Macatawa Bank Corp (MCBC) Reports Q3 2023 Earnings
MCBC reported a net income of $11.4 million in Q3 2023, up from $10.0 million in Q3 2022.
Net interest income for Q3 2023 was $22.2 million, an increase from Q3 2022.
Non-interest income slightly decreased in Q3 2023 compared to Q3 2022.
MCBC maintained excellent asset quality with no loan delinquencies as of September 30, 2023.
Macatawa Bank Corp (NASDAQ:MCBC) announced its Q3 2023 results on October 26, 2023. The company reported a net income of $11.4 million, or $0.33 per diluted share, compared to $10.0 million, or $0.29 per diluted share, in Q3 2022. For the first nine months of 2023, the company reported a net income of $33.7 million, or $0.98 per diluted share, compared to $22.6 million, or $0.66 per diluted share, for the same period in 2022.
Financial Performance
Jon Swets, incoming President and CEO of MCBC, commented on the results:
We are pleased to report strong profitability and good balance sheet results for the third quarter 2023. Net interest income for third quarter 2023 was up $2.5 million from third quarter 2022, reflecting benefits from federal funds rate increases and growth in our loan and investment securities portfolios."
MCBC's net interest income for Q3 2023 totaled $22.2 million, an increase of $1.1 million from Q2 2023 and an increase of $2.5 million from Q3 2022. The net interest margin for Q3 2023 was 3.35%, down 1 basis point from Q2 2023 and up 49 basis points from Q3 2022.
Non-interest income slightly increased by $3,000 in Q3 2023 compared to Q2 2023 but decreased by $273,000 from Q3 2022. Non-interest expense was $12.8 million for Q3 2023, compared to $12.7 million for Q2 2023 and $12.1 million for Q3 2022.
Asset Quality and Balance Sheet
MCBC maintained excellent asset quality with no loan delinquencies as of September 30, 2023. The allowance for credit losses of $17.0 million was 1.32% of total loans at the end of Q3 2023. The company's total assets were $2.76 billion at the end of Q3 2023, a decrease of $129.5 million from $2.63 billion at the end of Q2 2023.
MCBC's total deposits were $2.45 billion at the end of Q3 2023, up $124.0 million, or 5.3%, from $2.32 billion at the end of Q2 2023. The company's total risk-based regulatory capital ratio at the end of Q3 2023 was consistent with the ratio at the end of Q2 2023 and Q3 2022.
Looking Ahead
MCBC believes its balance sheet is well-positioned in the current environment. High levels of liquidity, capital, and excellent asset quality put the company in a good position to weather softer economic conditions, should they occur, and to seize loan growth opportunities in its markets.
Explore the complete 8-K earnings release (here) from Macatawa Bank Corp for further details.
This article first appeared on GuruFocus.
