Michigan
(State or other jurisdiction of Incorporation)
|
000-25927
(Commission File Number)
|
38-3391345
(I.R.S. Employer Identification No.)
|
10753 Macatawa Drive, Holland, Michigan
(Address of principal executive offices)
|
49424
(Zip Code)
|
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).
|
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).
|
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).
|
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).
|
Item 2.02 |
Results of Operations and Financial Condition.
|
Item 9.01 |
Financial Statements and Exhibits.
|
(d) |
Exhibits
|
99.1 |
Press Release dated April 25, 2019. This exhibit is furnished to, and not filed with, the Commission.
|
Dated: April 25, 2019
|
MACATAWA BANK CORPORATION
|
|
By
|
/s/ Jon W. Swets
|
|
Jon W. Swets
Chief Financial Officer
|
![]() |
|
For Immediate Release
|
|
NASDAQ Stock Market: MCBC
|
• |
Net income of $7.6 million in first quarter 2019 versus $5.8 million in first quarter 2018 – up 33%
|
• |
Growth in net interest income – up $1.8 million (13%) from first quarter 2018
|
• |
Net interest margin of 3.54% in first quarter 2019, up from 3.34% in first quarter 2018
|
• |
Decrease in total non-interest expense – down $196,000 (-2%) from first quarter 2018
|
• |
Loan portfolio balances up by $59 million (4%) from first quarter 2018
|
• |
Core deposit balances up by $57 million (4%) from first quarter 2018
|
• |
Asset quality metrics remained strong
|
Dollars in 000s
|
Mar 31,
2019
|
Dec 31,
2018
|
Sept 30,
2018
|
Jun 30,
2018
|
Mar 31,
2018
|
|||||||||||||||
Commercial Real Estate
|
$
|
213
|
$
|
318
|
$
|
121
|
$
|
121
|
$
|
121
|
||||||||||
Commercial and Industrial
|
---
|
873
|
---
|
2
|
201
|
|||||||||||||||
Total Commercial Loans
|
213
|
1,191
|
121
|
123
|
322
|
|||||||||||||||
Residential Mortgage Loans
|
195
|
112
|
2
|
2
|
2
|
|||||||||||||||
Consumer Loans
|
1
|
1
|
---
|
---
|
---
|
|||||||||||||||
Total Non-Performing Loans
|
$
|
409
|
$
|
1,304
|
$
|
123
|
$
|
125
|
$
|
324
|
Dollars in 000s
|
Mar 31,
2019
|
Dec 31,
2018
|
Sept 30,
2018
|
Jun 30,
2018
|
Mar 31,
2018
|
|||||||||||||||
Non-Performing Loans
|
$
|
409
|
$
|
1,304
|
$
|
123
|
$
|
125
|
$
|
324
|
||||||||||
Other Repossessed Assets
|
---
|
---
|
---
|
---
|
---
|
|||||||||||||||
Other Real Estate Owned
|
3,261
|
3,380
|
3,465
|
3,872
|
5,223
|
|||||||||||||||
Total Non-Performing Assets
|
$
|
3,670
|
$
|
4,684
|
$
|
3,588
|
$
|
3,997
|
$
|
5,547
|
Dollars in 000s
|
Mar 31,
2019
|
Dec 31,
2018
|
Sept 30,
2018
|
Jun 30,
2018
|
Mar 31,
2018
|
|||||||||||||||
Construction and Development
|
$
|
102,133
|
$
|
99,867
|
$
|
93,794
|
$
|
85,193
|
$
|
81,948
|
||||||||||
Other Commercial Real Estate
|
470,667
|
468,840
|
459,146
|
461,808
|
447,922
|
|||||||||||||||
Commercial Loans Secured by Real Estate
|
572,800
|
568,707
|
552,940
|
547,001
|
529,870
|
|||||||||||||||
Commercial and Industrial
|
493,891
|
513,347
|
467,703
|
458,468
|
477,088
|
|||||||||||||||
Total Commercial Loans
|
$
|
1,066,691
|
$
|
1,082,054
|
$
|
1,020,643
|
$
|
1,005,469
|
$
|
1,006,958
|
MACATAWA BANK CORPORATION
|
CONSOLIDATED FINANCIAL SUMMARY
|
(Unaudited)
|
(Dollars in thousands except per share information)
|
1st Qtr
|
4th Qtr
|
1st Qtr
|
||||||||||
EARNINGS SUMMARY
|
2019
|
2018
|
2018
|
|||||||||
Total interest income
|
$
|
19,189
|
$
|
18,496
|
$
|
16,019
|
||||||
Total interest expense
|
3,169
|
2,868
|
1,837
|
|||||||||
Net interest income
|
16,020
|
15,628
|
14,182
|
|||||||||
Provision for loan losses
|
(250
|
)
|
850
|
(100
|
)
|
|||||||
Net interest income after provision for loan losses
|
16,270
|
14,778
|
14,282
|
|||||||||
NON-INTEREST INCOME
|
||||||||||||
Deposit service charges
|
1,050
|
1,135
|
1,049
|
|||||||||
Net gains on mortgage loans
|
211
|
291
|
141
|
|||||||||
Trust fees
|
890
|
884
|
925
|
|||||||||
Other
|
2,177
|
2,095
|
2,017
|
|||||||||
Total non-interest income
|
4,328
|
4,405
|
4,132
|
|||||||||
NON-INTEREST EXPENSE
|
||||||||||||
Salaries and benefits
|
6,244
|
6,265
|
6,194
|
|||||||||
Occupancy
|
1,093
|
948
|
1,072
|
|||||||||
Furniture and equipment
|
844
|
787
|
805
|
|||||||||
FDIC assessment
|
120
|
127
|
132
|
|||||||||
Problem asset costs, including losses and (gains)
|
53
|
(582
|
)
|
461
|
||||||||
Other
|
2,884
|
2,852
|
2,770
|
|||||||||
Total non-interest expense
|
11,238
|
10,397
|
11,434
|
|||||||||
Income before income tax
|
9,360
|
8,786
|
6,980
|
|||||||||
Income tax expense
|
1,714
|
1,743
|
1,225
|
|||||||||
Net income
|
$
|
7,646
|
$
|
7,043
|
$
|
5,755
|
||||||
Basic earnings per common share
|
$
|
0.22
|
$
|
0.21
|
$
|
0.17
|
||||||
Diluted earnings per common share
|
$
|
0.22
|
$
|
0.21
|
$
|
0.17
|
||||||
Return on average assets
|
1.57
|
%
|
1.47
|
%
|
1.25
|
%
|
||||||
Return on average equity
|
15.81
|
%
|
15.12
|
%
|
13.24
|
%
|
||||||
Net interest margin (fully taxable equivalent)
|
3.54
|
%
|
3.46
|
%
|
3.34
|
%
|
||||||
Efficiency ratio
|
55.23
|
%
|
51.90
|
%
|
62.43
|
%
|
||||||
BALANCE SHEET DATA
|
March 31
|
December 31
|
March 31
|
|||||||||
Assets
|
2019
|
2018
|
2018
|
|||||||||
Cash and due from banks
|
$
|
28,143
|
$
|
40,526
|
$
|
26,954
|
||||||
Federal funds sold and other short-term investments
|
115,843
|
130,758
|
103,898
|
|||||||||
Debt securities available for sale
|
224,645
|
226,986
|
214,269
|
|||||||||
Debt securities held to maturity
|
70,336
|
70,334
|
90,513
|
|||||||||
Federal Home Loan Bank Stock
|
11,558
|
11,558
|
11,558
|
|||||||||
Loans held for sale
|
512
|
415
|
-
|
|||||||||
Total loans
|
1,384,567
|
1,405,658
|
1,325,545
|
|||||||||
Less allowance for loan loss
|
16,892
|
16,876
|
16,675
|
|||||||||
Net loans
|
1,367,675
|
1,388,782
|
1,308,870
|
|||||||||
Premises and equipment, net
|
44,805
|
44,862
|
46,110
|
|||||||||
Bank-owned life insurance
|
41,433
|
41,185
|
40,494
|
|||||||||
Other real estate owned
|
3,261
|
3,380
|
5,223
|
|||||||||
Other assets
|
17,669
|
16,338
|
15,891
|
|||||||||
Total Assets
|
$
|
1,925,880
|
$
|
1,975,124
|
$
|
1,863,780
|
||||||
Liabilities and Shareholders' Equity
|
||||||||||||
Noninterest-bearing deposits
|
$
|
466,631
|
$
|
485,530
|
$
|
453,993
|
||||||
Interest-bearing deposits
|
1,151,233
|
1,191,209
|
1,106,879
|
|||||||||
Total deposits
|
1,617,864
|
1,676,739
|
1,560,872
|
|||||||||
Other borrowed funds
|
60,000
|
60,000
|
80,667
|
|||||||||
Long-term debt
|
41,238
|
41,238
|
41,238
|
|||||||||
Other liabilities
|
8,812
|
6,294
|
5,627
|
|||||||||
Total Liabilities
|
1,727,914
|
1,784,271
|
1,688,404
|
|||||||||
Shareholders' equity
|
197,966
|
190,853
|
175,376
|
|||||||||
Total Liabilities and Shareholders' Equity
|
$
|
1,925,880
|
$
|
1,975,124
|
$
|
1,863,780
|
MACATAWA BANK CORPORATION
|
SELECTED CONSOLIDATED FINANCIAL DATA
|
(Unaudited)
|
(Dollars in thousands except per share information)
|
Quarterly
|
||||||||||||||||||||
1st Qtr
|
4th Qtr
|
3rd Qtr
|
2nd Qtr
|
1st Qtr
|
||||||||||||||||
2019
|
2018
|
2018
|
2018
|
2018
|
||||||||||||||||
EARNINGS SUMMARY
|
||||||||||||||||||||
Net interest income
|
$
|
16,020
|
$
|
15,628
|
$
|
15,162
|
$
|
14,653
|
$
|
14,182
|
||||||||||
Provision for loan losses
|
(250
|
)
|
850
|
-
|
(300
|
)
|
(100
|
)
|
||||||||||||
Total non-interest income
|
4,328
|
4,405
|
4,499
|
4,468
|
4,132
|
|||||||||||||||
Total non-interest expense
|
11,238
|
10,397
|
11,239
|
11,259
|
11,434
|
|||||||||||||||
Federal income tax expense
|
1,714
|
1,743
|
1,570
|
1,434
|
1,225
|
|||||||||||||||
Net income
|
$
|
7,646
|
$
|
7,043
|
$
|
6,852
|
$
|
6,728
|
$
|
5,755
|
||||||||||
Basic earnings per common share
|
$
|
0.22
|
$
|
0.21
|
$
|
0.20
|
$
|
0.20
|
$
|
0.17
|
||||||||||
Diluted earnings per common share
|
$
|
0.22
|
$
|
0.21
|
$
|
0.20
|
$
|
0.20
|
$
|
0.17
|
||||||||||
MARKET DATA
|
||||||||||||||||||||
Book value per common share
|
$
|
5.81
|
$
|
5.61
|
$
|
5.41
|
$
|
5.28
|
$
|
5.16
|
||||||||||
Tangible book value per common share
|
$
|
5.81
|
$
|
5.61
|
$
|
5.41
|
$
|
5.28
|
$
|
5.16
|
||||||||||
Market value per common share
|
$
|
9.94
|
$
|
9.62
|
$
|
11.71
|
$
|
12.14
|
$
|
10.27
|
||||||||||
Average basic common shares
|
34,040,380
|
34,031,454
|
34,014,319
|
34,016,679
|
34,010,396
|
|||||||||||||||
Average diluted common shares
|
34,040,380
|
34,031,454
|
34,014,319
|
34,016,679
|
34,011,592
|
|||||||||||||||
Period end common shares
|
34,044,149
|
34,045,411
|
34,014,319
|
34,014,319
|
34,017,525
|
|||||||||||||||
PERFORMANCE RATIOS
|
||||||||||||||||||||
Return on average assets
|
1.57
|
%
|
1.47
|
%
|
1.43
|
%
|
1.44
|
%
|
1.25
|
%
|
||||||||||
Return on average equity
|
15.81
|
%
|
15.12
|
%
|
15.12
|
%
|
15.23
|
%
|
13.24
|
%
|
||||||||||
Net interest margin (fully taxable equivalent)
|
3.54
|
%
|
3.46
|
%
|
3.37
|
%
|
3.37
|
%
|
3.34
|
%
|
||||||||||
Efficiency ratio
|
55.23
|
%
|
51.90
|
%
|
57.16
|
%
|
58.88
|
%
|
62.43
|
%
|
||||||||||
Full-time equivalent employees (period end)
|
332
|
334
|
332
|
339
|
332
|
|||||||||||||||
ASSET QUALITY
|
||||||||||||||||||||
Gross charge-offs
|
$
|
157
|
$
|
1,179
|
$
|
30
|
$
|
30
|
$
|
97
|
||||||||||
Net charge-offs/(recoveries)
|
$
|
(266
|
)
|
$
|
776
|
$
|
(108
|
)
|
$
|
(320
|
)
|
$
|
(175
|
)
|
||||||
Net charge-offs to average loans (annualized)
|
-0.08
|
%
|
0.23
|
%
|
-0.03
|
%
|
-0.10
|
%
|
-0.05
|
%
|
||||||||||
Nonperforming loans
|
$
|
409
|
$
|
1,304
|
$
|
123
|
$
|
125
|
$
|
324
|
||||||||||
Other real estate and repossessed assets
|
$
|
3,261
|
$
|
3,380
|
$
|
3,465
|
$
|
3,872
|
$
|
5,223
|
||||||||||
Nonperforming loans to total loans
|
0.03
|
%
|
0.09
|
%
|
0.01
|
%
|
0.01
|
%
|
0.02
|
%
|
||||||||||
Nonperforming assets to total assets
|
0.19
|
%
|
0.24
|
%
|
0.19
|
%
|
0.21
|
%
|
0.30
|
%
|
||||||||||
Allowance for loan losses
|
$
|
16,892
|
$
|
16,876
|
$
|
16,803
|
$
|
16,695
|
$
|
16,675
|
||||||||||
Allowance for loan losses to total loans
|
1.22
|
%
|
1.20
|
%
|
1.25
|
%
|
1.26
|
%
|
1.26
|
%
|
||||||||||
Allowance for loan losses to nonperforming loans
|
4130.07
|
%
|
1293.18
|
%
|
13660.98
|
%
|
13356.00
|
%
|
5146.60
|
%
|
||||||||||
CAPITAL
|
||||||||||||||||||||
Average equity to average assets
|
9.93
|
%
|
9.71
|
%
|
9.47
|
%
|
9.44
|
%
|
9.42
|
%
|
||||||||||
Common equity tier 1 to risk weighted assets (Consolidated)
|
12.55
|
%
|
12.01
|
%
|
12.13
|
%
|
11.83
|
%
|
11.67
|
%
|
||||||||||
Tier 1 capital to average assets (Consolidated)
|
12.22
|
%
|
12.12
|
%
|
11.90
|
%
|
11.91
|
%
|
11.83
|
%
|
||||||||||
Total capital to risk-weighted assets (Consolidated)
|
16.14
|
%
|
15.54
|
%
|
15.79
|
%
|
15.49
|
%
|
15.36
|
%
|
||||||||||
Common equity tier 1 to risk weighted assets (Bank)
|
14.66
|
%
|
14.09
|
%
|
14.28
|
%
|
14.01
|
%
|
13.87
|
%
|
||||||||||
Tier 1 capital to average assets (Bank)
|
11.90
|
%
|
11.78
|
%
|
11.56
|
%
|
11.58
|
%
|
11.50
|
%
|
||||||||||
Total capital to risk-weighted assets (Bank)
|
15.73
|
%
|
15.13
|
%
|
15.36
|
%
|
15.09
|
%
|
14.96
|
%
|
||||||||||
Tangible common equity to assets
|
10.29
|
%
|
9.67
|
%
|
9.59
|
%
|
9.60
|
%
|
9.42
|
%
|
||||||||||
END OF PERIOD BALANCES
|
||||||||||||||||||||
Total portfolio loans
|
$
|
1,384,567
|
$
|
1,405,658
|
$
|
1,344,683
|
$
|
1,327,686
|
$
|
1,325,545
|
||||||||||
Earning assets
|
1,809,469
|
1,849,630
|
1,804,672
|
1,751,167
|
1,751,315
|
|||||||||||||||
Total assets
|
1,925,880
|
1,975,124
|
1,919,273
|
1,872,541
|
1,863,780
|
|||||||||||||||
Deposits
|
1,617,864
|
1,676,739
|
1,617,743
|
1,580,461
|
1,560,872
|
|||||||||||||||
Total shareholders' equity
|
197,966
|
190,853
|
183,976
|
179,714
|
175,376
|
|||||||||||||||
AVERAGE BALANCES
|
||||||||||||||||||||
Total portfolio loans
|
$
|
1,399,464
|
$
|
1,363,548
|
$
|
1,325,268
|
$
|
1,327,408
|
$
|
1,314,838
|
||||||||||
Earning assets
|
1,833,924
|
1,806,229
|
1,799,600
|
1,756,909
|
1,730,576
|
|||||||||||||||
Total assets
|
1,948,301
|
1,918,543
|
1,915,655
|
1,872,559
|
1,845,911
|
|||||||||||||||
Deposits
|
1,646,268
|
1,618,861
|
1,614,151
|
1,575,408
|
1,537,376
|
|||||||||||||||
Total shareholders' equity
|
193,463
|
186,361
|
181,329
|
176,749
|
173,913
|