Macatawa Bank Corporation (MCBC) has reported a 16.11 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $4.11 million, or $0.12 a share in the quarter, compared with $3.54 million, or $0.10 a share for the same period last year.
Revenue during the quarter went down marginally by 1.78 percent to $17.40 million from $17.71 million in the previous year period. Net interest income for the quarter rose 7.25 percent over the prior year period to $12.29 million. Non-interest income for the quarter rose 7.84 percent over the last year period to $4.86 million.
Macatawa Bank Corporation has made negative provision of $0.25 million for loan losses during the quarter, compared with a negative provision of $1.75 million in the same period last year.
Net interest margin improved 14 basis points to 3.17 percent in the quarter from 3.03 percent in the last year period. Efficiency ratio for the quarter improved to 66.99 percent from 79.02 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"Operating performance continued to improve in both the fourth quarter and the full year of 2016," said Ronald L. Haan, President and CEO of the Company. "Strong revenue growth and lower operating expenses resulted in a 25% increase in full year net income compared to 2015. Revenue, including net interest income and other noninterest sources, increased by $4.7 million over the prior year while noninterest expenses declined by $1.2 million. Full year loan growth of $82.9 million, or 7%, was consistent with the loan growth we have experienced in each of the last three years and continued to be the primary driver of revenue growth. Asset quality remained excellent, and our loan collection efforts remained strong with eight consecutive quarters of net recoveries. We have honored our commitment to drive profitable growth with solid increases in quality loans, while maintaining a disciplined approach to managing expenses."
Assets, liabilities remain almost stable
Total assets stood at $1,741.01 million as on Dec. 31, 2016, up 0.66 percent compared with $1,729.64 million on Dec. 31, 2015. On the other hand, total liabilities were almost flat at $1,578.77 million as on Dec. 31, 2016, when compared with the last year period.
Loans outpace deposit growth
Net loans stood at $1,263.85 million as on Dec. 31, 2016, up 7.03 percent compared with $1,180.85 million on Dec. 31, 2015. Deposits stood at $1,448.72 million as on Dec. 31, 2016, up 0.92 percent compared with $1,435.51 million on Dec. 31, 2015.
Noninterest-bearing deposit liabilities were $501.48 million or 34.62 percent of total deposits on Dec. 31, 2016, compared with $477.03 million or 33.23 percent of total deposits on Dec. 31, 2015.
Investments stood at $253.81 million as on Dec. 31, 2016, up 16.07 percent or $35.14 million from year-ago. Shareholders equity stood at $162.24 million as on Dec. 31, 2016, up 6.75 percent or $10.26 million from year-ago.
Return on average assets moved up 12 basis points to 0.97 percent in the quarter from 0.85 percent in the last year period. At the same time, return on average equity increased 68 basis points to 10.08 percent in the quarter from 9.40 percent in the last year period.
Meanwhile, nonperforming assets to total assets was 0.72 percent in the quarter, down from 1.06 percent in the last year period.
Book value per share was $4.78 for the quarter, up 6.70 percent or $0.30 compared to $4.48 for the same period last year.
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