FINANCIAL UPDATE Beginning another good year at MIB


Assets totaled $287 million at the end of March and held pretty steady throughout the quarter. This is in line with our rolling twelve-month average of $291 million. Historically, we experience a natural decline in total assets in the first part of the year, and this year is no different. MIB operates at a much higher level


ROGER MEALY, EVP/Chief Financial Officer, Midwest Independent Bancshares, Inc.


rmealy@mibanc.com


than our asset size would suggest. At the end of the quarter, we had $6.2 billion in assets under management—another all- time high. This amount not only includes the book assets, but loans sold downstream to respondent banks, Fed Funds Pool, EBA Pool, and Safekeeping assets. MIB continues to be well capitalized


with a Common Equity Tier 1 Capital Ratio (CET1) of 20.65 percent, a Tier 1 Leverage Ratio of 13.76 percent, and Total Capital Ratio of 21.91 percent. Our loan portfolio totaled just over


IT SERVICES


Our security risk management services assist financial institutions in mitigating risk to their mission critical data and systems.


The following types of audits that we provide can assist with your due diligence to fight cybersecurity issues and protect both your bank’s and your customer’s confidential information:


• External Penetration Tests/External Vulnerability Assessment


• Internal Penetration Tests/ Internal Vulnerability Assesment


• IT Security Audit • Social Engineering


$138 million at quarter-end and has declined nearly $8 million since the end of the year, primarily due to known scheduled paydowns and payoffs. Our loan to deposit ratio sits at 55.6 percent, which is fairly consistent over the past few months, so yes, we are looking for some more good loans. Please give us a call if you need assistance with an overline loan or if you need to sell a participation to free up some liquidity. Our OREO ended the quarter at


just $15,000, holding steady since the beginning of the year. Our Texas Ratio is at 0.33 percent and Classified Loans Ratio also stands at 0.33 percent. Continual improvements are being made in credit quality which has had a favorable impact on these credit-related ratios over the past couple of years. We have chosen to maintain our


investment portfolio so far this year. We have experienced a slow decrease in holdings, due to normal paydowns in mortgage-backed securities and other natural maturities. We have an improved position in our market value adjustments which slightly outweighs the paydowns/


maturities. Our entire portfolio is just under $52 million (18.0 percent of assets). We continue to work diligently in conjunction with First Bankers’ Banc Securities, Inc. to keep our investment portfolio conservative and sound. Total deposits at quarter-end were


$242 million, an increase of about $34 million from the end of 2018, with increases in customer DDA accounts, our pass-through reserves at the Federal Reserve, and certificates of deposit. This deposit surge is normally short-lived—until tax day, and this year is no exception. Net earnings of Midwest Independent


Bank for the first quarter of 2019 totaled $634,000, delivering a year-to-date ROA of 0.89 percent. Midwest Independent Bancshares, Inc.


made its fourth consecutive annual cash dividend to shareholders of $3.25 per share in January 2019, totaling nearly $355,000. This was an increase from the prior year and just one of the many financial benefits of being a shareholder. In addition to the cash dividend, shareholder banks received the following benefits: interest earned in excess of overnight funds on loan participations purchased of $3.3 million; operational savings related to premium earnings on the DDA earnings credit rate, Fed Funds sold/purchased, and EBA balances, all totaling $198,000; discounts on MIB Banc Services, LLC audits of $46,000; and MIB conference/webinar attendance discounts of $2,100. That totals over $3.9 million of shareholder benefits. Your MIB Relationship Manager would be more than happy to discuss all of the benefits of becoming a shareholder if you are not one today. Whether it’s our great staff at MIB,


First Bankers’ Banc Securities, Inc., MIB Banc Services, LLC, or Midwest Independent 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


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