FINANCIAL UPDATE Holding steady; consistent earnings


Net earnings of Midwest Independent Bank for the third quarter of 2018 totaled $588,000 and $1.7 million on a year-to-date basis, delivering a year-to-date ROA of 0.80 percent. As a benchmark for your Bankers’ Bank, our target ROA is about 0.75 percent. Assets totaled $280 million at the end


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


rmealy@mibanc.com


of September, a decrease of $41 million from the beginning of the year but is pretty much in line with our year-to-date average of $290 million. This decrease was primarily driven by a decrease in our Due From Fed account and our Cash Letter clearing account, both at exceptionally high levels on the last day of 2017. Our loan portfolio totaled just under


$145 million and has held steady to slightly growing since some initial paydowns/payoffs at the beginning of the year. This equates to 71.1 percent of deposits. Our OREO ended the quarter at just


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 and protect both your bank’s and your customer’s confidential information:


• External Penetration Tests/External Vulnerability Assessment


• Internal Penetration Tests/Network Assessment


• IT Security Audit • Social Engineering


$15,000, a decrease of $748,000 from the beginning of the year. Our Texas Ratio is at 0.03% and Classified Loans stand at 1.11%—both at the lowest level in years. We continue to have no Delinquent Loans. Continual improvements are being made in credit quality which has had a favorable impact on these credit-related ratios. We have chosen to maintain our


investment portfolio this year so we have experienced a slow decrease due to normal paydowns in mortgage backed securities and other natural maturities. Our entire portfolio is just under $52 million (18.6 percent of assets), a small decrease of $3 million since the beginning of the year. We continue to work diligently in conjunction with First Bankers’ Banc Securities to keep our investment portfolio conservative and sound. Our total deposit levels have continued to shrink slightly throughout the summer


months due to tightened seasonal liquidity in our customer banks, but still have total deposits at quarter-end of $196 million. MIB operates at a much higher level


than our asset size would suggest. At the end of the quarter, we had $5.3 billion in assets under management, and have maintained between $5.2 billion and $5.6 billion all year. 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 20.39 percent, a Tier 1 Leverage Ratio of 13.26 percent, and Total Capital Ratio of 21.66 percent. We have received several inquiries


about how to handle our stock with some of the new accounting rules and Call Report changes going into effect. Our bankers’ bank stock does not have a readily determinable fair value and the selling price is not available on a securities exchange. Therefore, it can be treated the same as stock in the FHLB and/or Federal Reserve. If you have not adopted ASU 2016-01 (which most community banks would not have chosen to adopt) then our stock is reported at historical cost. We have confirmed these assumptions using an FDIC webinar from April 5, 2018 as well as FFIEC Call Report instructions for schedule RC-F line 4. Contact me with any questions or if you would like to receive a copy of the supporting documentation. 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


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16