Company Announcements

MutualFirst Announces Record Earnings for the Third Quarter of 2019

MUNCIE, Ind., Oct. 21, 2019 /PRNewswire/ -- MutualFirst Financial, Inc. (NASDAQ: MFSF), the holding company of MutualBank (the "Bank"), announced today record quarterly net income available to common shareholders for the third quarter ended September 30, 2019 was $6.1 million, or $0.71 diluted earnings per common share.  This compared to net income available to common shareholders for the same period in 2018 of $5.4 million, or $0.62 diluted earnings per common share. Net income for the third quarter ended September 30, 2019 represents an annualized return on average assets of 1.18% and return on average tangible common equity of 12.65% compared to 1.07% and 12.92%, respectively, for the same period of last year. 

Net income available to common shareholders for the nine months ended September 30, 2019 was $17.1 million, or $1.97 diluted earnings per common share, compared to net income available to common shareholders of $13.6 million, or $1.60 diluted earnings per common share for the nine months ended September 30, 2018.  Net income for the nine months ended September 30, 2019 represents an annualized return on average assets of 1.10% and return on average tangible common equity of 12.22% compared to 0.95% and 11.34%, respectively, for the same period of last year.

Other financial highlights for the third quarter and first nine months of 2019 include:

  • Mortgage production for the third quarter of 2019 increased $31.8 million, or 61% over the third quarter of 2018.  Year to date mortgage production increased $51.9 million, or 40% over the same period in 2018.
  • For the first nine months of 2019, commercial loans increased $28.5 million, or 5.5% on an annualized basis, and non-residential consumer loans increased $15.2 million, or 7.6% on an annualized basis.
  • Non-performing assets to total assets ratio was 0.38% and non-performing loans to total loans ratio was 0.39% as of September 30, 2019 compared to 0.54% and 0.61%, respectively, as of December 31, 2018.
  • Tangible common equity to tangible assets ratio was 9.60% and tangible book value per common share was $23.15 as of September 30, 2019 compared to 8.72% and $20.51, respectively, as of December 31, 2018.
  • Stock repurchases of 59,742 shares occurred in the third quarter of 2019 and stock repurchases of 136,471 shares occurred in the first nine months of 2019. 

"We are pleased with our record earnings and earnings momentum," said David W. Heeter, President and CEO.

Balance Sheet

Assets increased $24.2 million as of September 30, 2019 compared to December 31, 2018 primarily due to increases in mortgage loans held for sale and investment securities.  Mortgage loans held for sale increased $15.7 million compared to December 31, 2018 due to strong mortgage production as originations have increased in 2019 compared to the same period in 2018.   Investment securities increased $12.1 million from December 31, 2018 to September 30, 2019 primarily due to a decline in market interest rates, which increases the market value of the securities.  The gross loan portfolio increased by $1.1 million from December 31, 2018 to September 30, 2019 primarily due to increases in commercial loans by $28.5 million, or 5.5% annualized, and non-residential consumer loans by $15.2 million, or 7.6% annualized. These increases were partially offset by a decline from December 31, 2018 to September 30, 2019 in residential mortgage loans of $42.7 million primarily as a result of a sale of $27 million of mortgages in the third quarter of 2019.  The loan mix is 48.1% commercial loans, 33.0% residential loans and 18.9% non-residential consumer loans as of September 30, 2018 compared to 46.0%, 36.2% and 17.8%, respectively, as of December 31, 2018.

Deposits increased by $53.9 million in the first nine months of 2019 due to an increase of $36.5 million in core deposits and $17.4 million in certificates of deposit.  As of September 30, 2019, core deposits totaled $1.1 billion, or 67.9% of total deposits and certificates of deposit totaled $506 million, or 32.1% of total deposits.  The percentage mix of core deposits was unchanged from December 31, 2018. 

Allowance for loan losses increased to $13.4 million as of September 30, 2019 compared to $13.3 million as of December 31, 2018.  The allowance for loan losses to non-performing loans as of September 30, 2019 was 230% compared to 146% as of December 31, 2018.  The allowance for loan losses to total loans as of September 30, 2019 was 0.90% compared to 0.89% as of December 31, 2018.  Non-performing loans to total loans at September 30, 2019 were 0.39% compared to 0.61% at December 31, 2018.  Non-performing assets to total assets were 0.38% at September 30, 2019 compared to 0.54% at December 31, 2018.

Stockholders' equity was $222.0 million at September 30, 2019, an increase of $19.6 million from December 31, 2018. The increase was primarily due to net income available to common shareholders of $17.1 million during the nine months ended September 30, 2019 and an increase in accumulated other comprehensive income of $11.6 million.  These increases were partially offset by common stock dividends of $5.1 million and stock repurchases of 136,471 shares at a cost of $4.3 million for the first nine months of 2019.  The Company's tangible book value per common share as of September 30, 2019 was $23.15 compared to $20.51 as of December 31, 2018 and the tangible common equity ratio increased to 9.60% as of September 30, 2019 compared to 8.72% as of December 31, 2018.  MFSF's and the Bank's risk-based capital ratios remained in excess of "well-capitalized" levels as defined by all regulatory standards as of September 30, 2019.

Income Statement

Net interest income before the provision for loan losses decreased $172,000 for the quarter ended September 30, 2019 compared to the same period in 2018.  The decrease in net interest income was primarily a result of a decrease of twelve basis points in net interest margin from 3.50% in the third quarter of 2018 compared to 3.38% in the third quarter of 2019.  Net interest margin decreased primarily due to an increase in the cost of interest-bearing liabilities of twenty-three basis points compared to an increase in yield on interest-earning assets of five basis points. This decrease was partially offset by an increase of $45.1 million in average interest-earning assets, due primarily to organic loan growth.  Net interest margin was also aided in the quarter by approximately six basis points of purchase accounting adjustments in both the third quarter of 2019 and 2018.   On a linked quarter basis, net interest income increased by $201,000 primarily due to an increase in net interest margin of five basis points.

Net interest income before the provision for loan losses increased $1.7 million for the nine months ended September 30, 2019 compared to the same period in 2018.  The increase in net interest income was primarily due to an increase of $133 million in average interest-earning assets. This increase was partially offset by a decrease of twelve basis points in net interest margin from 3.47% for the first nine months of 2018 compared to 3.35% in the same period of 2019.  Net interest margin decreased primarily due to an increase in the cost of interest-bearing liabilities of thirty-two basis points compared to an increase in yield on interest-earning assets of thirteen basis points.  Net interest margin was aided by purchase accounting adjustments of eight basis points for the nine months ended 2018 compared to five basis points for the same period in 2019.

Provision for loan losses in the third quarter of 2019 was $425,000 compared to $570,000 during last year's comparable period.  The decrease was due to management's ongoing evaluation of the adequacy of the allowance for loan losses.  Net charge-offs in the third quarter of 2019 were $449,000, or 0.12% of average total loans on an annualized basis, compared to $290,000, or 0.08% of average total loans on an annualized basis in the third quarter of 2018.   On a linked quarter basis, provision for loan losses decreased $50,000.

The provision for loan losses for the first nine months of 2019 was $1.4 million compared to $1.5 million during last year's comparable period.  Net charge-offs for the first nine months of 2019 equaled $1.2 million, or 0.11% of loans on an annualized basis, compared to $898,000, or 0.09% in the same period of 2018.

Non-interest income for the third quarter of 2019 was $5.8 million, an increase of $810,000 compared to the third quarter of 2018.  This increase was primarily a result of an increase of $926,000 in gain on sale of mortgage loans due to a $26.4 million, or 75.8% increase in sold mortgage loans in the third quarter of 2019 compared to the same period in 2018. This increase was partially offset by a decrease of $297,000 in net gain on sale of investments.  On a linked quarter basis, non-interest income increased $145,000 primarily due to an increase of $438,000 in net gain on sale of loans partially offset by a decline of $313,000 in net gain on sale of investments.

Non-interest income for the first nine months of 2019 was $16.6 million, an increase of $2.4 million compared to the first nine months of 2018.  An increase of $1.9 million in gain on sale of mortgage loans, an increase of $382,000 in service fee income, and an increase of $310,000 in gain on sale of securities were partially offset by a decrease of $162,000 in other income primarily due to a death benefit received in the first nine months of 2018 not repeated in the first nine months of 2019.

Non-interest expense decreased $91,000 when comparing the third quarter of 2019 with the same period in 2018.  Non-interest expense declined partially due to $238,000 of merger-related expenses in the third quarter of 2018 not repeated in the same period of 2019, a reduction of $212,000 in FDIC insurance premiums due to Small Bank Assessment Credits received as a result of the FDIC's Reserve Ratio exceeding 1.38% and a decline of $129,000 in core deposit intangible amortization.  These decreases were primarily offset by an increase of $674,000 in salaries and benefits due to increased commission expense for mortgage originators and health insurance expenses.  On a linked-quarter basis, non-interest expense decreased $161,000 due to a decrease in FDIC insurance premiums of $212,000 and various other declines, partially offset by an increase of $285,000 in salaries and benefits as described above.     

Non-interest expense decreased $29,000 when comparing the first nine months of 2019 with the same period in 2018.  Non-interest expense was impacted by general expense increases due to timing of the Universal Bancorp acquisition in 2018 primarily offset by one-time acquisition-related expenses of $2.2 million in the first nine months of 2018 with no similar activity in the same period of 2019. 

The effective tax rate for the third quarter of 2019 was 14.6% compared to 14.4% in the same quarter of 2018. The effective tax rate for the first nine months of 2019 was 14.0% compared to 13.3% for the same period in 2018. The primary reason for the increase is due to greater taxable income as a percentage of total income.

Mr. Heeter concluded, "This quarter continued an improvement in earnings with increased non-interest income and controlled non-interest expense.  We believe our earnings momentum can continue as we strive to efficiently drive shareholder value."

MutualFirst Financial, Inc. is the parent company of MutualBank, an Indiana-based financial institution since 1889. MutualBank has thirty-nine full-service retail financial centers throughout 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 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

















(Audited)





September 30,

June 30,

December 31,

September 30,



Balance Sheet (Unaudited):

2019

2019

2018

2018




(000)

(000)

(000)

(000)



Assets







Cash and cash equivalents

$            31,315

$         32,944

$        33,414

$        31,872



Interest-bearing time deposits

4,023

4,277

4,239

4,236



Investment securities - AFS

382,976

375,948

370,875

360,747



Loans held for sale

19,643

38,744

3,987

7,434



Loans, gross

1,497,022

1,499,138

1,495,943

1,474,383



Allowance for loan losses

(13,411)

(13,435)

(13,281)

(13,009)



Net loans

1,483,611

1,485,703

1,482,662

1,461,374



Premises and equipment, net

24,518

24,969

25,641

25,628



FHLB of Indianapolis stock

13,115

13,115

13,034

12,820



Deferred tax asset, net

3,344

4,142

7,744

12,151



Cash value of life insurance

61,099

60,787

60,160

59,845



Other real estate owned and repossessed assets

1,952

2,259

2,013

1,530



Goodwill

22,310

22,310

22,310

22,479



Core deposit and other intangibles

2,969

3,156

3,569

3,818



Other assets

22,675

22,565

19,665

17,237



Total assets

$       2,073,550

$     2,090,919

$    2,049,313

$    2,021,171










Liabilities and Stockholders' Equity







Deposits

$       1,573,088

$     1,576,013

$    1,519,225

$    1,531,198



FHLB advances

239,661

260,615

292,497

261,150



Other borrowings

17,653

17,732

17,988

17,963



Other liabilities

21,170

19,701

17,240

17,150



Stockholders' equity

221,978

216,858

202,363

193,710



Total liabilities and stockholders' equity

$       2,073,550

$     2,090,919

$    2,049,313

$    2,021,171

























Three Months

Three Months

Three Months


Nine Months

Nine Months


Ended

Ended

Ended


Ended

Ended


September 30,

June 30,

September 30,


September 30,

September 30,

Income Statement (Unaudited):

2019

2019

2018


2019

2018


(000)

(000)

(000)


(000)

(000)








Total interest and dividend income

$            21,617

$         21,518

$        20,836


$         64,437

$        58,204

Total interest expense

5,372

5,474

4,419


16,106

11,595








   Net interest income

16,245

16,044

16,417


48,331

46,609

Provision for loan losses

425

475

570


1,375

1,520

Net interest income after provision 







  for loan losses

15,820

15,569

15,847


46,956

45,089








  Non-interest income







Service fee income

2,081

2,041

2,024


5,930

5,547

Net realized gain on sales of AFS securities

109

422

406


975

666

Commissions

1,147

1,282

1,121


3,625

3,751

Net gain on sale of loans

1,778

1,341

853


4,149

2,224

Net servicing fees

158

139

129


446

433

Increase in cash value of life insurance

312

325

313


939

924

Net gain (loss) on sale of other real estate and repossessed assets

28

(29)

23


(30)

(34)

Other income

236

183

170


604

766

Total non-interest income

5,849

5,704

5,039


16,638

14,277








  Non-interest expense







Salaries and employee benefits

8,826

8,541

8,152


25,927

24,069

Net occupancy expenses

1,005

996

1,087


3,045

2,979

Equipment expenses

574

584

635


1,805

1,889

Data processing fees

680

639

669


1,970

1,938

Advertising and promotion

296

345

416


970

1,275

ATM and debit card expense

590

598

664


1,750

1,708

Deposit insurance

(3)

209

209


413

691

Professional fees

484

472

460


1,364

1,714

Software subscriptions and maintenance

723

816

702


2,308

1,987

Other real estate and repossessed assets

47

70

51


170

140

Core deposit intangible amortization

187

200

316


601

854

Other expenses

1,074

1,174

1,213


3,363

4,470

Total non-interest expense

14,483

14,644

14,574


43,686

43,714








Income before income taxes

7,186

6,629

6,312


19,908

15,652

Income tax provision

1,052

878

910


2,785

2,079

Net income available to common shareholders

$              6,134

$           5,751

$          5,402


$         17,123

$        13,573








Pre-tax pre-provision earnings (1)

$              7,611

$           7,104

$          6,882


$         21,283

$        17,172








Average Balances,  Net Interest Income, Yield Earned and Rates Paid









Three



Three




months ended



months ended




9/30/2019



9/30/2018



Average

Interest

Average

Average

Interest

Average


Outstanding

Earned/

Yield/

Outstanding

Earned/

Yield/


Balance

Paid

Rate

Balance

Paid

Rate


(000)

(000)

(annualized)

(000)

(000)

(annualized)

Interest-earning Assets:







 Interest -bearing deposits

$            24,247

$               79

1.30%

$        21,654

$               58

1.07%

 Mortgage-backed securities:







Available-for-sale

213,006

1,336

2.51

210,518

1,433

2.72

 Investment securities:







Available-for-sale

156,313

1,268

3.24

158,671

1,299

3.27

 Loans receivable

1,517,257

18,754

4.94

1,475,178

17,902

4.85

Stock in FHLB of Indianapolis

13,115

180

5.49

12,820

144

4.49

Total interest-earning assets (2)

1,923,938

21,617

4.49

1,878,841

20,836

4.44

Non-interest earning assets, net of allowance 







  for loan losses and unrealized gain/loss

154,170



134,096



     Total assets

$       2,078,108



$    2,012,937

















Interest-Bearing Liabilities:







 Demand and NOW accounts

$          404,589

785

0.78

$      402,393

664

0.66

 Savings deposits

181,116

5

0.01

186,659

5

0.01

 Money market accounts

205,301

525

1.02

190,851

253

0.53

 Certificate accounts

508,095

2,645

2.08

471,061

1,970

1.67

 Total deposits

1,299,101

3,960

1.22

1,250,964

2,892

0.92

 Borrowings

249,262

1,412

2.27

270,940

1,527

2.25

  Total interest-bearing liabilities

1,548,363

5,372

1.39

1,521,904

4,419

1.16

Non-interest bearing deposit accounts

288,961



279,574



Other liabilities

21,484



17,788



  Total liabilities

1,858,808



1,819,266



Stockholders' equity

219,300



193,671



    Total liabilities and stockholders' equity

$       2,078,108



$    2,012,937










Net interest earning assets

$          375,575



$      356,937










Net interest income


$         16,245



$         16,417









Net interest rate spread (4)



3.11%



3.27%








Net yield on average interest-earning assets (4)



3.38%



3.50%








Net yield on average interest-earning assets, tax equivalent (3)(4)



3.45%



3.57%








Average interest-earning assets to







  average interest-bearing liabilities



124.26%



123.45%

















Nine



Nine




months ended



months ended




9/30/2019



9/30/2019



Average

Interest

Average

Average

Interest

Average


Outstanding

Earned/

Yield/

Outstanding

Earned/

Yield/


Balance

Paid

Rate

Balance

Paid

Rate


(000)

(000)

(annualized)

(000)

(000)

(annualized)

Interest-earning Assets:







 Interest -bearing deposits

$            24,072

$              235

1.30%

$        22,991

$              188

1.09%

 Mortgage-backed securities:







Available-for-sale

218,065

4,370

2.67

199,540

4,002

2.67

 Investment securities:







Available-for-sale

152,715

3,730

3.26

147,801

3,589

3.24

 Loans receivable

1,513,717

55,566

4.89

1,406,011

49,965

4.74

Stock in FHLB of Indianapolis

13,106

536

5.45

12,468

460

4.92

Total interest-earning assets (2)

1,921,675

64,437

4.47

1,788,811

58,204

4.34

Non-interest earning assets, net of allowance 







  for loan losses and unrealized gain/loss

147,403



126,199



     Total assets

$       2,069,078



$    1,915,010

















Interest-Bearing Liabilities:







 Demand and NOW accounts

$          403,891

2,451

0.81

$      383,120

1,683

0.59

 Savings deposits

184,223

14

0.01

178,605

15

0.01

 Money market accounts

192,169

1,267

0.88

193,928

724

0.50

 Certificate accounts

510,169

7,702

2.01

444,413

5,116

1.53

 Total deposits

1,290,452

11,434

1.18

1,200,066

7,538

0.84

 Borrowings

267,971

4,672

2.32

254,317

4,057

2.13

  Total interest-bearing liabilities

1,558,423

16,106

1.38

1,454,383

11,595

1.06

Non-interest bearing deposit accounts

277,773



262,137



Other liabilities

20,484



17,021



  Total liabilities

1,856,680



1,733,541



Stockholders' equity

212,398



181,469



    Total liabilities and stockholders' equity

$       2,069,078



$    1,915,010










Net interest earning assets

$          363,252



$      334,428










Net interest income


$         48,331



$         46,609









Net interest rate spread (4)



3.09%



3.28%








Net yield on average interest-earning assets (4)



3.35%



3.47%








Net yield on average interest-earning assets, tax equivalent (3)(4)



3.43%



3.56%








Average interest-earning assets to







  average interest-bearing liabilities



123.31%



122.99%
















Three Months

Three Months

Three Months


Nine Months

Nine Months


Ended

Ended

Ended


Ended

Ended


September 30,

June 30,

September 30,


September 30,

September 30,

  Selected Financial Ratios and Other Financial Data (Unaudited):

2019

2019

2018


2019

2018






















Share and per share data:







 Average common shares outstanding:







   Basic

8,516,038

8,602,257

8,587,424


8,579,514

8,327,963

   Diluted

8,629,030

8,718,407

8,733,691


8,697,365

8,479,908

 Per common share:







   Basic earnings

$               0.72

$             0.67

$            0.63


$             2.00

$           1.63

   Diluted earnings 

$               0.71

$             0.66

$            0.62


$             1.97

$           1.60

   Dividends

$               0.20

$             0.20

$            0.18


$             0.60

$           0.54








Dividend payout ratio

28.17%

30.30%

29.03%


30.46%

33.75%








Performance Ratios:







   Return on average assets (ratio of net







      income to average total assets)(4)

1.18%

1.11%

1.07%


1.10%

0.95%

   Return on average tangible common equity (ratio of net 







      income to average tangible common equity)(4)

12.65%

12.24%

12.92%


12.22%

11.34%

   Interest rate spread information:







    Average during the period(4)

3.11%

3.06%

3.27%


3.09%

3.28%








    Net interest margin(4)(5)

3.38%

3.33%

3.50%


3.35%

3.47%








Efficiency Ratio

65.55%

67.33%

67.93%


67.24%

71.80%








    Ratio of average interest-earning







     assets to average interest-bearing







     liabilities

124.26%

123.20%

123.45%


123.31%

122.99%








Allowance for loan losses:







       Balance beginning of period

$            13,435

$         13,364

$        12,729


$         13,281

$        12,387

        Net charge-offs (recoveries):







Real Estate:







Commercial

56

33

0


140

53

Commercial construction and development

-

-

0


-

0

Consumer closed end first mortgage

41

31

65


111

133

Consumer open end and junior liens

-

-

16


-

36

Total real estate loans

97

64

81


251

222

Other loans:







Auto

37

40

47


166

36

Boat/RV

232

241

65


644

381

Other

74

59

72


175

160

Commercial and industrial

9

-

25


9

99

Total other

352

340

209


994

676








Net charge-offs (recoveries)

449

404

290


1,245

898

Provision for loan losses

425

475

570


1,375

1,520

Balance end of period

$            13,411

$         13,435

$        13,009


$         13,411

$        13,009








    Net loan charge-offs to average loans (4)

0.12%

0.11%

0.08%


0.11%

0.09%























September 30,

June 30,

December 31,

September 30,




2019

2019

2018

2018










Total shares outstanding

8,498,491

8,551,233

8,603,462

8,587,424



Tangible book value per common share

$              23.15

$           22.38

$          20.51

$          19.50



Tangible common equity to tangible assets

9.60%

9.27%

8.72%

8.39%










 Nonperforming assets (000's)







Non-accrual loans







Real Estate:







Commercial

$                881

$              848

$          4,782

$          1,759



Commercial construction and development

-

-

62

52



Consumer closed end first mortgage

3,574

3,984

2,777

2,503



Consumer open end and junior liens

184

170

273

205



Total real estate loans

4,639

5,002

7,894

4,519



Other loans:







Auto

185

50

88

40



Boat/RV

531

616

470

696



Other

16

27

46

48



Commercial and industrial

323

250

91

416



Total other

1,055

943

695

1,200



Total non-accrual loans

5,694

5,945

8,589

5,719



Accruing loans past due 90 days or more

148

-

517

0



Total nonperforming loans

5,842

5,945

9,106

5,719



    Real estate owned

1,283

1,731

1,223

1,195



    Other repossessed assets

669

528

790

335



 Total nonperforming assets

$              7,794

$           8,204

$        11,119

$          7,249










Performing restructured loans (6)

$              1,401

$           1,148

$          2,571

$          2,148










Asset Quality Ratios:







Non-performing assets to total assets 

0.38%

0.39%

0.54%

0.36%



Non-performing loans to total loans

0.39%

0.40%

0.61%

0.39%



Allowance for loan losses to non-performing loans

230%

226%

146%

227%



Allowance for loan losses to loans receivable

0.90%

0.90%

0.89%

0.88%










This earnings release and selected financials contain GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding MutualFirst's results of operations or financial position. This table shows non-GAAP financial measures and  the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure.









As of or for

As of or for

As of or for


As of or for

As of or for


Three Months

Three Months

Three Months


Nine Months

Nine Months


Ended

Ended

Ended


Ended

Ended


September 30,

June 30,

September 30,


September 30,

September 30,

Non-GAAP Measurements 

2019

2019

2018


2019

2018








Total stockholders' equity (GAAP)

$          221,978

$       216,858

$      193,710


$       221,978

$      193,710

Less: Intangible assets

25,279

25,466

26,297


25,279

26,297

Tangible common equity (non-GAAP)

$          196,699

$       191,392

$      167,413


$       196,699

$      167,413








Total assets (GAAP)

$       2,073,550

$     2,090,919

$    2,021,171


$     2,073,550

$   2,021,171

Less: Intangible assets

25,279

25,466

26,297


25,279

26,297

Tangible assets (non-GAAP)

$       2,048,271

$     2,065,453

$    1,994,874


$     2,048,271

$   1,994,874








Tangible common equity to tangible assets (non-GAAP)

9.60%

9.27%

8.39%


9.60%

8.39%








Book value per common share (GAAP)

$              26.12

$           25.36

$          22.56


$           26.12

$          22.56

Less: Effect of intangible assets

2.97

2.98

3.06


2.97

3.06

Tangible book value per common share

$              23.15

$           22.38

$          19.50


$           23.15

$          19.50








Return on average stockholders' equity (GAAP)

11.19%

10.78%

11.16%


10.75%

9.97%

Add: Effect of intangible assets

1.46%

1.46%

1.76%


1.47%

1.37%

Return on average tangible common equity (non-GAAP)

12.65%

12.24%

12.92%


12.22%

11.34%








Total tax free interest income (GAAP)







Loans receivable

$                  98

$              101

$             106


$              302

$            314

Investment securities

1,236

1,184

1,185


3,628

3,268

Total tax free interest income

$              1,334

$           1,285

$          1,291


$           3,930

$          3,582

Total tax free interest income, gross (at 21%)

$              1,689

$           1,627

$          1,634


$           4,975

$          4,534








Net interest margin, tax equivalent (non-GAAP)







Net interest income (GAAP)

$            16,245

$         16,044

$        16,417


$         48,331

$        46,609

Add: Tax effect tax free interest income (3)

355

342

343


1,045

952

Net interest income (non-GAAP)

16,600

16,386

16,760


49,376

47,561

Divided by: Average interest-earning assets

1,923,938

1,928,214

1,878,841


1,921,675

1,788,811

Net interest margin, tax equivalent

3.45%

3.40%

3.57%


3.43%

3.55%








One-time Universal merger related expenses







Non-tax deductible

$                   -

$                -

$               -


$                -

$            220

Tax deductible

-

-

238


-

2,010

Total one-time merger related expenses

$                   -

$                -

$             238


$                -

$          2,230

Subtract tax benefit

-

-

50


-

422

Net one-time merger related expenses

$                   -

$                -

$             188


$                -

$          1,808

Net income (GAAP)

-

-

5,402


-

13,573

Net income excluding one-time merger expenses (non-GAAP)

$                   -

$                -

$          5,590


$                -

$        15,381








Adjusted diluted earnings per share







Net income excluding one-time merger expenses (non-GAAP)

$                   -

$                -

$          5,590


$                -

$        15,381

Average diluted shares

-

-

8,733,691


-

8,479,908

Adjusted diluted earnings per share (non-GAAP)

$                   -

$                -

$            0.64


$                -

$           1.81








Adjusted return on assets







Net income excluding one-time merger expenses (non-GAAP)

$                   -

$                -

$          5,590


$                -

$        15,381

Average assets

-

-

2,012,937


-

1,915,010

Adjusted return on average assets (non-GAAP)

-

-

1.11%


-

1.07%








Adjusted return on tangible common equity







Net income excluding one-time merger expenses (non-GAAP)

$                   -

$                -

$          5,590


$                -

$        15,381

Average tangible common equity 

-

-

167,207


-

159,570

Adjusted return on average tangible common equity (non-GAAP)

-

-

13.37%


-

12.85%








Ratio Summary:







Return on average equity

11.19%

10.78%

11.16%


10.75%

9.97%

Return on average tangible common equity

12.65%

12.24%

12.92%


12.22%

11.34%

Return on average assets

1.18%

1.11%

1.07%


1.10%

0.95%

Tangible common equity to tangible assets

9.60%

9.27%

8.39%


9.60%

8.39%

Net interest margin, tax equivalent

3.45%

3.40%

3.57%


3.43%

3.55%








(1)   Pre-tax pre-provision income is calculated by taking net income available to common shareholders and adding income tax provision and provision for loan losses.








(2)   Calculated net of deferred loan fees, loan discounts, loans in process and loss reserves.













(3)   Tax equivalent margin is calculated by taking non-taxable interest and grossing up by 21% applicable tax rate.











(4)   Ratios for the three and nine month periods have been annualized.














(5)   Net interest income divided by average interest earning assets.














(6)   Performing restructured loans are excluded from non-performing ratios.  Restructured loans that are on non-accrual are in the non-accrual loan categories.

 

 

Cision View original content:http://www.prnewswire.com/news-releases/mutualfirst-announces-record-earnings-for-the-third-quarter-of-2019-300942149.html

SOURCE MutualFirst Financial, Inc.