Macatawa Bank Corporation Reports Fourth Quarter and Full Year 2023 Results
- None.
- Decrease in net income for the fourth quarter of 2023
- Decrease in net interest margin
- Decrease in deposit portfolio balances
Insights
The reported 24% increase in full-year net income for Macatawa Bank Corporation reflects a robust financial performance, indicative of effective management and potentially favorable market conditions. The growth in net income is a positive signal to investors and could influence the company's stock positively as it demonstrates profitability and operational efficiency. However, the decrease in net income for Q4 2023 compared to the same period in the previous year might raise concerns about the bank's growth momentum and the sustainability of its earnings growth.
The non-recurring costs associated with the CEO's retirement, which impacted Q4 net income, represent a one-time expense that investors should consider when evaluating the bank's ongoing operational costs. The decrease in net interest margin suggests a tightening of the interest spread, which could be a result of the rising interest rate environment. This could potentially pressure future earnings if not managed effectively, despite the reported loan portfolio growth.
The bank's loan-to-deposit ratio at 55% indicates a conservative approach to lending, providing a buffer against potential loan defaults. However, this could also suggest that the bank is not fully utilizing its deposit base to generate interest income, which might be seen as a missed opportunity for revenue growth. The bank's strong capital position, with $143 million in excess capital, suggests a robust balance sheet that could support future growth or buffer against economic downturns.
Macatawa Bank Corporation's focus on loan portfolio growth, particularly in the commercial sector, is indicative of an aggressive strategy to capitalize on business expansion opportunities within its market. The reported annualized growth rate of 14.6% for the loan portfolio in Q4 2023 is a strong indicator of the bank's market penetration and lending capabilities. The bank's strategic positioning, with nearly $300 million of investments maturing over the next twelve months, provides an opportunity to reinvest in higher-yielding assets, potentially increasing interest income.
The decrease in deposit portfolio balances due to seasonal fluctuations is not unusual for financial institutions and may not be a significant concern for long-term stability. However, the shift in deposit types to higher interest-bearing accounts could impact the bank's cost of funds and net interest margin in a rising rate environment. The reported strong credit quality metrics with non-performing assets totaling less than $1,000 and only one delinquent loan suggest a low risk of credit losses, which is favorable for the bank's risk profile and may reassure investors about the soundness of the bank's lending practices.
The financial results of Macatawa Bank Corporation must be contextualized within the broader economic environment, which includes the impact of monetary policy decisions on interest rates. The bank's decreasing net interest margin can be attributed to the broader trend of rising interest rates, which typically leads to higher costs for deposits and can squeeze margins for financial institutions. The bank's strategy to shift originations to hold in the portfolio given the relatively high interest rates is a prudent response to the current economic climate, as it may protect interest income in a scenario of further rate hikes.
The bank's liquidity and capital position are particularly relevant in light of economic uncertainties. With a strong capital base and high liquidity, Macatawa Bank is well-equipped to navigate potential economic headwinds. The flexibility provided by a substantial amount of overnight funds and maturing investments allows the bank to respond to changes in the economic landscape and take advantage of growth opportunities as they arise. This strategic positioning is crucial for maintaining stability and supporting sustained growth in uncertain economic conditions.
HOLLAND, Mich., Jan. 25, 2024 (GLOBE NEWSWIRE) -- Macatawa Bank Corporation (NASDAQ: MCBC), the holding company for Macatawa Bank (collectively, the “Company”), today announced its results for the fourth quarter and full year 2023.
- Full year net income of
$43.2 million in 2023 – a24% increase over$34.7 million in the prior year - Net income of
$9.5 million in fourth quarter 2023 – a decrease from$12.1 million earned in fourth quarter 2022 and from$11.4 million earned in third quarter 2023 - Fourth quarter 2023 net income impacted by
$1.3 million in non-recurring costs related to CEO retirement – after tax impact of$1.0 million - Net interest margin decreased to
3.28% in fourth quarter 2023 versus3.34% in fourth quarter 2022 and3.35% in third quarter 2023 - Continued loan portfolio growth –
$47.1 million , or14.6% annualized growth rate, for fourth quarter 2023, and$160.6 million , or13.6% , in the last 12 months - Deposit portfolio balances decreased
$29.9 million in the fourth quarter 2023 due to seasonal fluctuations in municipal deposits - Strong credit quality metrics – non-performing assets total less than
$1,000 , allowance to total loans coverage of1.30% , and just one delinquent loan at December 31, 2023 - Provision for credit losses of
$400,000 in fourth quarter 2023 due to loan growth - Accumulated Other Comprehensive Income (AOCI) improved by
$10.6 million in fourth quarter 2023 - Robust capital position -
$143 million in excess capital over well-capitalized minimums
The Company reported net income of
"We are pleased to report strong profitability and balance sheet results for the fourth quarter 2023,” said Jon Swets, President and CEO of the Company. “We ended the year with strong loan portfolio growth, which sets us up well heading into 2024. We maintained our excellent asset quality, having just one loan past due more than 30 days at December 31, 2023. On the funding side of the balance sheet we continue to see shifting in our deposits to higher interest bearing types which has a downward impact on net interest margin, but the pace of this shifting has clearly slowed in recent months.”
Mr. Swets concluded: "We believe our balance sheet is well positioned in the current environment. In addition to the
Operating Results
Net interest income for the fourth quarter 2023 totaled
Non-interest income increased
Non-interest expense was
| Q4 2023 | Q4 2023 | |||||||
| to | to | |||||||
| Dollars in 000s | Q3 2023 | Q4 2022 | ||||||
| Salaries and other compensation | $ | (97 | ) | $ | (49 | ) | ||
| Executive retirement costs | 1,261 | 1,261 | ||||||
| Salary deferral from commercial loans | 46 | (6 | ) | |||||
| Bonus accrual | — | (81 | ) | |||||
| Mortgage production – variable comp | (8 | ) | 63 | |||||
| Brokerage – variable comp | 17 | (79 | ) | |||||
| 401k matching contributions | (8 | ) | 18 | |||||
| Medical insurance costs | (29 | ) | 140 | |||||
| Total change in salaries and benefits | $ | 1,182 | $ | 1,267 | ||||
Occupancy expenses were down
Federal income tax expense was
Asset Quality
The Company adopted ASU 2016-13, Financial Instruments – Credit Losses, commonly referred to as “CECL” on January 1, 2023. The impact on adoption was an increase to the allowance for credit losses of
The allowance for credit losses of
At December 31, 2023, the Company's nonperforming loans were
A break-down of non-performing loans is shown in the table below.
| Dec 31, | Sept 30, | June 30, | Mar 31, | Dec 31, | ||||||||||||||||
| Dollars in 000s | 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||
| Commercial Real Estate | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Commercial and Industrial | — | — | — | — | — | |||||||||||||||
| Total Commercial Loans | — | — | — | — | — | |||||||||||||||
| Residential Mortgage Loans | 1 | 1 | 72 | 75 | 78 | |||||||||||||||
| Consumer Loans | — | — | — | — | — | |||||||||||||||
| Total Non-Performing Loans | $ | 1 | $ | 1 | $ | 72 | $ | 75 | $ | 78 | ||||||||||
A break-down of non-performing assets is shown in the table below.
| Dec 31, | Sept 30, | June 30, | Mar 31, | Dec 31, | ||||||||||||||||
| Dollars in 000s | 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||
| Non-Performing Loans | $ | 1 | $ | 1 | $ | 72 | $ | 75 | $ | 78 | ||||||||||
| Other Repossessed Assets | — | — | — | — | — | |||||||||||||||
| Other Real Estate Owned | — | — | — | — | 2,343 | |||||||||||||||
| Total Non-Performing Assets | $ | 1 | $ | 1 | $ | 72 | $ | 75 | $ | 2,421 | ||||||||||
Balance Sheet, Liquidity and Capital
Total assets were
The Company’s investment securities portfolio primarily consists of U.S. treasury and agency securities, agency mortgage backed securities and various municipal securities. Total securities were
Total loans were
Commercial loans increased by
The composition of the commercial loan portfolio is shown in the table below:
| Dec 31, | Sept 30, | June 30, | Mar 31, | Dec 31, | ||||||||||||||||
| Dollars in 000s | 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||
| Construction and Development | $ | 128,277 | $ | 120,892 | $ | 116,124 | $ | 120,268 | $ | 116,715 | ||||||||||
| Other Commercial Real Estate | 456,822 | 446,393 | 443,489 | 423,080 | 420,888 | |||||||||||||||
| Commercial Loans Secured by Real Estate | 585,099 | 567,285 | 559,613 | 543,348 | 537,603 | |||||||||||||||
| Commercial and Industrial | 506,974 | 488,224 | 489,273 | 473,354 | 441,716 | |||||||||||||||
| Total Commercial Loans | $ | 1,092,073 | $ | 1,055,509 | $ | 1,048,886 | $ | 1,016,702 | $ | 979,319 | ||||||||||
Total deposits were
Macatawa’s deposit base is primarily made up of many small accounts, and balances at December 31, 2023 were comprised of
Noninterest bearing demand deposits were down
Management has actively pursued initiatives to maintain a strong liquidity position. The Company has had no brokered deposits on balance sheet since December 2011 and continues to maintain significant on-balance sheet liquidity. At December 31, 2023, balances held in federal funds sold and other short-term investments amounted to
The Company's total risk-based regulatory capital ratio at December 31, 2023 was consistent with the ratio at September 30, 2023 and December 31, 2022. Macatawa Bank’s risk-based regulatory capital ratios continue to be at levels considerably above those required to be categorized as “well capitalized” under applicable regulatory capital guidelines. As such, the Bank was categorized as "well capitalized" with
About Macatawa Bank
Headquartered in Holland, Michigan, Macatawa Bank offers a full range of banking, retail and commercial lending, wealth management and ecommerce services to individuals, businesses and governmental entities from a network of 26 full-service branches located throughout communities in Kent, Ottawa and northern Allegan counties. The bank is recognized for its local management team and decision making, along with providing customers excellent service, a rewarding experience and superior financial products. Macatawa Bank has been recognized for thirteen years as one of “West Michigan’s 101 Best and Brightest Companies to Work For”. For more information, visit www.macatawabank.com.
| CAUTIONARY STATEMENT: This press release contains forward-looking statements that are based on management's current beliefs, expectations, assumptions, estimates, plans and intentions. Forward-looking statements are identifiable by words or phrases such as “anticipates,” "believe," "expect," "may," "should," "will," ”intend,” "continue," "improving," "additional," "focus," "forward," "future," "efforts," "strategy," "momentum," "positioned," and other similar words or phrases. 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 trends in our key operating metrics and financial performance, future levels of earnings and profitability, future levels of earning assets, future asset quality, future growth, future interest rates, future net interest margin, future economic conditions, and future levels of unrealized gains or losses in the investment securities portfolio. All statements with references to future time periods are forward-looking. Management's determination of the provision and allowance for credit losses, the appropriate carrying value of intangible assets (including deferred tax assets) and other real estate owned 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. Our ability to sell other real estate owned at its carrying value or at all, reduce non-performing asset expenses, utilize our deferred tax asset, successfully implement new programs and initiatives, increase efficiencies, maintain our current level of deposits and other sources of funding, maintain liquidity, respond to declines in collateral values and credit quality, improve profitability, and produce consistent core earnings is not entirely within our control and is not assured. The future effect of changes in the real estate, financial and credit markets, interest rates and the national and regional economy on the banking industry, generally, and Macatawa Bank Corporation, specifically, are also inherently uncertain. 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, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed in or implied by 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, 2022. 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) | |||||||||||||||||||||||||||||||
| Quarterly | Twelve Months Ended | ||||||||||||||||||||||||||||||
| 4th Qtr | 3rd Qtr | 4th Qtr | December 31 | ||||||||||||||||||||||||||||
| EARNINGS SUMMARY | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||
| Total interest income | $ | 29,638 | $ | 29,787 | $ | 25,454 | $ | 113,811 | $ | 74,906 | |||||||||||||||||||||
| Total interest expense | 8,197 | 7,543 | 2,587 | 26,364 | 4,760 | ||||||||||||||||||||||||||
| Net interest income | 21,441 | 22,244 | 22,867 | 87,447 | 70,146 | ||||||||||||||||||||||||||
| Provision for credit losses | 400 | (150 | ) | 375 | 550 | (1,125 | ) | ||||||||||||||||||||||||
| Net interest income after provision for credit losses | 21,041 | 22,394 | 22,492 | 86,897 | 71,271 | ||||||||||||||||||||||||||
| NON-INTEREST INCOME | |||||||||||||||||||||||||||||||
| Deposit service charges | 1,036 | 1,061 | 1,077 | 4,109 | 4,769 | ||||||||||||||||||||||||||
| Net gains on mortgage loans | 28 | 5 | 32 | 65 | 706 | ||||||||||||||||||||||||||
| Trust fees | 1,055 | 1,109 | 990 | 4,332 | 4,143 | ||||||||||||||||||||||||||
| Other | 2,565 | 2,441 | 2,936 | 9,935 | 10,401 | ||||||||||||||||||||||||||
| Total non-interest income | 4,684 | 4,616 | 5,035 | 18,441 | 20,019 | ||||||||||||||||||||||||||
| NON-INTEREST EXPENSE | |||||||||||||||||||||||||||||||
| Salaries and benefits | 8,131 | 6,949 | 6,864 | 28,620 | 26,194 | ||||||||||||||||||||||||||
| Occupancy | 948 | 1,024 | 968 | 4,208 | 4,200 | ||||||||||||||||||||||||||
| Furniture and equipment | 1,054 | 1,050 | 991 | 4,199 | 4,008 | ||||||||||||||||||||||||||
| FDIC assessment | 330 | 330 | 211 | 1,320 | 789 | ||||||||||||||||||||||||||
| Other | 3,501 | 3,436 | 3,414 | 13,244 | 13,035 | ||||||||||||||||||||||||||
| Total non-interest expense | 13,964 | 12,789 | 12,448 | 51,591 | 48,226 | ||||||||||||||||||||||||||
| Income before income tax | 11,761 | 14,221 | 15,079 | 53,747 | 43,064 | ||||||||||||||||||||||||||
| Income tax expense | 2,266 | 2,808 | 2,961 | 10,523 | 8,333 | ||||||||||||||||||||||||||
| Net income | $ | 9,495 | $ | 11,413 | $ | 12,118 | $ | 43,224 | $ | 34,731 | |||||||||||||||||||||
| Basic earnings per common share | $ | 0.28 | $ | 0.33 | $ | 0.35 | $ | 1.26 | $ | 1.01 | |||||||||||||||||||||
| Diluted earnings per common share | $ | 0.28 | $ | 0.33 | $ | 0.35 | $ | 1.26 | $ | 1.01 | |||||||||||||||||||||
| Return on average assets | 1.41 | % | 1.66 | % | 1.72 | % | 1.60 | % | 1.21 | % | |||||||||||||||||||||
| Return on average equity | 13.89 | % | 17.14 | % | 20.22 | % | 16.42 | % | 14.19 | % | |||||||||||||||||||||
| Net interest margin (fully taxable equivalent) | 3.28 | % | 3.35 | % | 3.34 | % | 3.36 | % | 2.59 | % | |||||||||||||||||||||
| Efficiency ratio | 53.45 | % | 47.61 | % | 44.61 | % | 48.72 | % | 53.49 | % | |||||||||||||||||||||
| BALANCE SHEET DATA | December 31 | September 30 | December 31 | ||||||||||||||||||||||||||||
| Assets | 2023 | 2023 | 2022 | ||||||||||||||||||||||||||||
| Cash and due from banks | $ | 32,317 | $ | 40,687 | $ | 51,215 | |||||||||||||||||||||||||
| Federal funds sold and other short-term investments | 418,035 | 469,786 | 703,955 | ||||||||||||||||||||||||||||
| Debt securities available for sale | 508,798 | 503,277 | 499,257 | ||||||||||||||||||||||||||||
| Debt securities held to maturity | 331,523 | 330,003 | 348,765 | ||||||||||||||||||||||||||||
| Federal Home Loan Bank Stock | 10,211 | 10,211 | 10,211 | ||||||||||||||||||||||||||||
| Loans held for sale | - | - | 215 | ||||||||||||||||||||||||||||
| Total loans | 1,338,386 | 1,291,290 | 1,177,748 | ||||||||||||||||||||||||||||
| Less allowance for credit losses | 17,442 | 17,001 | 15,285 | ||||||||||||||||||||||||||||
| Net loans | 1,320,944 | 1,274,289 | 1,162,463 | ||||||||||||||||||||||||||||
| Premises and equipment, net | 38,604 | 39,399 | 40,306 | ||||||||||||||||||||||||||||
| Bank-owned life insurance | 54,249 | 54,043 | 53,345 | ||||||||||||||||||||||||||||
| Other real estate owned | - | - | 2,343 | ||||||||||||||||||||||||||||
| Other assets | 34,018 | 38,015 | 34,844 | ||||||||||||||||||||||||||||
| Total Assets | $ | 2,748,699 | $ | 2,759,710 | $ | 2,906,919 | |||||||||||||||||||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||||||||||||||
| Noninterest-bearing deposits | $ | 643,035 | $ | 653,052 | $ | 834,879 | |||||||||||||||||||||||||
| Interest-bearing deposits | 1,772,695 | 1,792,534 | 1,780,263 | ||||||||||||||||||||||||||||
| Total deposits | 2,415,730 | 2,445,586 | 2,615,142 | ||||||||||||||||||||||||||||
| Other borrowed funds | 30,000 | 30,000 | 30,000 | ||||||||||||||||||||||||||||
| Long-term debt | - | - | - | ||||||||||||||||||||||||||||
| Other liabilities | 15,884 | 14,247 | 14,739 | ||||||||||||||||||||||||||||
| Total Liabilities | 2,461,614 | 2,489,833 | 2,659,881 | ||||||||||||||||||||||||||||
| Shareholders' equity | 287,085 | 269,877 | 247,038 | ||||||||||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 2,748,699 | $ | 2,759,710 | $ | 2,906,919 | |||||||||||||||||||||||||
| MACATAWA BANK CORPORATION | |||||||||||||||||||||||||||||||
| SELECTED CONSOLIDATED FINANCIAL DATA | |||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||
| (Dollars in thousands except per share information) | |||||||||||||||||||||||||||||||
| Quarterly | Year to Date | ||||||||||||||||||||||||||||||
| 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | |||||||||||||||||||||||||||
| 2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
| EARNINGS SUMMARY | |||||||||||||||||||||||||||||||
| Net interest income | $ | 21,441 | $ | 22,244 | $ | 21,146 | $ | 22,616 | $ | 22,867 | $ | 87,447 | $ | 70,146 | |||||||||||||||||
| Provision for credit losses | 400 | (150 | ) | 300 | - | 375 | 550 | (1,125 | ) | ||||||||||||||||||||||
| Total non-interest income | 4,684 | 4,616 | 4,613 | 4,528 | 5,035 | 18,441 | 20,019 | ||||||||||||||||||||||||
| Total non-interest expense | 13,964 | 12,789 | 12,673 | 12,165 | 12,448 | 51,591 | 48,226 | ||||||||||||||||||||||||
| Federal income tax expense | 2,266 | 2,808 | 2,474 | 2,975 | 2,961 | 10,523 | 8,333 | ||||||||||||||||||||||||
| Net income | $ | 9,495 | $ | 11,413 | $ | 10,312 | $ | 12,004 | $ | 12,118 | $ | 43,224 | $ | 34,731 | |||||||||||||||||
| Basic earnings per common share | $ | 0.28 | $ | 0.33 | $ | 0.30 | $ | 0.35 | $ | 0.35 | $ | 1.26 | $ | 1.01 | |||||||||||||||||
| Diluted earnings per common share | $ | 0.28 | $ | 0.33 | $ | 0.30 | $ | 0.35 | $ | 0.35 | $ | 1.26 | $ | 1.01 | |||||||||||||||||
| MARKET DATA | |||||||||||||||||||||||||||||||
| Book value per common share | $ | 8.35 | $ | 7.87 | $ | 7.69 | $ | 7.60 | $ | 7.20 | $ | 8.35 | $ | 7.20 | |||||||||||||||||
| Tangible book value per common share | $ | 8.35 | $ | 7.87 | $ | 7.69 | $ | 7.60 | $ | 7.20 | $ | 8.35 | $ | 7.20 | |||||||||||||||||
| Market value per common share | $ | 11.28 | $ | 8.96 | $ | 9.28 | $ | 10.22 | $ | 11.03 | $ | 11.28 | $ | 11.03 | |||||||||||||||||
| Average basic common shares | 34,325,743 | 34,291,487 | 34,292,179 | 34,297,221 | 34,277,839 | 34,301,650 | 34,259,604 | ||||||||||||||||||||||||
| Average diluted common shares | 34,325,743 | 34,291,487 | 34,292,179 | 34,297,221 | 34,277,839 | 34,301,650 | 34,259,604 | ||||||||||||||||||||||||
| Period end common shares | 34,361,562 | 34,291,487 | 34,291,487 | 34,292,294 | 34,298,640 | 34,361,562 | 34,298,640 | ||||||||||||||||||||||||
| PERFORMANCE RATIOS | |||||||||||||||||||||||||||||||
| Return on average assets | 1.41 | % | 1.66 | % | 1.57 | % | 1.74 | % | 1.72 | % | 1.60 | % | 1.21 | % | |||||||||||||||||
| Return on average equity | 13.89 | % | 17.14 | % | 15.70 | % | 19.19 | % | 20.22 | % | 16.42 | % | 14.19 | % | |||||||||||||||||
| Efficiency ratio | 53.45 | % | 47.61 | % | 49.20 | % | 44.82 | % | 44.61 | % | 48.72 | % | 53.49 | % | |||||||||||||||||
| Full-time equivalent employees (period end) | 314 | 313 | 322 | 317 | 318 | 314 | 318 | ||||||||||||||||||||||||
| YIELDS AND COST OF FUNDS RATIOS | |||||||||||||||||||||||||||||||
| Federal funds sold and other short-term investments | 5.41 | % | 5.36 | % | 5.05 | % | 4.58 | % | 3.72 | % | 5.07 | % | 1.53 | % | |||||||||||||||||
| Total securities (fully taxable equivalent) | 2.50 | % | 2.47 | % | 2.43 | % | 2.40 | % | 2.25 | % | 2.45 | % | 1.99 | % | |||||||||||||||||
| Commercial loans | 5.73 | % | 5.66 | % | 5.58 | % | 5.40 | % | 4.93 | % | 5.60 | % | 4.22 | % | |||||||||||||||||
| Residential mortgage loans | 4.41 | % | 4.20 | % | 3.93 | % | 3.73 | % | 3.53 | % | 4.09 | % | 3.36 | % | |||||||||||||||||
| Consumer loans | 8.15 | % | 8.00 | % | 7.63 | % | 7.20 | % | 6.22 | % | 7.74 | % | 4.88 | % | |||||||||||||||||
| Total loans | 5.65 | % | 5.57 | % | 5.47 | % | 5.28 | % | 4.83 | % | 5.50 | % | 4.16 | % | |||||||||||||||||
| Total yield on interest earning assets (fully taxable equivalent) | 4.54 | % | 4.48 | % | 4.31 | % | 4.15 | % | 3.72 | % | 4.37 | % | 2.73 | % | |||||||||||||||||
| Interest bearing demand deposits | 0.53 | % | 0.45 | % | 0.48 | % | 0.43 | % | 0.34 | % | 0.47 | % | 0.14 | % | |||||||||||||||||
| Savings and money market accounts | 1.97 | % | 1.90 | % | 1.64 | % | 1.35 | % | 0.73 | % | 1.71 | % | 0.28 | % | |||||||||||||||||
| Time deposits | 4.19 | % | 3.86 | % | 3.23 | % | 2.22 | % | 0.84 | % | 3.58 | % | 0.40 | % | |||||||||||||||||
| Total interest bearing deposits | 1.85 | % | 1.69 | % | 1.42 | % | 1.05 | % | 0.57 | % | 1.51 | % | 0.23 | % | |||||||||||||||||
| Total deposits | 1.35 | % | 1.21 | % | 1.01 | % | 0.74 | % | 0.38 | % | 1.07 | % | 0.15 | % | |||||||||||||||||
| Other borrowed funds | 2.08 | % | 2.08 | % | 2.08 | % | 2.08 | % | 2.08 | % | 2.08 | % | 1.96 | % | |||||||||||||||||
| Total average cost of funds on interest bearing liabilities | 1.86 | % | 1.69 | % | 1.43 | % | 1.07 | % | 0.60 | % | 1.52 | % | 0.28 | % | |||||||||||||||||
| Net interest margin (fully taxable equivalent) | 3.28 | % | 3.35 | % | 3.36 | % | 3.44 | % | 3.34 | % | 3.36 | % | 2.56 | % | |||||||||||||||||
| ASSET QUALITY | |||||||||||||||||||||||||||||||
| Gross charge-offs | $ | 31 | $ | 41 | $ | 22 | $ | 21 | $ | 23 | $ | 116 | $ | 164 | |||||||||||||||||
| Net charge-offs/(recoveries) | $ | (41 | ) | $ | (42 | ) | $ | (15 | ) | $ | (33 | ) | $ | (89 | ) | $ | (131 | ) | $ | (521 | ) | ||||||||||
| Net charge-offs to average loans (annualized) | -0.01 | % | -0.01 | % | -0.00 | % | -0.01 | % | -0.03 | % | -0.01 | % | -0.05 | % | |||||||||||||||||
| Nonperforming loans | $ | 1 | $ | 1 | $ | 72 | $ | 75 | $ | 78 | $ | 1 | $ | 78 | |||||||||||||||||
| Other real estate and repossessed assets | $ | - | $ | - | $ | - | $ | - | $ | 2,343 | $ | - | $ | 2,343 | |||||||||||||||||
| Nonperforming loans to total loans | 0.00 | % | 0.00 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.00 | % | 0.01 | % | |||||||||||||||||
| Nonperforming assets to total assets | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.08 | % | 0.00 | % | 0.08 | % | |||||||||||||||||
| Allowance for credit losses | $ | 17,442 | $ | 17,001 | $ | 17,109 | $ | 16,794 | $ | 15,285 | $ | 17,442 | $ | 15,285 | |||||||||||||||||
| Allowance for credit losses to total loans | 1.30 | % | 1.32 | % | 1.35 | % | 1.38 | % | 1.30 | % | 1.30 | % | 1.30 | % | |||||||||||||||||
| Allowance for credit losses to nonperforming loans | 1744200.00 | % | 1700100.00 | % | 23762.50 | % | 22392.00 | % | 19596.15 | % | 1744200.00 | % | 19596.15 | % | |||||||||||||||||
| CAPITAL | |||||||||||||||||||||||||||||||
| Average equity to average assets | 10.16 | % | 9.71 | % | 10.01 | % | 9.07 | % | 8.49 | % | 9.74 | % | 8.55 | % | |||||||||||||||||
| Common equity tier 1 to risk weighted assets (Consolidated) | 17.70 | % | 17.66 | % | 17.16 | % | 17.08 | % | 16.94 | % | 17.70 | % | 16.94 | % | |||||||||||||||||
| Tier 1 capital to average assets (Consolidated) | 11.35 | % | 10.91 | % | 11.08 | % | 10.26 | % | 9.73 | % | 11.35 | % | 9.73 | % | |||||||||||||||||
| Total capital to risk-weighted assets (Consolidated) | 18.69 | % | 18.65 | % | 18.16 | % | 18.08 | % | 17.87 | % | 18.69 | % | 17.87 | % | |||||||||||||||||
| Common equity tier 1 to risk weighted assets (Bank) | 17.18 | % | 17.14 | % | 16.66 | % | 16.58 | % | 16.44 | % | 17.18 | % | 16.44 | % | |||||||||||||||||
| Tier 1 capital to average assets (Bank) | 11.02 | % | 10.59 | % | 10.75 | % | 9.96 | % | 9.44 | % | 11.02 | % | 9.44 | % | |||||||||||||||||
| Total capital to risk-weighted assets (Bank) | 18.18 | % | 18.13 | % | 17.66 | % | 17.58 | % | 17.37 | % | 18.18 | % | 17.37 | % | |||||||||||||||||
| Common equity to assets | 10.44 | % | 9.78 | % | 10.03 | % | 9.88 | % | 8.50 | % | 10.44 | % | 8.50 | % | |||||||||||||||||
| Tangible common equity to assets | 10.44 | % | 9.78 | % | 10.03 | % | 9.88 | % | 8.50 | % | 10.44 | % | 8.50 | % | |||||||||||||||||
| END OF PERIOD BALANCES | |||||||||||||||||||||||||||||||
| Total portfolio loans | $ | 1,338,386 | $ | 1,291,290 | $ | 1,271,576 | $ | 1,220,939 | $ | 1,177,748 | $ | 1,338,386 | $ | 1,177,748 | |||||||||||||||||
| Earning assets | 2,637,111 | 2,648,445 | 2,518,396 | 2,531,184 | 2,781,515 | 2,637,111 | 2,781,515 | ||||||||||||||||||||||||
| Total assets | 2,748,699 | 2,759,710 | 2,630,254 | 2,637,153 | 2,906,919 | 2,748,699 | 2,906,919 | ||||||||||||||||||||||||
| Deposits | 2,415,730 | 2,445,586 | 2,321,545 | 2,330,895 | 2,615,142 | 2,415,730 | 2,615,142 | ||||||||||||||||||||||||
| Total shareholders' equity | 287,085 | 269,877 | 263,819 | 260,568 | 247,038 | 287,085 | 247,038 | ||||||||||||||||||||||||
| AVERAGE BALANCES | |||||||||||||||||||||||||||||||
| Federal funds sold and other short-term investments | $ | 407,278 | $ | 467,434 | $ | 360,023 | $ | 555,670 | $ | 681,489 | $ | 447,249 | $ | 862,240 | |||||||||||||||||
| Total securities | 875,067 | 879,379 | 900,724 | 898,691 | 862,613 | 888,376 | 749,787 | ||||||||||||||||||||||||
| Total portfolio loans | 1,295,545 | 1,274,344 | 1,246,217 | 1,186,684 | 1,159,449 | 1,251,061 | 1,120,453 | ||||||||||||||||||||||||
| Earning assets | 2,587,704 | 2,630,894 | 2,516,837 | 2,650,972 | 2,713,294 | 2,596,523 | 2,743,141 | ||||||||||||||||||||||||
| Total assets | 2,691,336 | 2,743,069 | 2,625,334 | 2,757,594 | 2,822,770 | 2,704,258 | 2,865,254 | ||||||||||||||||||||||||
| Non-interest bearing deposits | 648,084 | 692,436 | 674,565 | 732,434 | 847,752 | 686,664 | 884,579 | ||||||||||||||||||||||||
| Total interest bearing deposits | 1,721,910 | 1,737,579 | 1,641,857 | 1,727,883 | 1,687,693 | 1,707,374 | 1,672,417 | ||||||||||||||||||||||||
| Total deposits | 2,369,994 | 2,430,015 | 2,316,422 | 2,460,318 | 2,535,446 | 2,394,038 | 2,556,996 | ||||||||||||||||||||||||
| Borrowings | 30,000 | 30,000 | 30,000 | 30,000 | 30,000 | 30,000 | 49,622 | ||||||||||||||||||||||||
| Total shareholders' equity | 273,525 | 266,339 | 262,764 | 250,160 | 239,684 | 263,270 | 244,841 | ||||||||||||||||||||||||
FAQ
What was Macatawa Bank Corporation's net income for the full year 2023?
What was the net interest margin in the fourth quarter of 2023?
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What was Macatawa Bank Corporation's accumulated other comprehensive income (AOCI) in the fourth quarter of 2023?
What was Macatawa Bank Corporation's capital position at the end of 2023?
What was Macatawa Bank Corporation's net income for the full year 2023?
