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MutualFirst Announces Earnings for the Third Quarter of 2018

MUNCIE, Ind., Oct. 25, 2018 /PRNewswire/ -- MutualFirst Financial, Inc. (MFSF), the holding company of MutualBank (the "Bank"), announced today adjusted net income available to common shareholders, excluding $188,000 of one-time merger related expenses, net of tax, for the third quarter ended September 30, 2018 was $5.6 million, or $0.64 diluted earnings per common share.  This compared to net income available to common shareholders for the same period in 2017 of $3.8 million, or $0.50 diluted earnings per common share. The adjusted net income for the third quarter ended September 30, 2018 represents an annualized return on average assets of 1.11% and return on average tangible common equity of 13.37% for the third quarter of 2018 compared to 0.95% and 10.24%, respectively, for the same period of last year. 

Including the one-time merger related expenses, net income available to common shareholders for the third quarter ended September 30, 2018 was $5.4 million, or $0.62 diluted earnings per common share.  Annualized return on average assets was 1.07% and return on average tangible equity was 12.92% for the third quarter of 2018.

Adjusted net income available to common shareholders, excluding $1.8 million of one-time merger related expenses, net of tax, for the nine months ended September 30, 2018 was $15.4 million, or $1.81 diluted earnings per common share, compared to net income available to common shareholders of $10.9 million, or $1.45 diluted earnings per common share for the nine months ended September 30, 2017.  The adjusted net income for the nine months ended September 30, 2018 represents an annualized return on average assets of 1.07% and return on average tangible common equity of 12.85% for the first nine months of 2018 compared to 0.92% and 10.14%, respectively, for the same period of last year.

Including the one-time merger related expenses, net income available to common shareholders for the nine months ended September 30, 2018 was $13.6 million, or $1.60 diluted earnings per common share.  Annualized return on average assets was 0.95% and return on average tangible common equity was 11.34% for the nine months ended September 30, 2018.

On February 28, 2018, MutualFirst Financial, Inc. closed its acquisition of Universal Bancorp and merged Universal's wholly owned subsidiary, BloomBank, into MutualFirst Financial's wholly owned subsidiary, MutualBank.  At closing, this acquisition increased total assets by approximately $398 million, total investments by $88 million, net loans by $253 million and total deposits by $315 million.  As a result of the acquisition, initial goodwill generated was $21 million and the core deposit intangible was $4.5 million.  On April 23, 2018, the system conversion was completed to merge all of the BloomBank customers into MutualBank.

"As we put our acquisition behind us, we are pleased to see a realization of the value of that investment," said David W. Heeter, President and CEO. "We are excited about the opportunities to continue our performance momentum."

Balance Sheet

Assets increased $432 million as of September 30, 2018 compared to December 31, 2017 primarily due to the acquisition of Universal.  The gross loan portfolio increased by $294 million primarily due to acquiring the $253 million net loan portfolio of Universal in the first quarter of 2018.  Non-residential consumer loans have been the primary source of organic loan growth increasing by $57 million in the first nine months of 2018. The loan mix is 45.9% commercial loans, 37.0% residential loans and 17.1% non-residential consumer loans as of September 30, 2018 compared to 40.3%, 43.3% and 16.4%, respectively as of December 31, 2017.

Deposits increased by $329 million in the first nine months of 2018 primarily due to an increase of $315 million from the acquisition.  As of September 30, 2018, core deposits totaled $1.0 billion, or 68.1% of total deposits and certificates of deposit totaled $489 million, or 31.9% of total deposits.  This is compared to a mix of core deposits of 69.1% and certificates of deposit of 30.9% as of December 31, 2017. 

Allowance for loan losses increased to $13.0 million as of September 30, 2018 compared to $12.4 million as of December 31, 2017.  The allowance for loan losses to non-performing loans as of September 30, 2018 was 227% compared to 236% as of December 31, 2017.  The allowance for loan losses to total loans as of September 30, 2018 was 0.88% compared to 1.05% as of December 31, 2017.  Non-performing loans to total loans at September 30, 2018 were 0.39% compared to 0.44% at December 31, 2017.  Non-performing assets to total assets were 0.36% at September 30, 2018 compared to 0.38% at December 31, 2017.

Stockholders' equity was $193.7 million at September 30, 2018, an increase of $43.4 million from December 31, 2017. The increase was primarily due to $42.3 million of capital issued as part of the acquisition of Universal and net income available to common shareholders of $13.6 million during the nine months ended September 30, 2018.  These increases were partially offset by a decrease in accumulated other comprehensive income of $8.0 million and common stock dividends of $4.6 million for the first nine months of 2018.  The Company's tangible book value per common share as of September 30, 2018 was $19.50 compared to $20.08 as of December 31, 2017 and the tangible common equity ratio decreased to 8.39% as of September 30, 2018 compared to 9.35% as of December 31, 2017.  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, 2018.

Income Statement

Net interest income before the provision for loan losses increased $4.2 million for the quarter ended September 30, 2018 compared to the same period in 2017.  The increase in net interest income was primarily a result of an increase of $403 million in average interest-earning assets, due to the acquisition in the first quarter of 2018 and organic loan growth.  This increase was aided by an increase of seventeen basis points in net interest margin to 3.50%, while the tax equivalent margin increased thirteen basis points to 3.57%.  The increase in net interest margin is a result of the yield on earning assets increasing thirty-seven basis points partially offset by an increase in the cost of interest-bearing liabilities of twenty-five basis points.  Net interest margin was also aided in the quarter by approximately six basis points of purchase accounting adjustments.   On a linked quarter basis, net interest income decreased by $191,000 primarily due to a reduction in the amount of purchase accounting adjustments compared to the second quarter.

Net interest income before the provision for loan losses increased $10.5 million for the first nine months of 2018 compared to the same period in 2017.  The increase was a result of an increase of $321 million in average interest-earning assets due to the acquisition in the first quarter of 2018 and organic loan growth. The increase was aided by an increase of nineteen basis points in net interest margin to 3.47% compared to 3.28% for the first nine months of 2018. The tax equivalent margin for the first nine months of 2018 was 3.55% compared to 3.38% for the comparable period in 2017. Net interest margin was also aided in the first nine months of 2018 by approximately eight basis points of purchase accounting adjustments.

Provision for loan losses in the third quarter of 2018 was $570,000 compared to $370,000 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.  Net charge-offs in the third quarter of 2018 were $290,000, or 0.08% of average total loans on an annualized basis, compared to $418,000, or 0.14% of average total loans on an annualized basis in the third quarter of 2017.   On a linked quarter basis, provision for loan losses increased $70,000 primarily due to an increasing loan portfolio.

The provision for loan losses for the first nine months of 2018 was $1.5 million compared to $870,000 during last year's comparable period.  The increase was primarily due to our growing loan portfolio.  Net charge-offs for the first nine months of 2018 equaled $898,000, or 0.09% of loans on an annualized basis, compared to $874,000, or 0.10% in the same period of 2017.

Non-interest income for the third quarter of 2018 was $5.0 million, an increase of $605,000 compared to the third quarter of 2017.  This increase was primarily a result of an increase of $373,000 in service fee income on deposit accounts due to increases in interchange fee income along with increases due to the acquisition and an increase of $361,000 in gain on sale of investments in the third quarter of 2018 compared to the same period in 2017.  These increases were partially offset by a decrease of $157,000 in net gain on sale of loans and a decrease of $139,000 in commission income.  On a linked quarter basis, non-interest income increased $235,000 primarily due to an increase of $300,000 in net gain on sale of investments.  This increase was partially offset by a decrease of $247,000 in commission income.

Non-interest income for the first nine months of 2018 was $14.3 million, an increase of $1.1 million compared to the first nine months of 2017.  The reasons for the increase include a $782,000 improvement in service fee income on deposit accounts for the reasons mentioned above, a $362,000 improvement in other income primarily due to a death benefit received on life insurance in the first quarter of 2018 and a $213,000 improvement in net gain on sale of investments compared to the first nine months of 2017.  These improvements were partially offset by a decline of $501,000 in net gain on sale of mortgage loans primarily due to fewer mortgage loans being sold in 2018 compared to 2017.

Non-interest expense increased $3.1 million when comparing the third quarter of 2018 with the same period in 2017.  The increase was primarily due to the acquisition and integration of Universal.  One-time pretax merger-related expenses, primarily in ATM and debit card expenses, professional fees and other expenses, were $238,000 in the third quarter of 2018 with no similar activity in the same period of 2017.  On a linked quarter basis, non-interest expense decreased $1.6 million primarily due to a decrease in one-time pretax merger-related expenses of $1.2 million and other cost saves realized after the integration of Universal.

Non-interest expense increased $9.6 million when comparing the first nine months of 2018 with the same period in 2017.  The increase was directly related to the acquisition and integration of Universal into MutualFirst in the first nine months of 2018.  One-time pretax merger-related expenses were $2.2 million in the first nine months of 2018.

The effective tax rate for the third quarter of 2018 was 14.4% compared to 23.2% in the same quarter of 2017. The primary reason for the decline was the reduction of the corporate tax rate to 21%. 

The effective tax rate for the first nine months of 2018 was 13.3% compared to 24.4% for the same period in 2017. The primary reason for the decline was the reduction of the corporate tax rate to 21%. 

Heeter concluded, "With the integration of Universal behind us, our focus will be to create sustainable momentum in earnings and continue to increase 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):

2018

2018

2017

2017





(000)

(000)

(000)

(000)




Assets








Cash and cash equivalents

$            31,872

$         33,005

$        27,341

$         25,751




Interest-bearing time deposits

4,236

4,482

1,853

1,937




Investment securities - AFS

360,747

362,162

277,378

260,072




Loans held for sale

7,434

3,927

4,577

4,786




Loans, gross

1,474,383

1,464,735

1,180,145

1,190,145




Allowance for loan losses

(13,009)

(12,729)

(12,387)

(12,378)




Net loans

1,461,374

1,452,006

1,167,758

1,177,767




Premises and equipment, net

25,628

25,984

21,539

21,281




FHLB of Indianapolis stock

12,820

12,820

11,183

11,183




Deferred tax asset, net

12,151

11,492

7,530

10,487




Cash value of life insurance

59,845

59,531

52,707

52,430




Other real estate owned and repossessed assets

1,530

1,942

733

438




Goodwill

22,479

22,479

1,800

1,800




Core deposit and other intangibles

3,818

4,134

127

172




Other assets

17,237

17,388

14,406

13,710




Total assets

$       2,021,171

$     2,011,352

$    1,588,932

$     1,581,814












Liabilities and Stockholders' Equity








Deposits

$       1,531,198

$     1,520,234

$    1,202,034

$     1,198,962




FHLB advances

261,150

263,367

217,163

212,563




Other borrowings

17,963

18,037

4,232

4,221




Other liabilities

17,150

17,026

15,221

15,843




Stockholders' equity

193,710

192,688

150,282

150,225




Total liabilities and stockholders' equity

$       2,021,171

$     2,011,352

$    1,588,932

$     1,581,814







Three Months

Three Months

Three Months

Three Months


Nine Months

Nine Months


Ended

Ended

Ended

Ended


Ended

Ended


September 30,

June 30,

December 31,

September 30,


September 30,

September 30,

Income Statement (Unaudited):

2018

2018

2017

2017


2018

2017


(000)

(000)

(000)

(000)


(000)

(000)









Total interest and dividend income

$            20,836

$         20,621

$        15,081

$         15,026


$         58,204

$         43,787

Total interest expense

4,419

4,013

2,888

2,762


11,595

7,723









   Net interest income

16,417

16,608

12,193

12,264


46,609

36,064

Provision for loan losses

570

500

350

370


1,520

870

Net interest income after provision 








  for loan losses

15,847

16,108

11,843

11,894


45,089

35,194









  Non-interest income








Service fee income

2,024

1,959

1,819

1,651


5,547

4,765

Net realized gain on sales of AFS securities

406

106

255

45


666

453

Commissions

1,121

1,368

1,253

1,260


3,751

3,774

Net gain on sale of loans

853

736

1,162

1,010


2,224

2,725

Net servicing fees

129

154

85

109


433

306

Increase in cash value of life insurance

313

322

278

275


924

835

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

23

11

(87)

(14)


(34)

(35)

Other income

170

148

83

98


766

405

Total non-interest income

5,039

4,804

4,848

4,434


14,277

13,228









  Non-interest expense








Salaries and employee benefits

8,152

8,628

7,098

6,871


24,069

20,131

Net occupancy expenses

1,087

995

773

788


2,979

2,360

Equipment expenses

635

698

466

442


1,889

1,307

Data processing fees

669

676

622

604


1,938

1,699

Advertising and promotion

416

499

318

290


1,275

905

ATM and debit card expense

664

573

392

457


1,708

1,284

Deposit insurance

209

225

162

181


691

562

Professional fees

460

472

680

372


1,714

1,175

Software subscriptions and maintenance

702

691

541

525


1,987

1,661

Other real estate and repossessed assets

51

44

45

39


140

120

Other expenses

1,529

2,662

840

876


5,324

2,864

Total non-interest expense

14,574

16,163

11,937

11,445


43,714

34,068









Income before income taxes

6,312

4,749

4,754

4,883


15,652

14,354

Income tax provision

910

584

3,294

1,132


2,079

3,499

Net income available to common shareholders

$              5,402

$           4,165

$          1,460

$           3,751


$         13,573

$         10,855









Pre-tax pre-provision earnings (1)

$              6,882

$           5,249

$          5,104

$           5,253


$         17,172

$         15,224



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










Three



Three





months ended



months ended





9/30/2018



9/30/2017




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

$            21,654

$               58

1.07%

$         18,080

$               28

0.62%


 Mortgage-backed securities:








Available-for-sale

210,518

1,433

2.72

153,464

917

2.39


 Investment securities:








Available-for-sale

158,671

1,299

3.27

103,047

854

3.31


 Loans receivable

1,475,178

17,902

4.85

1,189,645

13,109

4.41


Stock in FHLB of Indianapolis

12,820

144

4.49

11,183

118

4.22


Total interest-earning assets (2)

1,878,841

20,836

4.44

1,475,419

15,026

4.07


Non-interest earning assets, net of allowance 








  for loan losses and unrealized gain/loss

134,096



97,572




     Total assets

$       2,012,937



$1,572,991




















Interest-Bearing Liabilities:








 Demand and NOW accounts

$          402,393

664

0.66

$       306,906

346

0.45


 Savings deposits

186,659

5

0.01

139,097

4

0.01


 Money market accounts

190,851

253

0.53

173,170

179

0.41


 Certificate accounts

471,061

1,970

1.67

383,426

1,275

1.33


 Total deposits

1,250,964

2,892

0.92

1,002,599

1,804

0.72


 Borrowings

270,940

1,527

2.25

215,327

958

1.78


  Total interest-bearing liabilities

1,521,904

4,419

1.16

1,217,926

2,762

0.91


Non-interest bearing deposit accounts

279,574



190,997




Other liabilities

17,788



15,603




  Total liabilities

1,819,266



1,424,526




Stockholders' equity

193,671



148,465




    Total liabilities and stockholders' equity

$       2,012,937



$     1,572,991












Net interest earning assets

$          356,937



$       257,493












Net interest income


$         16,417



$         12,264











Net interest rate spread (4)



3.27%



3.17%










Net yield on average interest-earning assets (4)



3.50%



3.33%










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



3.57%



3.44%










Average interest-earning assets to








  average interest-bearing liabilities



123.45%



121.14%




















Nine



Nine





months ended



months ended





9/30/2018



9/30/2017




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

$            22,991

$              188

1.09%

$         21,188

$               89

0.56%


 Mortgage-backed securities:








Available-for-sale

199,540

4,002

2.67

158,064

2,893

2.44


 Investment securities:








Available-for-sale

147,801

3,589

3.24

96,194

2,344

3.25


 Loans receivable

1,406,011

49,965

4.74

1,181,566

38,112

4.30


Stock in FHLB of Indianapolis

12,468

460

4.92

11,161

349

4.17


Total interest-earning assets (2)

1,788,811

58,204

4.34

1,468,173

43,787

3.98


Non-interest earning assets, net of allowance 








  for loan losses and unrealized gain/loss

126,199



97,736




     Total assets

$       1,915,010



$1,565,909




















Interest-Bearing Liabilities:








 Demand and NOW accounts

$          383,120

1,683

0.59

$       301,553

846

0.37


 Savings deposits

178,605

15

0.01

139,433

11

0.01


 Money market accounts

193,928

724

0.50

171,497

431

0.34


 Certificate accounts

444,413

5,116

1.53

385,240

3,615

1.25


 Total deposits

1,200,066

7,538

0.84

997,723

4,903

0.66


 Borrowings

254,317

4,057

2.13

221,750

2,820

1.70


  Total interest-bearing liabilities

1,454,383

11,595

1.06

1,219,473

7,723

0.84


Non-interest bearing deposit accounts

262,137



186,059




Other liabilities

17,021



15,585




  Total liabilities

1,733,541



1,421,117




Stockholders' equity

181,469



144,792




    Total liabilities and stockholders' equity

$       1,915,010



$     1,565,909












Net interest earning assets

$          334,428



$       248,700












Net interest income


$         46,609



$         36,064











Net interest rate spread (4)



3.28%



3.13%










Net yield on average interest-earning assets (4)



3.47%



3.28%










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



3.55%



3.38%










Average interest-earning assets to








  average interest-bearing liabilities



122.99%



120.39%



















Three Months

Three Months

Three Months

Three Months


Nine Months

Nine Months


Ended

Ended

Ended

Ended


Ended

Ended


September 30,

June 30,

December 31,

September 30,


September 30,

September 30,

  Selected Financial Ratios and Other Financial Data (Unaudited):

2018

2018

2017

2017


2018

2017

























Share and per share data:








 Average common shares outstanding:








   Basic

8,587,424

8,577,017

7,389,394

7,373,408


8,327,963

7,350,182

   Diluted

8,733,691

8,731,611

7,526,416

7,513,078


8,479,908

7,493,831

 Per common share:








   Basic earnings

$               0.63

$             0.49

$            0.20

$             0.51


$             1.63

$             1.48

   Diluted earnings 

$               0.62

$             0.48

$            0.19

$             0.50


$             1.60

$             1.45

   Dividends

$               0.18

$             0.18

$            0.18

$             0.16


$             0.54

$             0.48









Dividend payout ratio

29.03%

37.50%

94.74%

32.00%


33.75%

33.10%









Performance Ratios:








   Return on average assets (ratio of net








      income to average total assets)(4)

1.07%

0.83%

0.37%

0.95%


0.95%

0.92%

   Return on average tangible common equity (ratio of net 








      income to average tangible common equity)(4)

12.92%

10.46%

3.89%

10.24%


11.34%

10.14%

   Interest rate spread information:








    Average during the period(4)

3.27%

3.36%

3.11%

3.17%


3.28%

3.13%









    Net interest margin(4)(5)

3.50%

3.56%

3.27%

3.33%


3.47%

3.28%









Efficiency Ratio

67.93%

75.49%

70.05%

68.54%


71.80%

69.11%









    Ratio of average interest-earning








     assets to average interest-bearing








     liabilities

123.45%

123.05%

121.44%

121.14%


122.99%

120.39%









Allowance for loan losses:








       Balance beginning of period

$            12,729

$         12,537

$        12,378

$         12,426


$         12,387

$         12,382

        Net charge-offs (recoveries):








Real Estate:








Commercial

0

0

0

0


53

(1)

Commercial construction and development

0

0

0

0


0

0

Consumer closed end first mortgage

65

56

24

126


133

247

Consumer open end and junior liens

16

20

0

13


36

21

Total real estate loans

81

76

24

139


222

267

Other loans:








Auto

47

(1)

5

1


36

27

Boat/RV

65

185

208

161


381

395

Other

72

58

37

46


160

114

Commercial and industrial

25

(10)

67

71


99

71

Total other

209

232

317

279


676

607









Net charge-offs (recoveries)

290

308

341

418


898

874

Provision for loan losses

570

500

350

370


1,520

870

Balance end of period

$            13,009

$         12,729

$        12,387

$         12,378


$         13,009

$         12,378









    Net loan charge-offs to average loans (4)

0.08%

0.08%

0.11%

0.14%


0.09%

0.10%


























September 30,

June 30,

December 31,

September 30,





2018

2018

2017

2017












Total shares outstanding

8,587,424

8,587,424

7,389,394

7,389,394




Tangible book value per common share

$              19.50

$           19.34

$          20.08

$           20.06




Tangible common equity to tangible assets

8.39%

8.37%

9.35%

9.38%












 Nonperforming assets (000's)








Non-accrual loans








Real Estate:








Commercial

$              1,759

$           1,753

$          1,107

$              929




Commercial construction and development

52

-

-

-




Consumer closed end first mortgage

2,503

2,661

3,409

2,132




Consumer open end and junior liens

205

251

309

245




Total real estate loans

4,519

4,665

4,825

3,306




Other loans:








Auto

40

31

22

13




Boat/RV

696

290

198

288




Other

48

92

16

2




Commercial and industrial

416

183

159

76




Total other

1,200

596

395

379




Total non-accrual loans

5,719

5,261

5,220

3,685




Accruing loans past due 90 days or more

0

15

31

577




Total nonperforming loans

5,719

5,276

5,251

4,262




    Real estate owned

1,195

1,584

251

96




    Other repossessed assets

335

358

482

342




 Total nonperforming assets

$              7,249

$           7,218

$          5,984

$           4,700












Performing restructured loans (6)

$              2,148

$           1,525

$          1,389

$           1,405












Asset Quality Ratios:








Non-performing assets to total assets 

0.36%

0.36%

0.38%

0.30%




Non-performing loans to total loans

0.39%

0.36%

0.44%

0.36%




Allowance for loan losses to non-performing loans

227%

241%

236%

290%




Allowance for loan losses to loans receivable

0.88%

0.87%

1.05%

1.04%





















Three Months

Three Months

Three Months

Three Months


Nine Months

Nine Months


Ended

Ended

Ended

Ended


Ended

Ended


September 30,

June 30,

December 31,

September 30,


September 30,

September 30,

Non-GAAP Measurements (7)

2018

2018

2017

2017


2018

2017









Total stockholders' equity (GAAP)

$          193,710

$       192,688

$      150,282

$       150,225


$       193,710

$       150,225

Less: Intangible assets

26,297

26,613

1,927

1,972


26,297

1,972

Tangible common equity (non-GAAP)

$          167,413

$       166,075

$      148,355

$       148,253


$       167,413

$       148,253









Total assets (GAAP)

$       2,021,171

$     2,011,352

$    1,588,932

$     1,581,814


$     2,021,171

$     1,581,814

Less: Intangible assets

26,297

26,613

1,927

1,972


26,297

1,972

Tangible assets (non-GAAP)

$       1,994,874

$     1,984,739

$    1,587,005

$     1,579,842


$     1,994,874

$     1,579,842









Tangible common equity to tangible assets (non-GAAP)

8.39%

8.37%

9.35%

9.38%


8.39%

9.38%









Book value per common share (GAAP)

$              22.56

$           22.44

$          20.34

$           20.33


$           22.56

$           20.33

Less: Effect of intangible assets

3.06

3.10

0.26

0.27


3.06

0.27

Tangible book value per common share

$              19.50

$           19.34

$          20.08

$           20.06


$           19.50

$           20.06









Return on average stockholders' equity (GAAP)

11.16%

8.90%

3.84%

10.11%


9.97%

10.00%

Add: Effect of intangible assets

1.76%

1.56%

0.05%

0.13%


1.37%

0.14%

Return on average tangible common equity (non-GAAP)

12.92%

10.46%

3.89%

10.24%


11.34%

10.14%









Total tax free interest income (GAAP)








Loans receivable

$                106

$              108

$             104

$              106


$              314

$              320

Investment securities

1,185

1,139

743

702


3,268

2,009

Total tax free interest income

$              1,291

$           1,247

$             847

$              808


$           3,582

$           2,329

Total tax free interest income, gross (at 21%, or 34% prior to 2018)

$              1,634

$           1,578

$          1,283

$           1,224


$           4,534

$           3,529









Net interest margin, tax equivalent (non-GAAP)








Net interest income (GAAP)

$            16,417

$         16,608

$        12,193

$         12,264


$         46,609

$         36,064

Add: Tax effect tax free interest income (3)

343

331

436

416


952

1,200

Net interest income (non-GAAP)

16,760

16,939

12,629

12,680


47,561

37,264

Divided by: Average interest-earning assets

1,878,841

1,866,812

1,489,596

1,475,419


1,788,811

1,468,173

Net interest margin, tax equivalent

3.57%

3.63%

3.39%

3.44%


3.55%

3.38%









One-time merger related expenses








Non-tax deductible

$                   -

$                -




$              220


Tax deductible

238

1,387




2,010


Total one-time merger related expenses

$                238

$           1,387




$           2,230


Subtract tax benefit

50

291




422


Net one-time merger related expenses

$                188

$           1,096




$           1,808


Net income (GAAP)

5,402

4,165




13,573


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

$              5,590

$           5,261




$         15,381










Adjusted diluted earnings per share








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

$              5,590

$           5,261




$         15,382


Average diluted shares

8,733,691

8,731,611




8,479,908


Adjusted diluted earnings per share (non-GAAP)

$               0.64

$             0.60




$             1.81










Adjusted return on assets








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

$              5,590

$           5,261




$         15,382


Average assets

2,012,937

2,002,403




1,915,010


Adjusted return on average assets (non-GAAP)

1.11%

1.05%




1.07%










Adjusted return on tangible common equity








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

$              5,590

$           5,261




$         15,382


Average tangible common equity 

167,207

159,225




159,570


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

13.37%

13.22%




12.85%










Ratio Summary:








Return on average equity

11.16%

8.90%

3.84%

10.11%


9.97%

10.00%

Return on average tangible common equity

12.92%

10.46%

3.89%

10.24%


11.34%

10.14%

Return on average assets

1.07%

0.83%

0.37%

0.95%


0.95%

0.92%

Tangible common equity to tangible assets

8.39%

8.37%

9.35%

9.38%


8.39%

9.38%

Net interest margin, tax equivalent

3.57%

3.63%

3.39%

3.44%


3.55%

3.38%


(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 for 2018 and 34% applicable tax rate prior to 2018.


(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.


(7)   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.

 


 

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