MutualFirst Financial announces record earnings for 2018
Staff Writer |
MutualFirst Financial, the holding company of MutualBank, announced net income available to common shareholders was $5.3 million, or $0.61 diluted earnings per common share for the quarter ended December 31, 2018.
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This compared to net income available to common shareholders for the same period in 2017 of $1.5 million, or $0.19 diluted earnings per common share.
Annualized return on average assets was 1.04% and return on average tangible common equity was 12.56% for the fourth quarter of 2018 compared to 0.37% and 3.89%, respectively, for the same period of last year.
In the fourth quarter of 2017, MFSF recorded an additional tax expense of $2.0 million due to a revaluation of MFSF's deferred tax asset.
Adjusted net income to common shareholders, excluding $1.9 million of one-time merger related expenses, net of tax, was $20.8 million, or $2.43 diluted earnings per common share for year ended 2018.
This compared to net income available to common shareholders of $12.3 million, or $1.64 diluted earnings per common share for the year ended December 31, 2017.
Return on average assets would have been 1.07% and return on average tangible common equity would have been 12.85% for the year ended 2018 compared to 0.78% and 8.52%, respectively, for last year.
Including the one-time merger related expenses, net income available to common shareholders was $18.9 million, or $2.21 diluted earnings per common share for the year ended December 31, 2018.
Annualized return on average assets was 0.97% and return on tangible common equity was 11.66% for the year ended 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's system. ■