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FINANCIAL UPDATE
We are out of the gates and off to a great start!
ROGER MEALY, Executive Vice President/Chief Financial Officer, Midwest Independent Bancshares, Inc.
Midwest Independent Bank had a great year in 2016 and we have not let our foot off of the gas pedal. Te first quarter of 2017 delivered net earnings of $877,000 and an ROA of 1.11 percent. Excluding a couple of one-time events during the quarter which were accretive to earnings, ROA would have been 0.82 percent – a nice improvement over total year 2016 of 0.75 percent. As a Bankers’ Bank our target ROA is about 0.75 percent. Assets totaled $312 million at the end
of March, an increase of $24 million from the beginning of the year, primarily a result of an increase in our Cash & Due. Loan portfolio balances bucked the
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historical trends during the first quarter as we did not have the level of paydowns/pay- offs that we normally experience. We ended the quarter with more than $130 million in gross loans, an increase of $7 million since the beginning of the year. We had one of the most active quarters in a long time with approving and closing new loans, advanc- es on existing loans, loan renewals, and selling participations to our downstream respondent banks. Our investment portfolio continues to
slowly increase and we have seen a decline in the amount of calls prior to maturity. Te portfolio ended the quarter at $59 million. We continue to work diligently in conjunction with First Bankers’ Banc Securities to keep our investment portfolio conservative and sound, while putting some excess cash to work. MIB operates at a much higher level
than our asset size would suggest. At the end of the year, we had $5.2 billion in assets under management and it repre- sents the highest level in our history. Tis amount not only includes the book assets, but loans sold downstream to respondent banks, Fed Funds Pool, EBA Pool, and Safekeeping assets.
Our total deposit levels remained
relatively strong through the first quarter of the year as our respondent banks’ liquidity levels have held fairly steady. We ended the quarter with $265 million in total deposits, an increase of $27 million for the quarter. We continue to hold noninterest ex-
penses in check. MIB consistently has one of the lowest efficiency ratios among our bankers’ bank peer group, and we delivered an efficiency ratio of 64.3 percent for the first quarter, which was the lowest among our Bankers’ Bank peer group, and well below the peer average of 83.2 percent. MIB continues to be well capitalized
with a Common Equity Tier 1 Capital Ratio (CET1) of 22.12 percent, a Tier 1 Leverage Ratio of 11.97 percent, and Total Capital Ratio of 23.39 percent. Continual improvements are being made in credit quality which has had a favorable impact on our credit-related ratios. Te Classified Assets to Capital ratio was at 4.99 percent at the end of March and the Texas Ratio ended the quarter at 3.19 percent. Both of these ratios show a substantial improve- ment during the first quarter as we sold one of our three remaining OREO properties. We continue to see steady declines as we sell individual units in the two remaining OREO multi-unit projects. In January we paid out a cash dividend
of $2.10 to the shareholders of Midwest Independent Bancshares, Inc. – our second consecutive year of dividend payments. We look forward to another strong
year in 2017. Whether it’s our great staff at MIB, First Bankers’ Banc Securities, Inc., MIB Banc Services, LLC, or Midwest In- dependent Bancshares, Inc., we are all here to help our customers succeed and look forward to the opportunity to assist you.
4 MIDWEST INDEPENDENT BANK MIBANC.com