Mackinac Financial Corporation Reports First Quarter 2016 Results
(firmenpresse) - MANISTIQUE, MI -- (Marketwired) -- 05/09/16 -- Mackinac Financial Corporation (NASDAQ: MFNC) (the "Corporation"), the bank holding company for mBank, today announced first quarter 2016 income of $1.132 million, or $.18 per share, compared to net income of $1.371 million, or $.22 per share, for the first quarter of 2015. The 2015 first quarter income was positively impacted by a one-time $.283 million credit mark accretion under GAAP from the acquired loan portfolio from Peninsula Bank (Pen). 2015 income adjusted for this item was $1.088 million, or $.17 per share. Total assets of the Corporation at March 31, 2016 totaled $732.932 million compared to $728.844 million at March 31, 2015.
Shareholders'' equity at March 31, 2016 totaled $77.395 million, compared to $75.038 million on March 31, 2015. The tangible book value per share equated to $11.64 on March 31, 2016 compared to $11.20 per share a year ago. Weighted average shares outstanding totaled 6,214,083 shares in the 2016 first quarter compared to 6,256,475 for the same period in 2015.
mBank, the Corporation''s primary asset, recorded net income of $1.486 million in the first quarter of 2016, compared to $1.627 million for the first quarter of 2015. 2015 income less the $.283 million one-time item was $1.344 million.
Total loan production during the first three months of 2016 was $44.9 million versus $31.5 million for the same period in 2015, an increase of $13.4 million.
Announcement of the purchase of First National Bank of Eagle River (Wisconsin) was made on January 19, 2016, and represents the company''s first expansion outside of Michigan. The transaction was closed on April 29, 2016 and is expected to add approximately $125 million in assets, $80 million in loans and $100 million in core deposits to the company.
Net interest margin has remained strong at 4.33% despite the continued low interest rate environment.
Active secondary mortgage market activity with non-interest income stemming from that business line increasing from $.167 million to $.267 million year over year.
Quarterly dividend on common stock of $.10 per share compared to $.075 per share one year ago.
Total loans at March 31, 2016 were $618.625 million, an increase of $20.894 million from March 31, 2015 balances of $597.731 million. New loan production was solid in the 2016 first quarter at $44.9 million, although some larger loan payoffs and normal loan principal amortization resulted in flat outstanding loan balances since year end. Commenting on new loan production and overall lending activities, Kelly W. George, President and CEO of mBank stated, "We are very pleased with our overall loan production for the quarter with almost $26 million in new commercial originations and over $14 million in consumer, primarily mortgage, where we have seen a nice uptick in secondary market activity. We expect that trend to continue as we move into our more seasonal lending origination months and with the addition of our new Wisconsin markets through the recent acquisition of First National Bank of Eagle River. We are very excited to enter these markets given their close business ecology with our Upper Peninsula markets and similar clients in lending types and needs. Even with the favorable production that has outpaced 2015 significantly, we have not seen the aggregate loan balances grow comparatively as we would have anticipated with this level of production. Some of this is attributable to normal amortization of the portfolio, but some is also due to the competition for good earning assets and our decision to remain steadfast on our pricing and credit structures to maintain long term balance sheet stability and allow some legacy loan relationships to exit where appropriate structures could not be attained. We continue to monitor this issue closely and do not view the issue as a trend that will continue and loan growth should increase at these production levels throughout the year."
Nonperforming loans totaled $1.717 million, .28% of total loans at March 31, 2016 compared to $11.850 million, or 1.98%, of total loans at March 31, 2015 and down from the $2.539 million from December 31, 2015. Total loan delinquencies greater than 30 days resided at a nominal .63%, or $3.818 million, at the end of the period. Mr. George, commenting on credit quality, stated, "Our credit quality risk metrics and overall loan portfolio payment performance remains strong with no significant loan issues within the portfolio. We continue to carry very low levels of ORE and what we do have is disposed of quickly to alleviate any long term carrying costs. As with the Peninsula Bank acquisition, in which our expectations have proven accurate to date, we are comfortable with our diligence on the Eagle River loan portfolio and corresponding purchase accounting marks and expect similar good results with the overall value and performance of the loans we are acquiring."
Net interest income in the first quarter of 2016 remained mostly flat at $7.288 million, or 4.33%, compared to $7.520 million, or 4.53%, in the first quarter of 2015. The 2015 net interest income and margin were positively impacted by the previously mentioned one-time accretion item from the Pen loan portfolio. Mr. George stated, "We have been successful in maintaining our strong net interest margin within this historically low interest rate cycle though the use of continued targeted funding strategies and disciplined loan pricing in efforts to mitigate longer term interest rate risk. Our balance sheet remains well positioned to take advantage of any future upward short term interest rate movements should they occur this year. We will remain committed to our core banking philosophy which emphasizes loan growth as the best asset to invest in to benefit and help grow the economic bases in our local communities, which in turn also provides the best overall returns to our shareholders."
Total deposits of $592.978 million at March 31, 2016 decreased by $4.935 million, from deposits of $597.913 million on March 31, 2015 and were down from year end deposits of $610.323 million. Mr. George, commenting on core deposits and overall liquidity needs, stated "The Corporation maintains a strong liquidity position to fund operations and loan growth. We proactively review our short and long term funding needs and review our pricing levels within the different segments of our deposit products in order to best manage our net interest margin to capture as many dollars as we can. Given the fairly flat growth pattern in our loan book near term, we have managed our deposit portfolio to maintain our margin and profitability."
Noninterest income, at $.627 million in the first quarter of 2016, increased $.003 million from the first quarter 2015 level of $.624 million. Year over year non-interest income levels remained flat even with a decrease in SBAUSDA sales which totaled $.118 million in the 2015 first quarter. Secondary market fees increased $.100 million in the first quarter of 2016 compared to first quarter of 2015. Noninterest expense, at $6.198 million in the first quarter of 2016, increased $.442 million, or 8%, from the first quarter of 2015. The increase from the first quarter of 2015 was largely attributable to strategic costs attributable to the First National Bank of Eagle River acquisition as well as customary employee compensation and retention related costs to ensure our personnel infrastructure keeps pace with our growing asset base and subsequent regulatory platform monitoring needs.
Total assets of the Corporation at March 31, 2016 were $732.932 million, up $4.088 million from the $728.844 million reported at March 31, 2015 and down $6.337 million from the $739.269 million of total assets at year-end 2015. Common shareholders'' equity at March 31, 2016 totaled $77.395 million, or $12.42 per share, compared to $75.038 million, or $11.99 per share on March 31, 2015. The Corporation and the Bank are both "well-capitalized" with Tier 1 Capital at the Corporation of 11.54% and 12.83% at the Bank.
Paul D. Tobias, Chairman and Chief Executive Officer of Mackinac concluded, "We are pleased with the fairly priced acquisition opportunities that we are seeing and very satisfied with the execution of each of the Peninsula Bank and First National Bank of Eagle River mergers. Our strategy of complimentary organic and acquired growth allows us to maintain discipline in the pricing and credit risk profile of our loans in these competitive times while still increasing our asset base to help spread our costs. This allows us to improve both short term earnings growth and long term stability and shareholder value."
Mackinac Financial Corporation is a registered bank holding company formed under the Bank Holding Company Act of 1956 with assets in excess of $730 million and whose common stock is traded on the NASDAQ stock market as "MFNC." The principal subsidiary of the Corporation is mBank. Headquartered in Manistique, Michigan, mBank has 20 branch locations; thirteen in the Upper Peninsula, three in the Northern Lower Peninsula, one in Oakland County, Michigan, and three in Northern Wisconsin. The Company''s banking services include commercial lending and treasury management products and services geared toward small to mid-sized businesses, as well as a full array of personal and business deposit products and consumer loans.
Contact:
Ernie R. Krueger
(906)341-7158
Website:
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Datum: 09.05.2016 - 08:59 Uhr
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