Investor Relations
Dear Shareholder:
We hope all of you are having a good start to the new year. For the
company, 2023 is now in the books and we are looking forward to better
results in 2024. It is beginning to sound like a broken record, but
margins continue to be a challenge for us. However, we are starting to
see improvements that should continue each quarter as we move forward.
During the fourth quarter, we recorded earnings of $619,574 compared to
$1,180,926 last quarter and $1,409,068 for the fourth quarter of 2022. Earnings
per share were $0.47 for the period versus $0.89 for last quarter and $1.06 for
the same quarter last year. Year-to-date earnings were $3,805,521 versus
$5,346,494 for 2022. Earnings per share were at $2.86 versus $4.02 a year ago.
Year-to-date Midwest Bank had a ROA of 0.64%, compared to our local peer
group of 0.89%. Our net interest margin (NIM) was at 2.85% versus 3.29%
for our peers. Our Leverage (Capital) Ratio was at 9.13% versus 10.09%
for the group. Strategic initiatives to position our balance sheet for
the expected declining rate environment have been made to enhance our
overall profitability.
Average loans were up for the quarter and stood at $377.2 million versus
$372.9 million for the prior quarter and $341.6 million for the same
period last year. We had another excellent quarter for loan growth,
which will have a positiveimpact going forward.
Investments were down with an average of $207.6 million versus $220.2
million for the prior quarter and $230.1 for the same period last year.
The decrease is due to cashflow from the portfolio not being reinvested
and an increase in the unrealized loss on the portfolio. We continue our
strategy to use the future cashflows from our portfolio to fund loan
growth.
Average deposits were down at $521.3 million compared to $531.8 million
last quarter and from the $534.0 million for the same period last year.
Our team continues to work diligently in both competing for local
deposits and managing our overall cash position. This has included the
use of multiple funding sources that help control funding costs and
reduce interest rate risk.
Credit quality remains strong and metrics are in line with our goals. Non-
accrual Loans to Loans were at 0.31% and below peer of 0.54%. Charge-offs to
Loans were at 0.05% for the quarter versus peer of 0.06%. Loan loss reserve
balance was at 1.13% of total loans compared with our peers at 1.34%.
Porter-Hay Insurance recently announced the acquisition of North-And
Company located in Galva, Illinois. They offer both crop insurance and
grain marketing advisory services and are led by David North and Jim
Anderson. We are excited to have them as part of agricultural insurance
team.
We had 100 shares trade during the quarter at $37.50 per share. As always if you have an interest in selling or buying,
please contact Brooke Robinson (309-457-6284 / Brooke.Robinson@mbwi.com)
or Chris (309-457-6227 / Chris.Gavin@mbwi.com)
with the number of shares and the selling, or offering price.
Please mark your calendars for our annual shareholder meeting and
reception, which is to be held April 24th. Invitations, including
additional details and proxies, will be sent out later next month. We
look forward sharing our strategic and growth initiatives with you at
this event.
Best Regards, Gus Hart & Chris Gavin
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