MainSource Financial Group - NASDAQ, MSFG - Announces Second Quarter 2016 Financial Results

NON-INTEREST INCOME

The Company's non-interest income (excluding investment securities gains) was $13.6 million for the second quarter of 2016 compared to $12.8 million for the same period in 2015.  An increase in interchange income of $577 thousand and "other" income of $397 thousand (primarily commercial swap fees) was partially offset by a decrease of $279 thousand in service charges on deposit accounts.  Interchange income increased year over year as the Company converted its debit cards from Visa to MasterCard, which has resulted in a higher interchange rate.

NON-INTEREST EXPENSE

The Company's non-interest expense was $34.1 million for the second quarter of 2016 compared to $25.7 million for the same period in 2015.  Excluding the $6.4 million charge related to the acquisition of Cheviot, non-interest expense would have been $27.7 million.  The year over year increase in total expenses were in the employee, occupancy and equipment expense categories and were primarily related to the acquisitions of Cheviot in May 2016 and the Old National branches in the latter part of 2015.

BALANCE SHEET AND CAPITAL

Total assets were $4.0 billion at June 30, 2016, which represents a $755 million increase from a year ago.  The increase in assets was primarily related to the acquisition of Cheviot ($563 million), the acquisition of the Old National branches in the third quarter of 2015 ($97 million) and organic loan growth.  Loan balances (including loans that are classified as held for sale) grew $396 million on a linked quarter basis with $360 million coming from the Cheviot acquisition and $36 million of organic growth.  The Company's regulatory capital ratios remain strong and as of June 30, 2016 were as follows: leverage ratio of 10.2%, tier one capital to risk-weighted assets of 13.5%, common equity tier one capital ratio of 12.0%, and total capital to risk-weighted assets of 14.3%.  In addition, as of June 30, 2016, the Company's tangible common equity ratio was 8.9%.

ASSET QUALITY

Non-performing assets (NPA's) were $23.0 million as of June 30, 2016, an increase of $6.7 million on a linked-quarter basis.  The increase in NPA's from March 31, 2016 was primarily related to the acquisition of Cheviot which added $4.1 million of non-accrual loans and $1.7 million of other real estate owned.  NPA's represented 0.58% of total assets as of June 30, 2016 compared to 0.48% as of March 31, 2016 and 0.68% as of June 30, 2015.  The Company realized net recoveries of $184 thousand for the second quarter of 2016 and the Company recorded $205 thousand of loan loss provision expense for the second quarter of 2016.  This level of provision expense resulted from the organic loan growth realized during the period.  The Company's allowance for loan losses as a percent of total outstanding loans was 0.84% as of June 30, 2016 compared to 0.97% as of March 31, 2016 and 1.12% as of June 30, 2015.  The decrease in this metric was primarily driven by the increase in acquired loans that were marked to fair value at the acquisition date and not included in the loan loss reserve analysis.

USE OF NON-GAAP FINANCIAL MEASURES

This press release includes financial measures prepared other than in accordance with generally accepted accounting principles in the United States ("GAAP"). Specifically, we have included non-GAAP financial measures of the Company's net income excluding the impact of the Company's acquisition of Cheviot Financial Corp. and non-interest income/expense excluding the impact of certain gains on the sale of investment securities and FHLB prepayment penalty.  These non-GAAP financial measures should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.  We believe this information is helpful in understanding the Company's results of operations separate and apart from items that may, or could, have a disproportionate positive or negative impact in any given period, such as purchase accounting impacts, one-time costs of acquisitions or other non-core items.  A reconciliation of the non-GAAP measures to the most comparable GAAP equivalent is included in the text or in the attached financial tables where the non-GAAP measure is presented.

Forward-Looking Statements

Except for historical information contained herein, the discussion in this press release includes certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are covered by the safe harbor provisions of such sections.  These statements are based upon management expectations, goals and projections, which are subject to numerous assumptions, risks and uncertainties (many of which are beyond management's control). Factors which could cause future results to differ materially from these expectations include, but are not limited to, the following: general economic conditions; legislative and regulatory initiatives; monetary and fiscal policies of the federal government; deposit flows; the costs of funds; general market rates of interest; interest rates on competing investments; demand for loan products; demand for financial services; changes in accounting policies or guidelines; changes in the quality or composition of the Company's loan and investment portfolios; the Company's ability to integrate acquisitions; and other factors, including various "risk factors" as set forth in our most recent Annual Report on Form 10-K and in other reports we file from time to time with the Securities and Exchange Commission.  These reports are available publicly on the SEC website, www.sec.gov, and on the Company's website, www.mainsourcefinancial.com.

MAINSOURCE FINANCIAL GROUP (unaudited) (Dollars in thousands except per share data)
		Three months ended June 30						Six months ended June 30
		2016			2015			2016			2015
Income Statement Summary
Interest Income		$	30,870		$	27,293		$	59,616		$	54,560
Interest Expense		2,672			1,949			5,046			4,162
Net Interest Income		28,198			25,344			54,570			50,398
Provision for Loan Losses		205			—			705			—
Noninterest Income:
Trust and investment product fees		1,253			1,254			2,463			2,460
Mortgage banking		2,743			2,609			4,533			4,464
Service charges on deposit accounts		5,219			5,498			9,901			10,119
Securities gains		104			63			121			315
Interchange income		2,805			2,228			5,440			4,189
Other		1,614			1,217			2,869			2,713
Total Noninterest Income		13,738			12,869			25,327			24,260
Noninterest Expense:
Employee		15,884			14,534			30,744			28,511 Werbung Mehr Nachrichten zur Mainsource Financial Group Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 08:56 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Gresham Technologies Plc 08:53 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Shanta Gold Ltd 08:52 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Network International Holdings Plc SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59