MutualFirst Announces Increased Earnings in the Third Quarter of 2016

Deposits increased by $34.4 million in the first nine months of 2016.  The increase in deposits was a result of an increase in core deposits of $26.4 million and an increase of $8.0 million in certificates of deposit.

Allowance for loan losses was constant at $12.6 million as of September 30, 2016 compared to December 31, 2015.  Net charge-offs in the first nine months of 2016 were $654,000, or 0.08% of total loans on an annualized basis, compared to $411,000, or 0.05% of total loans on an annualized basis in the first nine months of 2015.  The allowance for loan losses to non-performing loans as of September 30, 2016 was 215.8% compared to 176.3% as of December 31, 2015.  The allowance for loan losses to total loans as of September 30, 2016 was 1.11% compared to 1.17% as of December 31, 2015.  Non-performing loans to total loans at September 30, 2016 were 0.51% compared to 0.66% at December 31, 2015.  Non-performing assets to total assets were 0.44% at September 30, 2016 compared to 0.65% at December 31, 2015.

Stockholders' equity was $143.2 million at September 30, 2016, an increase of $6.2 million from December 31, 2015. The increase was primarily due to net income available to common shareholders of $10.0 million, an increase in accumulated other comprehensive income of $2.5 million and an increase of $976,000 due to exercises of stock options.  These increases were partially offset by stock repurchases of $4.4 million, or 175,428 shares repurchased, and common stock dividends of $3.1 million for the first nine months of 2016.  The Company's tangible book value per common share as of September 30, 2016 increased to $19.24 compared to $18.11 as of December 31, 2015 and the tangible common equity ratio increased to 9.20% as of September 30, 2016 compared to 9.11% as of December 31, 2015.  MFSF's and the Bank's risk-based capital ratios were well in excess of "well-capitalized" levels as defined by all regulatory standards as of September 30, 2016.

Income Statement

Net interest income before the provision for loan losses increased $421,000 for the quarter ended September 30, 2016 compared to the same period in 2015.  The increase in net interest income was primarily a result of an increase of $62.8 million in average interest earning assets, due to an increase of $70.9 million in average loans.  This increase was partially offset by a 3 basis point decrease in net interest margin to 3.19%, while the tax equivalent margin decreased 2 basis points.  The decrease in the margin was the result of average interest earning assets, primarily loans, repricing downward faster than average interest bearing liabilities.  On a linked quarter basis, net interest income before the provision for loan losses increased $250,000 as net interest margin increased by 3 basis points and average interest earning assets increased by $15.6 million primarily due to increases in the average loan portfolio. 

Net interest income before the provision for loan losses increased $1.1 million for the first nine months of 2016 compared to the same period in 2015.  The increase was a result of an increase of $64.0 million in average interest earning assets due to an increase in the average loan portfolio of $67.0 million. This increase was partially offset by the net interest margin decreasing to 3.16% in the first nine months of 2016 compared to 3.20% in the first nine months of 2015, while the tax equivalent net interest margin declined to 3.25% in the first nine months of 2016 compared to 3.27% in the comparable period in 2015.  

Provision for loan losses in the third quarter of 2016 was $250,000 compared to no provision during last year's comparable period.  The increase was due to management's ongoing evaluation of the adequacy of the allowance for loan losses, which was partially attributable to an increasing loan portfolio and a low, but consistent level in net charge offs of $267,000, or 0.09% of loans on an annualized basis, in the third quarter of 2016 compared to net charge offs of $149,000, or 0.06% of loans on an annualized basis, in the third quarter of 2015.   

The provision for loan losses for the first nine months of 2016 was $600,000 compared to no provision during last year's comparable period.  The increase was primarily due to our loan portfolio that has increased $77.1 million, or 7.3% over the last year.  Net charge-offs for the first nine months of 2016 equaled $654,000, or 0.08% of loans on an annualized basis compared to $411,000, or 0.05% in the same period of 2015.

Non-interest income for the third quarter of 2016 was $5.1 million, an increase of $673,000 compared to the third quarter of 2015.  Increases in non-interest income included an increase of $310,000 on gain on sale of loans as mortgage production remained strong, an increase of $102,000 on gain on sale of repossessed property as repossessed land was sold at an amount higher than its carrying value, and an increase of $95,000 in commission income due to increases in our trust and wealth management business. On a linked quarter basis, non-interest income decreased $827,000 due to a decrease of $560,000 in security gains and a decrease of $501,000 in other income primarily due to life insurance proceeds from a death benefit in the second quarter of 2016.

Non-interest income for the first nine months of 2016 was $15.0 million, an increase of $2.2 million compared to the first nine months of 2015.  The reasons for the increase included an increase of $629,000 on gain on sale of mortgage loans due to strong mortgage production, an increase of $335,000 in commission income due to the trust and wealth management business, and an increase of $99,000 in service charges on deposit accounts.  Other increases included an increase of $439,000 on gain on sale of securities and an increase of $727,000 in other income primarily related to one-time income received in the second quarter 2016, not repeated in the third quarter.

Non-interest expense increased $709,000 when comparing the third quarter of 2016 with the same period in 2015.  The increase was primarily due to an increase of $600,000 in salaries and benefits as health insurance increased along with normal merit increases in compensation and new additions to staff as we entered into the Fort Wayne market at the end of 2015.  Other increases included an increase of $97,000 in software subscriptions and maintenance due to investments in software.  On a linked quarter basis, non-interest expense increased $123,000 partially due to an increase in salaries and benefits due to increased health insurance expenses and commission expense for mortgage originators.

Non-interest expense increased $2.0 million when comparing the first nine months of 2016 with the same period in 2015.  Salaries and employee benefits increased $1.1 million for the reasons described above, other expenses increased $386,000 due to increased charge-offs and fraud activity on debit cards and bad checks along with non-recurring expenses in the first quarter, occupancy and equipment expenses increased $245,000 due to a new office in Fort Wayne, Indiana and an update to an existing location, software subscriptions and maintenance increased $266,000 due to investments in software, and data processing expenses increased $163,000 primarily due to increased services being provided.  These increases were partially offset by a decrease of $258,000 in foreclosed real estate and repossessed assets expense.

The effective tax rate for the third quarter of 2016 was 25.8% compared to 29.2% in the same quarter of 2015.  The effective tax rate for the first nine months of 2016 was 24.9% compared to 29.2% for the same period in 2015. The reason for the decline was an increase in tax free income partially due to an increase in holdings of tax free municipal securities. 

Heeter concluded, "Overall, we are pleased with this quarter's results and believe we are making substantive progress in accomplishing the goals we set out to achieve in our strategic plan."

MutualFirst Financial, Inc. is the parent company of MutualBank, an Indiana-based financial institution since 1889. MutualBank has thirty-one full-service retail financial centers in Allen, Delaware, Elkhart, Grant, Kosciusko, Randolph, St. Joseph and Wabash Counties in Indiana. MutualBank has two offices located in Fishers and Crawfordsville, Indiana specializing in wealth management and trust services and a loan origination office in New Buffalo, Michigan. MutualBank also operates a wholly owned mortgage banking subsidiary named Summit Mortgage which operates out of Fort Wayne, Indiana. MutualBank provides a full range of financial services including commercial and business banking, personal banking, wealth management, trust services, investments and internet banking services. The Company's stock is traded on the NASDAQ National Market under the symbol "MFSF."  Additional information can be found online at www.bankwithmutual.com.

Statements contained in this release, which are not historical facts, are forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time.

MutualFirst Financial, Inc. Selected Financials
	September 30,	June 30,	December 31,	September 30,
Balance Sheet (Unaudited):	2016	2016	2015	2015
	(000)	(000)	(000)	(000)
Assets
Cash and cash equivalents	$26,123	$34,503	$20,915	$18,643
Investment securities - AFS	256,865	251,326	261,138	266,815
Loans held for sale	8,311	8,587	5,991	6,052
Loans, gross	1,134,876	1,107,368	1,080,845	1,057,735
Allowance for loan losses	(12,587)	(12,604)	(12,641)	(12,757)
Net loans	1,122,289	1,094,764	1,068,204	1,044,978
Premises and equipment, net	31,668	31,875	31,048	30,805
FHLB of Indianapolis stock	10,751	10,640	10,482	9,810
Deferred tax asset, net	10,723	10,196	12,084	11,566
Cash value of life insurance	51,309	51,024	51,209	51,895
Other real estate owned and repossessed assets	876	1,734	2,456	2,418
Goodwill	1,800	1,800 Werbung Mehr Nachrichten zur Mutualfirst Financial 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 24.04.24 - PR Newswire Fidelity Special Values Plc - Monthly Factsheet 24.04.24 - PR Newswire Fidelity Emerging Markets Ltd - Monthly Factsheet 24.04.24 - PR Newswire Fidelity Asian Values Plc - Monthly Factsheet Solarboom 2024:    5 Gründe die für diese Aktie sprechen… weiterlesen» Anzeige wo-site-teaser-box-16746_site-teaser-box_2024-04-24_08%253A00%253A00_2024-04-25_09%253A00%253A59