HOLLAND, MI (WHTC) – Macatawa Bank Corporation (NASDAQ:MCBC) announced its results for the fourth quarter and full year of 2015 yesterday, reflecting continued improvement in financial performance.
- Net income of $3.5 million in the fourth quarter 2015, up 53% from $2.3 million in the fourth quarter 2014. Full year net income of $12.8 million, up 22% from $10.5 million in 2014
- Strong growth in performing loans – up $87.1 million, or 7.8%, for the full year 2015
- Net interest income increase aided by growth in loans
- Fourth quarter revenue growth of $1.2 million, or 8%, compared to fourth quarter 2014
- Sales of $7.9 million of other real estate owned in the fourth quarter 2015
- Past due loans only 0.11% of total loans at end of 2015, down from 0.25% at the end of 2014
- Nonperforming assets down 50% from fourth quarter 2014
- Strong loan collection results – 2015 was the third consecutive full year of net recoveries
Macatawa reported net income of $3.5 million, or $0.10 per diluted share, in the fourth quarter 2015 compared to $2.3 million, or $0.07 per diluted share, in the fourth quarter 2014. For the full year of 2015, the Company reported net income of $12.8 million, or $0.38 per diluted share, compared to $10.5 million, or $0.31 per diluted share, for the same period in 2014.
“We made excellent progress in 2015 with improved earnings performance and significant reductions in non-performing and substandard assets. Fourth quarter net income grew by 53% over the prior year fourth quarter, and full year net income increased by 22% to $12.8 million over prior year earnings,” said Ronald L. Haan, President and CEO of the Company. “
Mr. Haan continued: “Non-interest income categories also improved during the fourth quarter and for the full year of 2015. Deposit service charges, mortgage banking, and trust service revenues all increased compared to prior periods. We are pleased with the increase in our revenue sources as this diverse growth fosters further stability in our earnings performance.”
At December 31, 2015, the Company’s nonperforming loans had declined to $756,000, representing 0.06 percent of total loans. This compares to $4.2 million (0.35 percent of total loans) at September 30, 2015 and $8.4 million (0.75 percent of total loans) at December 31, 2015. Other real estate owned and repossessed assets were $17.5 million at December 31, 2015, compared to $25.7 million at September 30, 2015 and $28.3 million at December 31, 2014.
Total nonperforming assets, including other real estate owned and nonperforming loans, have decreased by $18.4 million, or 50 percent, from December 31, 2014 to December 31, 2015.
