Mercantile Bank Corporation Announces Strong Fourth Quarter and Full-Year 2023 Results
- Significant increase in net interest income by approximately 22% in 2023 compared to 2022
- Robust loan growth and sustained strength in asset quality metrics
- Announcement of higher first quarter 2024 regular cash dividend, representing increases of approximately 3% and 6% from the dividends paid during the fourth and first quarters of 2023, respectively
- Total revenue of $226 million during 2023, up 18.6% from 2022
- Net interest income of $194 million during 2023, up 22.3% from 2022
- Total assets increased to $5.35 billion, up $481 million from December 31, 2022
- Total loans increased by 9.9% during 2023, reflecting growth in commercial loans and residential mortgage loans
- Shareholders’ equity totaled $522 million as of December 31, 2023, up $80.7 million from year-end 2022
- Net interest income during the fourth quarter of 2023 was $48.7 million, down $2.0 million, or 4.0%, from the respective 2022 period
- Noninterest income was up $0.2 million in 2023 compared to 2022, mainly reflecting growth in credit and debit card income, interest rate swap income, bank owned life insurance income, and payroll processing fees, which more than offset lower levels of mortgage banking income and service charges on accounts
- Mercantile recorded provisions for credit losses of $7.7 million during 2023, up from $6.6 million in 2022
Insights
The reported increase in net interest income and robust loan growth for Mercantile Bank Corporation suggests a positive trend in the bank's fundamental performance. The expansion of the loan portfolio, particularly in commercial and residential mortgage loans, indicates a healthy demand for credit, which is often a sign of economic strength or confidence among borrowers. However, the increase in the cost of funds, primarily due to a higher interest rate environment, has offset some of the gains from asset yields, leading to a decrease in net interest income in the fourth quarter of 2023 compared to the same period in 2022.
Investors should note the bank's strategic response to the changing interest rate environment, as it has managed to grow its loan portfolio while maintaining strong asset quality metrics. The low levels of nonperforming assets and loan charge-offs demonstrate effective risk management practices. Additionally, the bank's capital position remains robust, with a 'well-capitalized' status and a total risk-based capital ratio of 13.4 percent, which is above the regulatory minimum.
Furthermore, the increase in provisions for credit losses reflects a prudent approach to potential risks in the loan portfolio, which is particularly important given the current economic uncertainties. The bank's ability to grow fee-based income categories also provides a diversified revenue stream, which can help mitigate the impact of interest rate fluctuations on earnings.
The banking sector is sensitive to changes in interest rates and Mercantile Bank's performance reflects this. The Federal Open Market Committee's (FOMC) actions to raise the federal funds rate have directly impacted the bank's yield on loans and cost of funds. The reported increase in yield on loans due to higher interest rates on variable-rate commercial loans is a direct consequence of the FOMC's policy decisions aimed at curbing inflation.
From a market perspective, Mercantile Bank's strategic initiatives, such as enhancing on-balance sheet liquidity and marketing treasury management products, are important for sustaining growth in a competitive banking landscape. The bank's focus on maintaining a diversified loan portfolio, with a consistent percentage of commercial and industrial loans, indicates stability in its core business areas.
Investors should consider the bank's ability to manage overhead costs effectively, as evidenced by the controlled increase in noninterest expense. This cost management, along with revenue diversification, positions the bank to potentially weather economic headwinds. The announcement of an increased cash dividend for the first quarter of 2024 may be seen as a signal of confidence in the bank's financial health and future prospects.
Macro-economic factors, such as inflation and the corresponding monetary policy response, have had a significant impact on the banking sector. Mercantile Bank's financial results are a microcosm of these wider economic trends. The FOMC's interest rate hikes, aimed at controlling inflation, have led to a higher yield on loans but also increased the cost of funds. This dynamic affects the net interest margin, which is a critical indicator of a bank's profitability.
While the bank has experienced loan growth, the rising interest rates present a double-edged sword, potentially increasing the cost of borrowing for customers, which could affect loan demand and repayment capabilities in the future. The bank's proactive measures in setting aside provisions for credit losses indicate foresight in preparing for potential economic downturns.
The balance between loan growth and asset quality will be key in managing credit risk, especially in an environment where economic forecasts remain uncertain. Mercantile Bank's solid capital position and strategic management of its asset portfolio, including its investments categorized as available-for-sale, will be crucial in navigating the challenges posed by shifting economic conditions.
Significant increase in net interest income, robust loan growth, and ongoing strength in asset quality metrics highlight the year
GRAND RAPIDS, Mich., Jan. 16, 2024 (GLOBE NEWSWIRE) -- Mercantile Bank Corporation (NASDAQ: MBWM) ("Mercantile") reported net income of
“We are very pleased to report another year of outstanding financial results,” said Robert B. Kaminski, Jr., President and Chief Executive Officer of Mercantile. “Our robust operating performance was driven by a substantial increase in net interest income, which was up approximately 22 percent in 2023 compared to 2022 mainly due to a higher net interest margin and solid commercial loan and residential mortgage loan growth. As demonstrated by the continuing growth in the loan portfolio and sustained strength in asset quality metrics, our lending team remains focused on meeting the credit needs of existing clients and developing relationships with new customers while adhering to sound underwriting practices. We believe our strong overall financial condition positions us to successfully meet challenges arising from changing operating environments.”
Full-year highlights include:
- Substantial increase in net interest income depicting net interest margin expansion and loan growth
- Notable increases in several treasury management fee income categories
- Strong commercial loan and residential mortgage loan growth
- Sustained strength in commercial loan pipeline
- Ongoing low levels of nonperforming assets, past due loans, and loan charge-offs
- Solid capital position
- Announced higher first quarter 2024 regular cash dividend, representing increases of approximately 3 percent and 6 percent from the dividends paid during the fourth and first quarters of 2023, respectively
Operating Results
Total revenue, consisting of net interest income and noninterest income, was
The net interest margin was 3.92 percent in the fourth quarter of 2023, down from 4.30 percent in the prior-year fourth quarter. The yield on average earning assets was 5.95 percent during the current-year fourth quarter, an increase from 4.95 percent during the respective 2022 period. The higher yield on average earning assets primarily resulted from an increased yield on loans. The yield on loans was 6.53 percent during the fourth quarter of 2023, up from 5.49 percent during the fourth quarter of 2022 mainly due to higher interest rates on variable-rate commercial loans resulting from the Federal Open Market Committee (“FOMC”) significantly raising the targeted federal funds rate in an effort to curb elevated inflation levels. The FOMC increased the targeted federal funds rate by 225 basis points during the period of November 2022 through July 2023, during which time average variable-rate commercial loans represented approximately 65 percent of average total commercial loans.
The cost of funds was 2.03 percent in the fourth quarter of 2023, up from 0.65 percent in the fourth quarter of 2022 primarily due to higher costs of deposits and borrowed funds, reflecting the impact of the rising interest rate environment, and a change in funding mix, mainly consisting of a decrease in noninterest-bearing and lower-cost deposits and an increase in higher-cost money market accounts and time deposits, driven by deposit migration and new deposit relationships.
Total revenue was
The net interest margin was 4.05 percent in 2023, up from 3.32 percent in the prior-year. The yield on average earning assets was 5.68 percent during 2023, an increase from 3.82 percent during 2022. The higher yield on average earning assets primarily resulted from an increased yield on loans. The yield on loans was 6.25 percent during 2023, up from 4.50 percent during 2022 mainly due to higher interest rates on variable-rate commercial loans resulting from the FOMC substantially raising the targeted federal funds rate in an effort to reduce elevated inflation levels. The FOMC increased the targeted federal funds rate by 525 basis points during the period of March 2022 through July 2023, during which time average variable-rate commercial loans represented approximately 64 percent of average total commercial loans.
The cost of funds rose from 0.50 percent in 2022 to 1.63 percent in 2023 primarily due to higher costs of deposits and borrowings, stemming from the increased interest rate environment, and a change in funding mix, mainly consisting of a decrease in noninterest-bearing and lower-cost deposits and an increase in time deposits, reflecting deposit migration and new deposit relationships.
Mercantile recorded provisions for credit losses of
Noninterest income totaled
Noninterest expense totaled
Mr. Kaminski commented, “The notable increase in net interest income during 2023 compared to the previous year primarily reflected a significantly improved net interest margin and continuing loan portfolio expansion. We are pleased with the growth in several key fee income categories, reflecting the effective marketing of treasury management products and services, and remain committed to growing in a cost-conscious manner. Overhead cost control continues to be a top priority, and we regularly review our expense structure to identify opportunities to enhance operating efficiency while continuing to provide our clients with exceptional service and a wide array of market-leading products and services to meet their banking needs.”
Balance Sheet
As of December 31, 2023, total assets were
As of December 31, 2023, unfunded commitments on commercial construction and development loans, which are expected to be funded over the next 12 to 18 months, and residential construction loans, which are expected to be largely funded over the next 12 months, totaled
Ray Reitsma, President of Mercantile Bank, noted, “We are very pleased with the strong level of commercial loan growth during 2023, especially when considering the significant amounts of full and partial paydowns that occurred during the year. Growth in commercial and industrial loans afforded members of our sales team with additional opportunities to enhance commercial banking-related fee income through the marketing of treasury management products and services and acquire local deposits. We believe future commercial loan expansion levels will continue to be solid in light of our robust loan pipeline and line availability on construction loans. The residential mortgage loan portfolio grew throughout 2023, as it did during all of 2022, despite persistent market challenges, including limited inventory levels and the higher interest rate environment.”
Commercial and industrial loans and owner-occupied commercial real estate loans together represented approximately 58 percent of total commercial loans as of December 31, 2023, a level that has remained relatively consistent with prior periods and in line with our expectations.
Total deposits as of December 31, 2023, were
Asset Quality
Nonperforming assets totaled
The level of past due loans remains nominal, and the dollar volume of loan relationships on the internal watch list declined marginally during 2023. During the fourth quarter of 2023, loan charge-offs totaled
Mr. Reitsma remarked, “Our asset quality measures stayed strong throughout 2023, demonstrating our sustained commitment to underwriting loans in a sound and vigilant manner and our borrowers’ abilities to effectively address issues stemming from the current operating environment, including higher interest rates and related increase in debt service requirements. We believe our robust loan review program and focus on early recognition and reporting of deteriorating credit relationships should position us to identify any emerging credit issues and limit the impact of such on our overall financial condition. Our residential mortgage loan and consumer loan portfolios have not exhibited any systemic credit problems, such as elevated delinquency levels, and we remain pleased with the performance of both portfolio segments.”
Capital Position
Shareholders’ equity totaled
All of Mercantile’s investments are categorized as available-for-sale. As of December 31, 2023, the net unrealized loss on these investments totaled
Mercantile reported 16,125,662 total shares outstanding at December 31, 2023.
Mr. Kaminski concluded, “As evidenced by our Board of Directors’ declaration of an increased first quarter 2024 regular cash dividend earlier today, we remain committed to providing shareholders with meaningful cash returns on their investments while supporting sustained loan growth. We believe our robust overall financial condition, including a strong capital position, pristine asset quality metrics, solid operating performance, and significant loan origination prospects, should allow us to effectively address any issues resulting from shifting economic conditions. Our strong financial condition throughout all of 2023, along with expected loan portfolio expansion, give us confidence that solid operating results can be attained in future periods as we strive to remain a steady and profitable performer.”
Investor Presentation
Mercantile has prepared presentation materials that management intends to use during its previously announced fourth quarter 2023 conference call on Tuesday, January 16, 2024, at 10:00 a.m. Eastern Time, and from time to time thereafter in presentations about the company’s operations and performance. These materials, which are available for viewing in the Investor Relations section of Mercantile’s website at www.mercbank.com, have been furnished to the U.S. Securities and Exchange Commission concurrently with this press release.
About Mercantile Bank Corporation
Based in Grand Rapids, Michigan, Mercantile Bank Corporation is the bank holding company for Mercantile Bank. 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
Forward-Looking Statements
This news release contains statements or information that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will,” and similar references to future periods. Any such statements 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; increasing rates of inflation and slower growth rates or recession; significant declines in the value of commercial real estate; market volatility; demand for products and services; climate impacts; labor markets; the degree of competition by traditional and nontraditional financial services companies; changes in banking regulation or actions by bank regulators; changes in tax laws and other laws and regulations applicable to us; changes in prices, levies, and assessments; the impact of technological advances; potential cyber-attacks, information security breaches and other criminal activities; litigation liabilities; governmental and regulatory policy changes; the outcomes of existing or future contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; damage to our reputation resulting from adverse publicity, regulatory actions, litigation, operational failures, and the failure to meet client expectations and other facts; the transition from LIBOR to SOFR; changes in the national and local economies; unstable political and economic environments; disease outbreaks, such as the COVID-19 pandemic or similar public health threats, and measures implemented to combat them; and other factors, including those expressed as 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. Investors are cautioned not to place undue reliance on any forward-looking statements contained herein.
FOR FURTHER INFORMATION:
| Robert B. Kaminski, Jr. President and CEO 616-726-1502 rkaminski@mercbank.com | Charles Christmas Executive Vice President and CFO 616-726-1202 cchristmas@mercbank.com | |
| Mercantile Bank Corporation | |||||||||
| Fourth Quarter 2023 Results | |||||||||
| MERCANTILE BANK CORPORATION | |||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||
| (Unaudited) | |||||||||
| DECEMBER 31, | DECEMBER 31, | DECEMBER 31, | |||||||
| 2023 | 2022 | 2021 | |||||||
| ASSETS | |||||||||
| Cash and due from banks | $ | 70,408,000 | $ | 61,894,000 | $ | 59,405,000 | |||
| Other interest-earning assets | 60,125,000 | 34,878,000 | 915,755,000 | ||||||
| Total cash and cash equivalents | 130,533,000 | 96,772,000 | 975,160,000 | ||||||
| Securities available for sale | 617,092,000 | 602,936,000 | 592,743,000 | ||||||
| Federal Home Loan Bank stock | 21,513,000 | 17,721,000 | 18,002,000 | ||||||
| Mortgage loans held for sale | 18,607,000 | 3,565,000 | 16,117,000 | ||||||
| Loans | 4,303,758,000 | 3,916,619,000 | 3,453,459,000 | ||||||
| Allowance for credit losses | (49,914,000 | ) | (42,246,000 | ) | (35,363,000 | ) | |||
| Loans, net | 4,253,844,000 | 3,874,373,000 | 3,418,096,000 | ||||||
| Premises and equipment, net | 50,928,000 | 51,476,000 | 57,298,000 | ||||||
| Bank owned life insurance | 85,668,000 | 80,727,000 | 75,242,000 | ||||||
| Goodwill | 49,473,000 | 49,473,000 | 49,473,000 | ||||||
| Other assets | 125,566,000 | 95,576,000 | 55,618,000 | ||||||
| Total assets | $ | 5,353,224,000 | $ | 4,872,619,000 | $ | 5,257,749,000 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
| Deposits: | |||||||||
| Noninterest-bearing | $ | 1,247,640,000 | $ | 1,604,750,000 | $ | 1,677,952,000 | |||
| Interest-bearing | 2,653,278,000 | 2,108,061,000 | 2,405,241,000 | ||||||
| Total deposits | 3,900,918,000 | 3,712,811,000 | 4,083,193,000 | ||||||
| Securities sold under agreements to repurchase | 229,734,000 | 194,340,000 | 197,463,000 | ||||||
| Federal Home Loan Bank advances | 467,910,000 | 308,263,000 | 374,000,000 | ||||||
| Subordinated debentures | 49,644,000 | 48,958,000 | 48,244,000 | ||||||
| Subordinated notes | 88,971,000 | 88,628,000 | 73,646,000 | ||||||
| Accrued interest and other liabilities | 93,902,000 | 78,211,000 | 24,644,000 | ||||||
| Total liabilities | 4,831,079,000 | 4,431,211,000 | 4,801,190,000 | ||||||
| SHAREHOLDERS' EQUITY | |||||||||
| Common stock | 295,106,000 | 290,436,000 | 285,752,000 | ||||||
| Retained earnings | 277,526,000 | 216,313,000 | 174,536,000 | ||||||
| Accumulated other comprehensive income/(loss) | (50,487,000 | ) | (65,341,000 | ) | (3,729,000 | ) | |||
| Total shareholders' equity | 522,145,000 | 441,408,000 | 456,559,000 | ||||||
| Total liabilities and shareholders' equity | $ | 5,353,224,000 | $ | 4,872,619,000 | $ | 5,257,749,000 | |||
| Mercantile Bank Corporation | ||||||||||||||||
| Fourth Quarter 2023 Results | ||||||||||||||||
| MERCANTILE BANK CORPORATION | ||||||||||||||||
| CONSOLIDATED REPORTS OF INCOME | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| THREE MONTHS ENDED | THREE MONTHS ENDED | TWELVE MONTHS ENDED | TWELVE MONTHS ENDED | |||||||||||||
| December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||||||
| INTEREST INCOME | ||||||||||||||||
| Loans, including fees | $ | 68,876,000 | $ | 53,787,000 | $ | 253,108,000 | $ | 166,848,000 | ||||||||
| Investment securities | 3,312,000 | 2,841,000 | 12,704,000 | 10,337,000 | ||||||||||||
| Other interest-earning assets | 1,615,000 | 1,650,000 | 5,546,000 | 4,654,000 | ||||||||||||
| Total interest income | 73,803,000 | 58,278,000 | 271,358,000 | 181,839,000 | ||||||||||||
| INTEREST EXPENSE | ||||||||||||||||
| Deposits | 19,015,000 | 4,040,000 | 55,444,000 | 10,037,000 | ||||||||||||
| Short-term borrowings | 781,000 | 141,000 | 2,847,000 | 294,000 | ||||||||||||
| Federal Home Loan Bank advances | 3,252,000 | 1,595,000 | 11,367,000 | 7,125,000 | ||||||||||||
| Other borrowed money | 2,106,000 | 1,845,000 | 8,155,000 | 6,139,000 | ||||||||||||
| Total interest expense | 25,154,000 | 7,621,000 | 77,813,000 | 23,595,000 | ||||||||||||
| Net interest income | 48,649,000 | 50,657,000 | 193,545,000 | 158,244,000 | ||||||||||||
| Provision for credit losses | 1,800,000 | 3,050,000 | 7,700,000 | 6,550,000 | ||||||||||||
| Net interest income after | ||||||||||||||||
| provision for credit losses | 46,849,000 | 47,607,000 | 185,845,000 | 151,694,000 | ||||||||||||
| NONINTEREST INCOME | ||||||||||||||||
| Service charges on accounts | 1,543,000 | 1,463,000 | 4,954,000 | 5,952,000 | ||||||||||||
| Mortgage banking income | 1,766,000 | 1,673,000 | 7,595,000 | 8,664,000 | ||||||||||||
| Credit and debit card income | 2,197,000 | 2,115,000 | 8,914,000 | 8,216,000 | ||||||||||||
| Interest rate swap income | 1,224,000 | 1,141,000 | 3,946,000 | 3,488,000 | ||||||||||||
| Payroll services | 601,000 | 543,000 | 2,509,000 | 2,178,000 | ||||||||||||
| Earnings on bank owned life insurance | 276,000 | 368,000 | 1,500,000 | 1,678,000 | ||||||||||||
| Gain on sale of other real estate owned | 28,000 | 0 | 419,000 | 0 | ||||||||||||
| Other income | 665,000 | 502,000 | 2,306,000 | 1,901,000 | ||||||||||||
| Total noninterest income | 8,300,000 | 7,805,000 | 32,143,000 | 32,077,000 | ||||||||||||
| NONINTEREST EXPENSE | ||||||||||||||||
| Salaries and benefits | 18,400,000 | 17,282,000 | 68,801,000 | 65,124,000 | ||||||||||||
| Occupancy | 2,521,000 | 2,194,000 | 9,150,000 | 8,362,000 | ||||||||||||
| Furniture and equipment | 871,000 | 792,000 | 3,464,000 | 3,614,000 | ||||||||||||
| Data processing costs | 2,537,000 | 3,156,000 | 11,618,000 | 12,359,000 | ||||||||||||
| Charitable foundation contributions | 250,000 | 1,005,000 | 666,000 | 1,514,000 | ||||||||||||
| Other expense | 5,361,000 | 4,112,000 | 21,590,000 | 17,008,000 | ||||||||||||
| Total noninterest expense | 29,940,000 | 28,541,000 | 115,289,000 | 107,981,000 | ||||||||||||
| Income before federal income | ||||||||||||||||
| tax expense | 25,209,000 | 26,871,000 | 102,699,000 | 75,790,000 | ||||||||||||
| Federal income tax expense | 5,179,000 | 5,068,000 | 20,482,000 | 14,727,000 | ||||||||||||
| Net Income | $ | 20,030,000 | $ | 21,803,000 | $ | 82,217,000 | $ | 61,063,000 | ||||||||
| Basic earnings per share | ||||||||||||||||
| Diluted earnings per share | ||||||||||||||||
| Average basic shares outstanding | 16,044,223 | 15,887,983 | 16,015,678 | 15,859,889 | ||||||||||||
| Average diluted shares outstanding | 16,044,223 | 15,887,983 | 16,015,678 | 15,859,901 | ||||||||||||
| Mercantile Bank Corporation | |||||||||||||||||||||
| Fourth Quarter 2023 Results | |||||||||||||||||||||
| MERCANTILE BANK CORPORATION | |||||||||||||||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| Quarterly | Year-To-Date | ||||||||||||||||||||
| (dollars in thousands except per share data) | 2023 | 2023 | 2023 | 2023 | 2022 | ||||||||||||||||
| 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | 2023 | 2022 | |||||||||||||||
| EARNINGS | |||||||||||||||||||||
| Net interest income | $ | 48,649 | 48,961 | 47,551 | 48,384 | 50,657 | 193,545 | 158,244 | |||||||||||||
| Provision for credit losses | $ | 1,800 | 3,300 | 2,000 | 600 | 3,050 | 7,700 | 6,550 | |||||||||||||
| Noninterest income | $ | 8,300 | 9,246 | 7,645 | 6,952 | 7,805 | 32,143 | 32,077 | |||||||||||||
| Noninterest expense | $ | 29,940 | 28,920 | 27,829 | 28,600 | 28,541 | 115,289 | 107,981 | |||||||||||||
| Net income before federal income | |||||||||||||||||||||
| tax expense | $ | 25,209 | 25,987 | 25,367 | 26,136 | 26,871 | 102,699 | 75,790 | |||||||||||||
| Net income | $ | 20,030 | 20,855 | 20,357 | 20,975 | 21,803 | 82,217 | 61,063 | |||||||||||||
| Basic earnings per share | $ | 1.25 | 1.30 | 1.27 | 1.31 | 1.37 | 5.13 | 3.85 | |||||||||||||
| Diluted earnings per share | $ | 1.25 | 1.30 | 1.27 | 1.31 | 1.37 | 5.13 | 3.85 | |||||||||||||
| Average basic shares outstanding | 16,044,223 | 16,018,419 | 16,003,372 | 15,996,138 | 15,887,983 | 16,015,678 | 15,859,889 | ||||||||||||||
| Average diluted shares outstanding | 16,044,223 | 16,018,419 | 16,003,372 | 15,996,138 | 15,887,983 | 16,015,678 | 15,859,901 | ||||||||||||||
| PERFORMANCE RATIOS | |||||||||||||||||||||
| Return on average assets | |||||||||||||||||||||
| Return on average equity | |||||||||||||||||||||
| Net interest margin (fully tax-equivalent) | |||||||||||||||||||||
| Efficiency ratio | |||||||||||||||||||||
| Full-time equivalent employees | 651 | 643 | 665 | 633 | 630 | 651 | 630 | ||||||||||||||
| YIELD ON ASSETS / COST OF FUNDS | |||||||||||||||||||||
| Yield on loans | |||||||||||||||||||||
| Yield on securities | |||||||||||||||||||||
| Yield on other interest-earning assets | |||||||||||||||||||||
| Yield on total earning assets | |||||||||||||||||||||
| Yield on total assets | |||||||||||||||||||||
| Cost of deposits | |||||||||||||||||||||
| Cost of borrowed funds | |||||||||||||||||||||
| Cost of interest-bearing liabilities | |||||||||||||||||||||
| Cost of funds (total earning assets) | |||||||||||||||||||||
| Cost of funds (total assets) | |||||||||||||||||||||
| MORTGAGE BANKING ACTIVITY | |||||||||||||||||||||
| Total mortgage loans originated | $ | 88,187 | 108,602 | 117,563 | 71,991 | 90,794 | 386,343 | 613,779 | |||||||||||||
| Purchase mortgage loans originated | $ | 75,365 | 93,520 | 100,941 | 56,728 | 79,604 | 326,554 | 479,334 | |||||||||||||
| Refinance mortgage loans originated | $ | 12,822 | 15,082 | 16,622 | 15,263 | 11,190 | 59,789 | 134,445 | |||||||||||||
| Total saleable mortgage loans | $ | 59,135 | 69,305 | 50,734 | 24,904 | 29,948 | 204,078 | 217,763 | |||||||||||||
| Income on sale of mortgage loans | $ | 1,487 | 2,386 | 1,570 | 950 | 1,401 | 6,393 | 8,135 | |||||||||||||
| CAPITAL | |||||||||||||||||||||
| Tangible equity to tangible assets | |||||||||||||||||||||
| Tier 1 leverage capital ratio | |||||||||||||||||||||
| Common equity risk-based capital ratio | |||||||||||||||||||||
| Tier 1 risk-based capital ratio | |||||||||||||||||||||
| Total risk-based capital ratio | |||||||||||||||||||||
| Tier 1 capital | $ | 570,730 | 554,634 | 537,802 | 520,918 | 503,855 | 570,730 | 503,855 | |||||||||||||
| Tier 1 plus tier 2 capital | $ | 710,905 | 692,252 | 671,323 | 652,509 | 634,729 | 710,905 | 634,729 | |||||||||||||
| Total risk-weighted assets | $ | 5,192,970 | 4,872,424 | 4,784,428 | 4,623,631 | 4,533,091 | 5,192,970 | 4,533,091 | |||||||||||||
| Book value per common share | $ | 32.38 | 30.16 | 29.89 | 29.21 | 27.60 | 32.38 | 27.60 | |||||||||||||
| Tangible book value per common share | $ | 29.31 | 27.06 | 26.78 | 26.09 | 24.47 | 29.31 | 24.47 | |||||||||||||
| Cash dividend per common share | $ | 0.34 | 0.34 | 0.33 | 0.33 | 0.32 | 1.34 | 1.26 | |||||||||||||
| ASSET QUALITY | |||||||||||||||||||||
| Gross loan charge-offs | $ | 53 | 243 | 461 | 106 | 72 | 863 | 292 | |||||||||||||
| Recoveries | $ | 160 | 230 | 305 | 137 | 149 | 832 | 1,025 | |||||||||||||
| Net loan charge-offs (recoveries) | $ | (107 | ) | 13 | 156 | (31 | ) | (77 | ) | 31 | (733 | ) | |||||||||
| Net loan charge-offs to average loans | ( | ) | < | < ( | ) | ( | ) | < | ( | ) | |||||||||||
| Allowance for credit losses | $ | 49,914 | 48,008 | 44,721 | 42,877 | 42,246 | 49,914 | 42,246 | |||||||||||||
| Allowance to loans | |||||||||||||||||||||
| Nonperforming loans | $ | 3,415 | 5,889 | 2,099 | 7,782 | 7,728 | 3,415 | 7,728 | |||||||||||||
| Other real estate/repossessed assets | $ | 200 | 51 | 661 | 661 | 0 | 200 | 0 | |||||||||||||
| Nonperforming loans to total loans | |||||||||||||||||||||
| Nonperforming assets to total assets | |||||||||||||||||||||
| NONPERFORMING ASSETS - COMPOSITION | |||||||||||||||||||||
| Residential real estate: | |||||||||||||||||||||
| Land development | $ | 1 | 1 | 2 | 8 | 29 | 1 | 29 | |||||||||||||
| Construction | $ | 0 | 0 | 0 | 0 | 124 | 0 | 124 | |||||||||||||
| Owner occupied / rental | $ | 3,095 | 1,913 | 1,793 | 1,952 | 1,304 | 3,095 | 1,304 | |||||||||||||
| Commercial real estate: | |||||||||||||||||||||
| Land development | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
| Construction | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
| Owner occupied | $ | 270 | 738 | 716 | 829 | 248 | 270 | 248 | |||||||||||||
| Non-owner occupied | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
| Non-real estate: | |||||||||||||||||||||
| Commercial assets | $ | 249 | 3,288 | 249 | 5,654 | 6,023 | 249 | 6,023 | |||||||||||||
| Consumer assets | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
| Total nonperforming assets | $ | 3,615 | 5,940 | 2,760 | 8,443 | 7,728 | 3,615 | 7,728 | |||||||||||||
| NONPERFORMING ASSETS - RECON | |||||||||||||||||||||
| Beginning balance | $ | 5,940 | 2,760 | 8,443 | 7,728 | 1,416 | 7,728 | 2,468 | |||||||||||||
| Additions | $ | 2,166 | 4,163 | 273 | 1,323 | 6,368 | 7,925 | 6,770 | |||||||||||||
| Return to performing status | $ | 0 | 0 | 0 | (31 | ) | 0 | (31 | ) | (373 | ) | ||||||||||
| Principal payments | $ | (4,402 | ) | (166 | ) | (5,526 | ) | (515 | ) | (56 | ) | (10,609 | ) | (1,042 | ) | ||||||
| Sale proceeds | $ | (51 | ) | (661 | ) | 0 | 0 | 0 | (712 | ) | 0 | ||||||||||
| Loan charge-offs | $ | (38 | ) | (156 | ) | (430 | ) | (62 | ) | 0 | (686 | ) | (95 | ) | |||||||
| Valuation write-downs | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
| Ending balance | $ | 3,615 | 5,940 | 2,760 | 8,443 | 7,728 | 3,615 | 7,728 | |||||||||||||
| LOAN PORTFOLIO COMPOSITION | |||||||||||||||||||||
| Commercial: | |||||||||||||||||||||
| Commercial & industrial | $ | 1,254,586 | 1,184,993 | 1,229,588 | 1,190,982 | 1,201,672 | 1,254,586 | 1,201,672 | |||||||||||||
| Land development & construction | $ | 74,752 | 72,921 | 72,682 | 66,233 | 61,873 | 74,752 | 61,873 | |||||||||||||
| Owner occupied comm'l R/E | $ | 717,667 | 671,083 | 659,201 | 630,186 | 639,192 | 717,667 | 639,192 | |||||||||||||
| Non-owner occupied comm'l R/E | $ | 1,035,684 | 1,000,411 | 957,221 | 975,735 | 979,214 | 1,035,684 | 979,214 | |||||||||||||
| Multi-family & residential rental | $ | 332,609 | 308,229 | 287,285 | 294,825 | 266,468 | 332,609 | 266,468 | |||||||||||||
| Total commercial | $ | 3,415,298 | 3,237,637 | 3,205,977 | 3,157,961 | 3,148,419 | 3,415,298 | 3,148,419 | |||||||||||||
| Retail: | |||||||||||||||||||||
| 1-4 family mortgages | $ | 837,407 | 816,849 | 795,661 | 757,006 | 716,670 | 837,407 | 716,670 | |||||||||||||
| Other consumer | $ | 51,053 | 49,890 | 50,205 | 50,561 | 51,530 | 51,053 | 51,530 | |||||||||||||
| Total retail | $ | 888,460 | 866,739 | 845,866 | 807,567 | 768,200 | 888,460 | 768,200 | |||||||||||||
| Total loans | $ | 4,303,758 | 4,104,376 | 4,051,843 | 3,965,528 | 3,916,619 | 4,303,758 | 3,916,619 | |||||||||||||
| END OF PERIOD BALANCES | |||||||||||||||||||||
| Loans | $ | 4,303,758 | 4,104,376 | 4,051,843 | 3,965,528 | 3,916,619 | 4,303,758 | 3,916,619 | |||||||||||||
| Securities | $ | 638,605 | 613,818 | 630,485 | 637,694 | 620,657 | 638,605 | 620,657 | |||||||||||||
| Other interest-earning assets | $ | 60,125 | 201,436 | 138,663 | 10,787 | 34,878 | 60,125 | 34,878 | |||||||||||||
| Total earning assets (before allowance) | $ | 5,002,488 | 4,919,630 | 4,820,991 | 4,614,009 | 4,572,154 | 5,002,488 | 4,572,154 | |||||||||||||
| Total assets | $ | 5,353,224 | 5,251,012 | 5,137,587 | 4,895,874 | 4,872,619 | 5,353,224 | 4,872,619 | |||||||||||||
| Noninterest-bearing deposits | $ | 1,247,640 | 1,309,672 | 1,371,633 | 1,376,782 | 1,604,750 | 1,247,640 | 1,604,750 | |||||||||||||
| Interest-bearing deposits | $ | 2,653,278 | 2,591,063 | 2,385,156 | 2,221,236 | 2,108,061 | 2,653,278 | 2,108,061 | |||||||||||||
| Total deposits | $ | 3,900,918 | 3,900,735 | 3,756,789 | 3,598,018 | 3,712,811 | 3,900,918 | 3,712,811 | |||||||||||||
| Total borrowed funds | $ | 837,335 | 761,431 | 826,558 | 761,509 | 641,295 | 837,335 | 641,295 | |||||||||||||
| Total interest-bearing liabilities | $ | 3,490,613 | 3,352,494 | 3,211,714 | 2,982,745 | 2,749,356 | 3,490,613 | 2,749,356 | |||||||||||||
| Shareholders' equity | $ | 522,145 | 483,211 | 478,702 | 467,372 | 441,408 | 522,145 | 441,408 | |||||||||||||
| AVERAGE BALANCES | |||||||||||||||||||||
| Loans | $ | 4,184,070 | 4,054,279 | 4,017,690 | 3,928,329 | 3,887,967 | 4,046,815 | 3,706,505 | |||||||||||||
| Securities | $ | 618,517 | 626,714 | 634,607 | 627,628 | 606,390 | 626,842 | 613,365 | |||||||||||||
| Other interest-earning assets | $ | 118,996 | 208,932 | 64,958 | 31,081 | 179,507 | 106,515 | 445,236 | |||||||||||||
| Total earning assets (before allowance) | $ | 4,921,583 | 4,889,925 | 4,717,255 | 4,587,038 | 4,673,864 | 4,780,172 | 4,765,106 | |||||||||||||
| Total assets | $ | 5,224,238 | 5,180,847 | 4,988,413 | 4,855,877 | 4,949,868 | 5,063,693 | 5,054,792 | |||||||||||||
| Noninterest-bearing deposits | $ | 1,281,201 | 1,359,238 | 1,361,901 | 1,491,477 | 1,722,632 | 1,372,840 | 1,694,857 | |||||||||||||
| Interest-bearing deposits | $ | 2,600,703 | 2,466,834 | 2,278,877 | 2,184,406 | 2,077,547 | 2,384,075 | 2,196,026 | |||||||||||||
| Total deposits | $ | 3,881,904 | 3,826,072 | 3,640,778 | 3,675,883 | 3,800,179 | 3,756,915 | 3,890,883 | |||||||||||||
| Total borrowed funds | $ | 773,491 | 806,376 | 827,105 | 676,724 | 667,864 | 771,286 | 692,434 | |||||||||||||
| Total interest-bearing liabilities | $ | 3,374,194 | 3,273,210 | 3,105,982 | 2,861,130 | 2,745,411 | 3,155,361 | 2,888,460 | |||||||||||||
| Shareholders' equity | $ | 495,431 | 484,624 | 473,983 | 453,524 | 426,897 | 477,027 | 433,858 | |||||||||||||
FAQ
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