Mackinac Financial Corporation (MFNC) has reported a 19.89 percent fall in profit for the year ended Dec. 31, 2016. The company has earned $4.48 million, or $0.71 a share in the year, compared with $5.60 million, or $0.89 a share for the last year.
Revenue during the year grew 15.24 percent to $36.65 million from $31.80 million in the previous year. Net interest income for the quarter rose 13.66 percent over the prior year period to $33.10 million. Non-interest income for the year rose 6.79 percent over the last year to $4.15 million.
Mackinac Financial Corporation has made provision of $0.60 million for loan losses during the year, down 50.17 percent from $1.20 million in the same period last year.
Net interest margin contracted 11 basis points to 4.19 percent in the year from 4.30 percent in the last year.
Paul D. Tobias, chairman and chief executive officer of the Corporation commented, "Mackinac remains focused on expanding our community oriented and client focused bank through both organic growth and through targeted accretive acquisition opportunities. Our two 2016 transactions in Niagara and Eagle River complemented our legacy markets very well, providing more operating leverage and scale to drive higher monthly core earnings and increased market deposits and loans for a better mix of both. Our experienced management team and culture will remain focused on developing shareholder value through sound decision making and execution."
Liabilities outpace assets growth
Total assets stood at $983.52 million as on Dec. 31, 2016, up 33.04 percent compared with $739.27 million on Dec. 31, 2015. On the other hand, total liabilities stood at $904.91 million as on Dec. 31, 2016, up 36.56 percent from $662.67 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $776.84 million as on Dec. 31, 2016, up 26.65 percent compared with $613.39 million on Dec. 31, 2015. Deposits stood at $823.51 million as on Dec. 31, 2016, up 34.93 percent compared with $610.32 million on Dec. 31, 2015. Loans to deposits ratio was 98.14 percent for the year, down from 100.52 percent for the previous year.
Noninterest-bearing deposit liabilities were $164.18 million or 19.94 percent of total deposits on Dec. 31, 2016, compared with $122.78 million or 20.12 percent of total deposits on Dec. 31, 2015.
Investments stood at $86.27 million as on Dec. 31, 2016, up 60.57 percent or $32.54 million from year-ago. Shareholders equity stood at $78.61 million as on Dec. 31, 2016, up 2.62 percent or $2.01 million from year-ago.
Return on average assets moved down 24 basis points to 0.52 percent in the year from 0.76 percent in the last year. At the same time, return on average equity decreased 168 basis points to 5.73 percent in the year from 7.41 percent in the last year.
Nonperforming assets moved up 83.14 percent or $4.04 million to $8.91 million on Dec. 31, 2016 from $4.86 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 0.91 percent in the year, up from 0.66 percent in the last year.
Tier-1 leverage ratio stood at 7.18 percent for the year, down from 9.81 percent for the previous year. Average equity to average assets ratio was 8.18 percent for the year, down from 11.19 percent for the previous year. Book value per share was $12.55 for the year, up 1.87 percent or $0.23 compared to $12.32 for the same period last year.
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