Date of Report (Date of earliest event reported)
|
July 13, 2011 |
MUTUALFIRST FINANCIAL, INC.
|
||
(Exact name of registrant as specified in its chapter)
|
Maryland
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000-27905
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35-2085640
|
||
(State or other jurisdiction
of incorporation
|
(Commission
File Number)
|
(IRS Employer
Identification No.)
|
110 E. Charles Street, Muncie, Indiana
|
47305-2419
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Registrant's telephone number, including area code
|
(765) 747-2800 |
Not Applicable
|
(Former name or former address, if changed since last report)
|
o |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
(d)
|
Exhibits
|
||
99
|
Press release dated July 13, 2011.
|
MUTUALFIRST FINANCIAL, INC.
|
|
Date: July 13, 2011
|
By: /s/ David W. Heeter
David W. Heeter
President and Chief Executive Officer
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Exhibit Number
|
Description
|
||
99
|
Press Release, dated July 13, 2011
|
Date:
|
July 13, 2011
|
From:
|
MutualFirst Financial, Inc.For
|
Publication:
|
Immediately
|
Contact:
|
Chris Cook, Senior Vice President, Treasurer and CFO of
MutualFirst Financial, Inc. (765) 747-2945
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·
|
Gross loans stabilized in the second quarter after declining $29.6 million in the first quarter of 2011.
|
·
|
Deposits decreased $12.9 million in the second quarter as higher rate certificate of deposit balances declined $19.2 million.
|
·
|
Tangible common equity increased to 7.19% in the second quarter of 2011.
|
·
|
Allowance for loan losses to non-performing loans was 52.98% as of June 30, 2011 compared to 52.97% as of March 31, 2011. Allowance for loan losses to loans receivable was 1.65% as of June 30, 2011 compared to 1.64% as of March 31, 2011.
|
·
|
Net charge offs on an annualized basis were .64% in the second quarter 2011 compared to 1.94% in the first quarter of 2011.
|
·
|
Net interest margin was 3.19% for the second quarter 2011 compared to 3.14% in the first quarter 2011.
|
·
|
Non-interest income for the quarter ended June 30, 2011 increased $453,000 compared to the first quarter 2011.
|
·
|
Non-interest expense for the second quarter 2011 decreased $413,000 compared to the first quarter 2011.
|
MUTUALFIRST FINANCIAL INC. | ||||||
June 30,
|
March 31,
|
December 31,
|
||||||||||||||||||
Balance Sheet (Unaudited):
|
2011
|
2011
|
2010
|
|||||||||||||||||
(000 | ) | (000 | ) | (000 | ) | |||||||||||||||
Assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 34,287 | $ | 78,711 | $ | 26,821 | ||||||||||||||
Investment securities - AFS
|
304,463 | 270,081 | 245,165 | |||||||||||||||||
Loans held for sale
|
654 | 925 | 10,483 | |||||||||||||||||
Loans, gross
|
965,440 | 965,643 | 995,273 | |||||||||||||||||
Allowance for loan loss
|
(15,957 | ) | (15,797 | ) | (16,372 | ) | ||||||||||||||
Net loans
|
949,483 | 949,846 | 978,901 | |||||||||||||||||
Premise and equipment
|
32,305 | 32,584 | 32,966 | |||||||||||||||||
FHLB of Indianapolis stock
|
14,391 | 16,682 | 16,682 | |||||||||||||||||
Investment in limited partnerships
|
3,368 | 3,496 | 3,624 | |||||||||||||||||
Cash surrender value of life insurance
|
46,328 | 45,916 | 45,566 | |||||||||||||||||
Prepaid FDIC premium
|
3,427 | 3,730 | 4,208 | |||||||||||||||||
Core deposit and other intangibles
|
3,919 | 4,224 | 4,533 | |||||||||||||||||
Deferred income tax benefit
|
16,616 | 19,101 | 20,030 | |||||||||||||||||
Other assets
|
20,691 | 21,922 | 17,923 | |||||||||||||||||
Total assets
|
1,429,932 | 1,447,218 | 1,406,902 | |||||||||||||||||
Liabilities and Stockholders' Equity
|
||||||||||||||||||||
Deposits
|
1,161,570 | 1,174,459 | 1,121,569 | |||||||||||||||||
FHLB advances
|
106,656 | 114,769 | 128,538 | |||||||||||||||||
Other borrowings
|
12,794 | 12,981 | 13,167 | |||||||||||||||||
Other liabilities
|
12,890 | 14,037 | 12,488 | |||||||||||||||||
Stockholders' equity
|
136,022 | 130,972 | 131,140 | |||||||||||||||||
Total liabilities and stockholders' equity
|
1,429,932 | 1,447,218 | 1,406,902 | |||||||||||||||||
Three Months
|
Three Months
|
Three Months
|
Six Months
|
Six Months
|
||||||||||||||||
Ended
|
Ended
|
Ended
|
Ended
|
Ended
|
||||||||||||||||
June 30,
|
March 31,
|
June 30,
|
June 30,
|
June 30,
|
||||||||||||||||
Income Statement (Unaudited):
|
2011 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||
(000 | ) | (000 | ) | (000 | ) | (000 | ) | (000 | ) | |||||||||||
Total interest income
|
$ | 15,807 | $ | 15,683 | $ | 17,403 | $ | 31,490 | $ | 34,647 | ||||||||||
Total interest expense
|
5,253 | 5,368 | 6,525 | 10,621 | 13,281 | |||||||||||||||
Net interest income
|
10,554 | 10,315 | 10,878 | 20,869 | 21,366 | |||||||||||||||
Provision for loan losses
|
1,700 | 4,200 | 1,525 | 5,900 | 3,050 | |||||||||||||||
Net interest income after provision
|
||||||||||||||||||||
for loan losses
|
8,854 | 6,115 | 9,353 | 14,969 | 18,316 | |||||||||||||||
Non-interest income
|
||||||||||||||||||||
Fees and service charges
|
1,726 | 1,604 | 1,887 | 3,331 | 3,627 | |||||||||||||||
Net gain (loss) on sale of investments
|
1 | 74 | 35 | 75 | 320 | |||||||||||||||
Other than temporary impairment of securities
|
0 | (193 | ) | (151 | ) | (193 | ) | (728 | ) | |||||||||||
Equity in losses of limited partnerships
|
(116 | ) | (34 | ) | (128 | ) | (149 | ) | (255 | ) | ||||||||||
Commissions
|
1,005 | 951 | 1,082 | 1,956 | 2,024 | |||||||||||||||
Net gain (loss) on loan sales
|
349 | 92 | 209 | 441 | 564 | |||||||||||||||
Net servicing fees
|
18 | 27 | 31 | 44 | 68 | |||||||||||||||
Increase in cash surrender value of life insurance
|
374 | 351 | 372 | 724 | 755 | |||||||||||||||
Other income
|
17 | 49 | 56 | 67 | 159 | |||||||||||||||
Total non-interest income
|
3,374 | 2,921 | 3,393 | 6,296 | 6,534 | |||||||||||||||
Non-interest expense
|
||||||||||||||||||||
Salaries and benefits
|
5,340 | 5,523 | 5,332 | 10,863 | 10,668 | |||||||||||||||
Occupancy and equipment
|
1,390 | 1,463 | 1,372 | 2,852 | 2,797 | |||||||||||||||
Data processing fees
|
379 | 401 | 387 | 780 | 798 | |||||||||||||||
Professional fees
|
376 | 360 | 243 | 736 | 585 | |||||||||||||||
Marketing
|
300 | 300 | 306 | 600 | 604 | |||||||||||||||
Deposit insurance
|
332 | 508 | 453 | 840 | 899 | |||||||||||||||
Software subscriptions and maintenance
|
313 | 318 | 403 | 631 | 800 | |||||||||||||||
Intangible amortization
|
306 | 309 | 353 | 614 | 706 | |||||||||||||||
Repossessed assets expense
|
368 | 435 | 614 | 803 | 1,081 | |||||||||||||||
Other expenses
|
958 | 858 | 1,021 | 1,820 | 1,881 | |||||||||||||||
Total non-interest expense
|
10,062 | 10,475 | 10,484 | 20,539 | 20,819 | |||||||||||||||
Income before taxes
|
2,166 | (1,439 | ) | 2,262 | 726 | 4,031 | ||||||||||||||
Income tax provision (benefit)
|
485 | (746 | ) | 487 | (261 | ) | 913 | |||||||||||||
Net income
|
1,681 | (693 | ) | 1,775 | 987 | 3,118 | ||||||||||||||
Preferred stock dividends and amortization
|
451 | 451 | 451 | 902 | 902 | |||||||||||||||
Net income available to common shareholders
|
$ | 1,230 | $ | (1,144 | ) | $ | 1,324 | $ | 85 | $ | 2,216 |
Average Balances, Net Interest Income, Yield Earned and Rates Paid
|
||||||||||||||||||||||||
Three
|
Three
|
|||||||||||||||||||||||
mos ended
|
mos ended
|
|||||||||||||||||||||||
6/30/2011
|
6/30/2010
|
|||||||||||||||||||||||
Average
|
Interest
|
Average
|
Average
|
Interest
|
Average
|
|||||||||||||||||||
Outstanding
|
Earned/
|
Yield/
|
Outstanding
|
Earned/
|
Yield/
|
|||||||||||||||||||
Balance
|
Paid
|
Rate
|
Balance
|
Paid
|
Rate
|
|||||||||||||||||||
(000 | ) | (000 | ) | (000 | ) | (000 | ) | |||||||||||||||||
Interest-Earning Assets:
|
||||||||||||||||||||||||
Interest -bearing deposits
|
$ | 49,943 | $ | 30 | 0.24 | % | $ | 88,121 | $ | 56 | 0.25 | % | ||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||
Available-for-sale
|
273,964 | 2,108 | 3.08 | 175,556 | 1,721 | 3.92 | ||||||||||||||||||
Held-to-maturity
|
0 | 0 | - | 7,481 | 131 | 7.00 | ||||||||||||||||||
Investment securities:
|
||||||||||||||||||||||||
Available-for-sale
|
19,801 | 151 | 3.05 | 18,346 | 161 | 3.51 | ||||||||||||||||||
Loans receivable
|
964,780 | 13,415 | 5.56 | 1,039,443 | 15,242 | 5.87 | ||||||||||||||||||
Stock in FHLB of Indianapolis
|
16,148 | 103 | 2.55 | 18,632 | 92 | 1.98 | ||||||||||||||||||
Total interest-earning assets (3)
|
1,324,636 | 15,807 | 4.77 | 1,347,579 | 17,403 | 5.17 | ||||||||||||||||||
Non-interest earning assets, net of allowance
|
||||||||||||||||||||||||
for loan losses and unrealized gain/loss
|
121,458 | 131,466 | ||||||||||||||||||||||
Total assets
|
$ | 1,446,094 | $ | 1,479,045 | ||||||||||||||||||||
Interest-Bearing Liabilities:
|
||||||||||||||||||||||||
Demand and NOW accounts
|
$ | 229,755 | 323 | 0.56 | $ | 186,499 | 257 | 0.55 | ||||||||||||||||
Savings deposits
|
97,190 | 37 | 0.15 | 91,545 | 36 | 0.16 | ||||||||||||||||||
Money market accounts
|
64,724 | 121 | 0.75 | 66,621 | 156 | 0.94 | ||||||||||||||||||
Certificate accounts
|
665,849 | 3,718 | 2.23 | 669,630 | 4,174 | 2.49 | ||||||||||||||||||
Total deposits
|
1,057,518 | 4,199 | 1.59 | 1,014,295 | 4,623 | 1.82 | ||||||||||||||||||
Borrowings
|
122,978 | 1,054 | 3.43 | 210,792 | 1,902 | 3.61 | ||||||||||||||||||
Total interest-bearing accounts
|
1,180,496 | 5,253 | 1.78 | 1,225,087 | 6,525 | 2.13 | ||||||||||||||||||
Non-interest bearing deposit accounts
|
120,803 | 107,805 | ||||||||||||||||||||||
Other liabilities
|
12,491 | 14,823 | ||||||||||||||||||||||
Total liabilities
|
1,313,790 | 1,347,715 | ||||||||||||||||||||||
Stockholders' equity
|
132,304 | 131,330 | ||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$ | 1,446,094 | $ | 1,479,045 | ||||||||||||||||||||
Net earning assets
|
$ | 144,140 | $ | 122,492 | ||||||||||||||||||||
Net interest income
|
$ | 10,554 | $ | 10,878 | ||||||||||||||||||||
Net interest rate spread
|
2.99 | % | 3.04 | % | ||||||||||||||||||||
Net yield on average interest-earning assets
|
3.19 | % | 3.23 | % | ||||||||||||||||||||
Average interest-earning assets to
|
||||||||||||||||||||||||
average interest-bearing liabilities
|
112.21 | % | 110.00 | % |
Three Months
|
Three Months
|
Three Months
|
Six Months
|
Six Months
|
||||||||||||||||
Ended
|
Ended
|
Ended
|
Ended
|
Ended
|
||||||||||||||||
June 30,
|
March 31,
|
June 30,
|
June 30,
|
June 30,
|
||||||||||||||||
Selected Financial Ratios and Other Financial Data (Unaudited):
|
2011
|
2011
|
2010
|
2011
|
2010
|
|||||||||||||||
Share and per share data:
|
||||||||||||||||||||
Average common shares outstanding
|
||||||||||||||||||||
Basic
|
6,903,151 | 6,893,695 | 6,869,535 | 6,898,691 | 6,865,562 | |||||||||||||||
Diluted
|
7,005,882 | 7,044,414 | 6,881,672 | 7,025,416 | 6,872,905 | |||||||||||||||
Per common share:
|
||||||||||||||||||||
Basic earnings
|
$ | 0.18 | $ | (0.17 | ) | $ | 0.19 | $ | 0.01 | $ | 0.32 | |||||||||
Diluted earnings
|
$ | 0.18 | $ | (0.17 | ) | $ | 0.19 | $ | 0.01 | $ | 0.32 | |||||||||
Dividends
|
$ | 0.06 | $ | 0.06 | $ | 0.06 | $ | 0.12 | $ | 0.12 | ||||||||||
Dividend payout ratio
|
33.33 | % | -35.29 | % | 31.58 | % | 1200.00 | % | 37.50 | % | ||||||||||
Performance Ratios:
|
||||||||||||||||||||
Return on average assets (ratio of net
|
||||||||||||||||||||
income to average total assets)(1)
|
0.46 | % | -0.19 | % | 0.48 | % | 0.14 | % | 0.42 | % | ||||||||||
Return on average tangible common equity (ratio of net
|
||||||||||||||||||||
income to average tangible common equity)(1)
|
5.14 | % | -4.86 | % | 5.66 | % | 0.18 | % | 4.77 | % | ||||||||||
Interest rate spread information:
|
||||||||||||||||||||
Average during the period(1)
|
2.99 | % | 2.93 | % | 3.04 | % | 2.96 | % | 3.02 | % | ||||||||||
Net interest margin(1)(2)
|
3.19 | % | 3.14 | % | 3.23 | % | 3.16 | % | 3.20 | % | ||||||||||
Efficiency Ratio
|
72.24 | % | 79.14 | % | 73.46 | % | 75.61 | % | 74.62 | % | ||||||||||
Ratio of average interest-earning
|
||||||||||||||||||||
assets to average interest-bearing
|
||||||||||||||||||||
liabilities
|
112.32 | % | 112.59 | % | 110.00 | % | 112.45 | % | 109.42 | % | ||||||||||
Allowance for loan losses:
|
||||||||||||||||||||
Balance beginning of period
|
$ | 15,797 | $ | 16,372 | $ | 16,635 | $ | 16,372 | $ | 16,414 | ||||||||||
Charge offs:
|
||||||||||||||||||||
One- to four- family
|
820 | 1,371 | 258 | 2,191 | 723 | |||||||||||||||
Multi-family
|
0 | 0 | 232 | 0 | 232 | |||||||||||||||
Commercial real estate
|
292 | 3,273 | 692 | 3,565 | 1,036 | |||||||||||||||
Construction or development
|
0 | 0 | 0 | 0 | 0 | |||||||||||||||
Consumer loans
|
652 | 428 | 917 | 1,080 | 1,812 | |||||||||||||||
Commercial business loans
|
0 | 0 | 0 | 0 | 0 | |||||||||||||||
Sub-total
|
1,764 | 5,072 | 2,099 | 6,836 | 3,803 | |||||||||||||||
Recoveries:
|
||||||||||||||||||||
One- to four- family
|
59 | 44 | 61 | 103 | 146 | |||||||||||||||
Multi-family
|
0 | 0 | 0 | 0 | 0 | |||||||||||||||
Commercial real estate
|
1 | 0 | 0 | 1 | 68 | |||||||||||||||
Construction or development
|
0 | 0 | 0 | 0 | 0 | |||||||||||||||
Consumer loans
|
164 | 253 | 126 | 417 | 373 | |||||||||||||||
Commercial business loans
|
0 | 0 | 0 | 0 | 0 | |||||||||||||||
Sub-total
|
224 | 297 | 187 | 521 | 587 | |||||||||||||||
Net charge offs
|
1,540 | 4,775 | 1,912 | 6,315 | 3,216 | |||||||||||||||
Additions charged to operations
|
1,700 | 4,200 | 1,525 | 5,900 | 3,050 | |||||||||||||||
Balance end of period
|
$ | 15,957 | $ | 15,797 | $ | 16,248 | $ | 15,957 | $ | 16,248 | ||||||||||
Net loan charge-offs to average loans (1)
|
0.64 | % | 1.94 | % | 0.74 | % | 1.30 | % | 0.61 | % |
June 30,
|
March 31,
|
June 30,
|
||||||||||
2011 | 2011 | 2010 | ||||||||||
Total shares outstanding
|
6,986,586 | 6,985,087 | 6,984,754 | |||||||||
Tangible book value per share
|
$ | 14.27 | $ | 13.51 | $ | 13.86 | ||||||
Tangible common equity to tangible assets
|
7.19 | % | 6.72 | % | 6.94 | % | ||||||
Nonperforming assets (000's)
|
||||||||||||
Non-accrual loans
|
||||||||||||
One- to four- family
|
$ | 9,520 | $ | 10,768 | $ | 13,501 | ||||||
Commercial real estate
|
10,435 | 10,333 | 7,464 | |||||||||
Consumer loans
|
2,553 | 2,858 | 2,013 | |||||||||
Commercial business loans
|
1,144 | 1,032 | 592 | |||||||||
Total non-accrual loans
|
23,652 | 24,991 | 23,570 | |||||||||
Accruing loans past due 90 days or more
|
1,038 | 0 | 876 | |||||||||
Restructured loans
|
5,431 | 4,829 | 1,224 | |||||||||
Total nonperforming loans
|
30,121 | 29,820 | 25,670 | |||||||||
Real estate owned
|
7,151 | 8,096 | 6,171 | |||||||||
Other repossessed assets
|
937 | 1,070 | 1,318 | |||||||||
Nonperforming securities
|
0 | 0 | 100 | |||||||||
Total nonperforming assets
|
$ | 38,209 | $ | 38,986 | $ | 33,259 | ||||||
Asset Quality Ratios:
|
||||||||||||
Non-performing assets to total assets
|
2.67 | % | 2.69 | % | 2.31 | % | ||||||
Non-performing loans to total loans
|
3.12 | % | 3.09 | % | 2.49 | % | ||||||
Allowance for loan losses to non-performing loans
|
52.98 | % | 52.97 | % | 63.30 | % | ||||||
Allowance for loan losses to loans receivable
|
1.65 | % | 1.64 | % | 1.58 | % | ||||||
(1) Ratios for the three and six month periods have been annualized.
|
(2) Net interest income divided by average interest earning assets.
|
(3) Calculated net of deferred loan fees, loan discounts, loans in process and loss reserves.
|