are representative of the risk factors that may emerge and could cause a difference between an ultimate actual outcome and a preceding forward-looking statement.






MACATAWA BANK CORPORATION
CONSOLIDATED FINANCIAL SUMMARY

(Unaudited)

(Dollars in thousands except per share information)

 

Quarter Ended
March 31


 

EARNINGS SUMMARY

2010


 

2009


 

Total interest income

$

20,937

 

$

25,124

 

Total interest expense

 


7,909


 

 


12,328


 

   Net interest income

 

13,028

 

 

12,796

 

Provision for loan loss

 


19,710


 

 


10,530


 

   Net interest income after provision for loan loss

 

(6,682

)

 

2,266

 

 

 

 

 

 

 

 

NON-INTEREST INCOME

 

 

 

 

 

 

Deposit service charges

 

1,065

 

 

1,229

 

Net gains on mortgage loans

 

181

 

 

1,622

 

Trust fees

 

890

 

 

933

 

Other

 


1,332


 

 


1,539


 

   Total non-interest income

 

3,468

 

 

5,323

 

 

 

 

 

 

 

 

NON-INTEREST EXPENSE

 

 

 

 

 

 

Salaries and benefits

 

5,450

 

 

6,143

 

Occupancy

 

1,052

 

 

1,156

 

Furniture and equipment

 

981

 

 

1,017

 

FDIC assessment

 

1,257

 

 

771

 

Administration and disposition of problem assets

 

5,535

 

 

2,159

 

Other

 


3,651


 

 


3,235


 

   Total non-interest expense

 


17,926


 

 


14,481


 

Income (loss) before income tax

 

(21,140

)

 

(6,892

)

Income tax expense (benefit)

 


-


 

 


(2,750


)


 

 

 

 

 

 

 

Net income (loss)

$

(21,140

)

$

(4,142

)

Dividends declared on preferred shares

 


-


 

 


939


 

Net income (loss) available to common shares


$


(21,140


)


$


(5,081


)


 

 

 

 

 

 

 

Basic earnings per common share

$

(1.19

)

$

(0.30

)

Diluted earnings per common share

$

(1.19

)

$

(0.30

)

Return on average assets

 

-4.74%

 

 

-0.79%

 

Return on average equity

 

-101.04%

 

 

-10.99%

 

Net interest margin

 

3.22%

 

 

2.66%

 

Efficiency ratio

 

108.67%

 

 

79.92%

 






BALANCE SHEET DATA
Assets

March 31
2010


 

December 31
2009


 

March 31
2009


Cash and due from banks

$

22,948

 

$

24,687

 

$

22,262

Federal funds sold and other short-term investments

 

26,657

 

 

54,062

 

 

73,343

Securities available for sale

 

115,107

 

 

129,090

 

 

174,623

Securities held to maturity

 

333

 

 

414

 

 

1,757

Federal Home Loan Bank Stock

 

12,275

 

 

12,275

 

 

12,275

Loans held for sale

 

1,501

 

 

649

 

 

2,003

Total loans

 

1,438,107

 

 

1,510,816

 

 

1,699,945

Less allowance for loan loss

 


60,782


 

 


54,623


 

 


39,096


   Net loans

 


1,377,325


 

 


1,456,193


 

 


1,660,849


Premises and equipment, net

 

60,444

 

 

61,015

 

 

62,980

Bank-owned life insurance

 

24,595

 

 

24,395

 

 

23,628

Other real estate owned

 

45,790

 

 

37,183

 

 

18,510

Other assets

 


31,454


 

 


30,209


 

 


42,405


 

 

 

 

 

 

 

 

 

Total Assets

$


1,718,429


 

$


1,830,172


 

$


2,094,635


 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

$

228,842

 

$

221,470

 

$

190,757

Interest-bearing deposits

 


1,141,925


 

 


1,194,867


 

 


1,433,946


   Total deposits

 

1,370,767

 

 

1,416,337

 

 

1,624,703

Other borrowed funds

 

232,003

 

 

278,023

 

 

268,690

Surbordinated debt

 

1,650

 

 

1,650

 

 

-

Long-term debt

 

41,238

 

 

41,238

 

 

41,238

Other liabilities

 


5,854


 

 


4,933


 

 


15,360


Total Liabilities

 

1,651,512

 

 

1,742,181

 

 

1,949,991

 

 

 

 

 

 

 

 

 

Shareholders' equity

 


66,917


 

 


87,991


 

 


144,644


 

 

 

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

$


1,718,429


 

$


1,830,172


 

$


2,094,635






MACATAWA BANK CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA

(Unaudited)

(Dollars in thousands except per share information)

 

Quarterly


 

 

1st Qtr
2010


 

4th Qtr
2009


 

3rd Qtr
2009


 

2nd Qtr
2009


 

1st Qtr
2009


 

EARNINGS SUMMARY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$

13,028

 

$

13,406

 

$

13,194

 

$

13,398

 

$

12,796

 

Provision for loan loss

 

19,710

 

 

21,600

 

 

21,580

 

 

20,630

 

 

10,530

 

Total non-interest income

 

3,468

 

 

3,515

 

 

3,634

 

 

4,224

 

 

5,323

 

Total non-interest expense

 

17,926

 

 

15,915

 

 

15,731

 

 

21,264

 

 

14,481

 

Federal income tax expense (benefit)

 

-

 

 

(11,385

)

 

(600

)

 

6,134

 

 

(2,750

)

Net income (loss)

 

(21,140

)

 

(9,209

)

 

(19,883

)

 

(30,406

)

 

(4,142

)

Dividends declared on preferred shares

 

-

 

 

-

 

 

991

 

 

939

 

 

939

 

Net income (loss) available to common shares

$

(21,140

)

$

(9,209

)

$

(20,874

)

$

(31,345

)

$

(5,081

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

(1.19

)

$

(0.52

)

$

(1.18

)

$

(1.82

)

$

(0.30

)

Diluted earnings per common share

$

(1.19

)

$

(0.52

)

$

(1.18

)

$

(1.82

)

$

(0.30

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MARKET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per common share

$

1.91

 

$

3.10

 

$

3.64

 

$

4.74

 

$

6.64

 

Tangible book value per common share

$

1.88

 

$

3.07

 

$

3.62

 

$

4.71

 

$

6.61

 

Market value per common share

$

1.75

 

$

2.09

 

$

2.60

 

$

2.82

 

$

3.70

 

Average basic common shares

 

17,696,922

 

 

17,699,552

 

 

17,669,440

 

 

17,260,269

 

 

17,162,237

 

Average diluted common shares

 

17,696,922

 

 

17,699,552

 

 

17,669,440

 

 

17,260,269

 

 

17,162,237

 

Period end common shares

 

17,696,423

 

 

17,698,108

 

 

17,701,817

 

 

17,659,264

 

 

17,166,515

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

-4.74%

 

 

-1.95%

 

 

-3.97%

 

 

-5.87%

 

 

-0.79%

 

Return on average equity

 

-101.04%

 

 

-38.85%

 

 

-67.58%

 

 

-86.53%

 

 

-10.99%

 

Net interest margin (fully taxable equivalent)

 

3.22%

 

 

3.04%

 

 

2.83%

 

 

2.79%

 

 

2.66%

 

Efficiency ratio

 

108.67%

 

 

94.05%

 

 

93.48%

 

 

120.67%

 

 

79.92%

 

Full-time equivalent employees (period end)

 

375

 

 

380

 

 

395

 

 

400

 

 

407

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross charge-offs

$

14,235

 

$

15,563

 

$

11,758

 

$

22,317

 

$

10,304

 

Net charge-offs

$

13,550

 

$

15,026

 

$

11,152

 

$

22,105

 

$

9,696

 

Net charge-offs to average loans (annualized)

 

3.68%

 

 

3.91%

 

 

2.79%

 

 

5.27%

 

 

2.23%

 

Nonperforming loans

$

102,548

 

$

103,885

 

$

88,160

 

$

96,164

 

$

113,607

 

Other real estate and repossessed assets

$

45,874

 

$

37,308

 

$

33,643

 

$

23,855

 

$

19,074

 

Nonperforming loans to total loans

 

7.13%

 

 

6.88%

 

 

5.66%

 

 

5.93%

 

 

6.68%

 

Nonperforming assets to total assets

 

8.64%

 

 

7.71%

 

 

6.15%

 

 

5.97%

 

 

6.33%

 

Allowance for loan loss

$

60,782

 

$

54,623

 

$

48,049

 

$

37,621

 

$

39,096

 

Allowance for loan loss to total loans

 

4.23%

 

 

3.62%

 

 

3.09%

 

 

2.32%

 

 

2.30%

 

Allowance for loan loss to nonperforming loans

 

59.27%

 

 

52.58%

 

 

54.50%

 

 

39.12%

 

 

34.41%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPITAL & LIQUIDITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average equity to average assets

 

4.69%

 

 

5.01%

 

 

5.94%

 

 

6.79%

 

 

7.18%

 

Tier 1 capital to average assets (Consolidated)

 

4.80%

 

 

6.01%

 

 

6.30%

 

 

7.44%

 

 

8.52%

 

Total capital to risk-weighted assets (Consolidated)

 

8.27%

 

 

9.23%

 

 

9.46%

 

 

10.33%

 

 

11.17%

 

Tier 1 capital to average assets (Bank)

 

5.83%

 

 

6.58%

 

 

6.70%

 

 

7.43%

 

 

8.09%

 

Total capital to risk-weighted assets (Bank)

 

8.14%

 

 

9.07%

 

 

9.32%

 

 

10.16%

 

 

10.67%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

END OF PERIOD BALANCES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total portfolio loans

$

1,438,107

 

$

1,510,816

 

$

1,556,903

 

$

1,621,895

 

$

1,699,945

 

Earning assets

 

1,589,670

 

 

1,702,227

 

 

1,857,467

 

 

1,887,636

 

 

1,957,043

 

Total assets

 

1,718,429

 

 

1,830,172

 

 

1,981,772

 

 

2,011,939

 

 

2,092,792

 

Deposits

 

1,370,767

 

 

1,416,337

 

 

1,546,311

 

 

1,576,052

 

 

1,624,703

 

Total shareholders' equity

 

66,917

 

 

87,991

 

 

97,674

 

 

116,634

 

 

144,644

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total portfolio loans

$

1,473,337

 

$

1,538,038

 

$

1,598,743

 

$

1,678,648

 

$

1,735,738

 

Earning assets

 

1,649,121

 

 

1,769,242

 

 

1,870,995

 

 

1,940,364

 

 

1,959,359

 

Total assets

 

1,785,286

 

 

1,893,275

 

 

2,001,415

 

 

2,071,098

 

 

2,100,924

 

Deposits

 

1,394,701

 

 

1,467,497

 

 

1,554,127

 

 

1,611,922

 

 

1,620,159

 

Total shareholders' equity

 

83,692

 

 

94,819

 

 

117,687

 

 

140,556

 

 

150,747