Macatawa Bank Corporation (MCBC) has reported 43.83 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $4.60 million, or $0.14 a share in the quarter, compared with $3.20 million, or $0.09 a share for the same period last year.
Revenue during the quarter grew 8.65 percent to $17.23 million from $15.86 million in the previous year period. Net interest income for the quarter rose 7.02 percent over the prior year period to $11.90 million. Non-interest income for the quarter rose 13.18 percent over the last year period to $5.08 million.
Macatawa Bank Corporation has made negative provision of $0.25 million for loan losses during the quarter, compared with a negative provision of $0.25 million in the same period last year.
Net interest margin improved 16 basis points to 3.08 percent in the quarter from 2.92 percent in the last year period. Efficiency ratio for the quarter improved to 66.40 percent from 72.12 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"We continued to improve our financial performance in the third quarter showing 44% growth in earnings over the third quarter of last year," said Ronald L. Haan, president and chief executive officer of the Company. “Our earnings improvement was due primarily to increased net interest income and gains on sales of mortgage loans, while holding level our noninterest expenses. Our increase in net interest income was fueled by growth in portfolio loans. Consistent with our objectives, we have achieved this loan growth while also maintaining the quality of our loan portfolio. Quarter end delinquencies were negligible, and we experienced net loan recoveries again this quarter and have for the past seven quarters. As a result, we again had a modest negative provision for loan losses. Gains on sales of mortgage loans in the third quarter of 2016 doubled from the second quarter and were 67 percent higher than in the third quarter of 2015. The level of total noninterest expense in the third quarter of 2016 was the same as it was in the third quarter of last year, reflecting our efforts to control expenses."
Assets, liabilities remain almost stableTotal assets stood at $1,653.69 million as on Sep. 30, 2016, down 0.34 percent compared with $1,659.34 million on Sep. 30, 2015. On the other hand, total liabilities stood at $1,491.44 million as on Sep. 30, 2016, down 1.20 percent from $1,509.61 million on Sep. 30, 2015.
Loans outpace deposit growthNet loans stood at $1,219.55 million as on Sep. 30, 2016, up 3.82 percent compared with $1,174.66 million on Sep. 30, 2015. Deposits stood at $1,358.63 million as on Sep. 30, 2016, down 0.60 percent compared with $1,366.85 million on Sep. 30, 2015. Noninterest-bearing deposit liabilities were $455.16 million or 33.50 percent of total deposits on Sep. 30, 2016, compared with $442.32 million or 32.36 percent of total deposits on Sep. 30, 2015.
Investments stood at $243.30 million as on Sep. 30, 2016, up 20.47 percent or $41.35 million from year-ago. Shareholders equity stood at $162.24 million as on Sep. 30, 2016, up 8.36 percent or $12.51 million from year-ago.
Return on average assets moved up 33 basis points to 1.10 percent in the quarter from 0.77 percent in the last year period. At the same time, return on average equity increased 286 basis points to 11.50 percent in the quarter from 8.64 percent in the last year period.
Meanwhile, nonperforming assets to total assets was 0.81 percent in the quarter, down from 1.80 percent in the last year period.
Book value per share was $4.78 for the quarter, up 8.14 percent or $0.36 compared to $4.42 for the same period last year.
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