Mutualfirst announces Third Quarter results

MUNCIE, IND

MutualFirst Financial, the holding company of MutualBank, announced today net income to common shareholders for the third quarter ended September 30, 2012 of $1.8 million, or $.26 for basic and diluted earnings per common share.

This compared to net income available to common shareholders for the same period in 2011 of $596,000, or $.09 for basic and diluted earnings per common share. Annualized return on assets was .59% and return on average tangible common equity was 6.83% for the third quarter of 2012 compared to .41% and 2.37% respectively, for the same period of last year. Net income available to common shareholders for the nine months ended September 30, 2012 was $4.2 million, or $.60 for basic earnings per common share and $.59 for diluted earnings per common share compared to net income available to common shareholders of $682,000, or $.10 for basic and diluted earnings per common share for the nine months ended September 30, 2011. Annualized return on assets was .48% and return on average tangible common equity was 5.31% for the nine months ended in 2012 compared to .23% and .93% respectively, for the same period of last year.

Other financial highlights for the third quarter ended September 30, 2012 included gross loans increased $8.5 million in the third quarter of 2012.

Deposits increased $21.5 million in the third quarter of 2012. Tangible common equity increased to 7.33% in the third quarter of 2012 and tangible book value increased to $15.40.

Non-performing assets declined $2.2 million, or 6.7% in the third quarter of 2012 and declined $8.6 million, or 21.9% compared to December 31, 2011. Classified assets declined $5.8 million, or 9.5% in the third quarter of 2012. Net charge offs on an annualized basis were .81% in the third quarter of 2012 compared to 1.11% in the same period of 2011. Net charge offs on a linked quarter decreased from 1.04%.

Net interest margin was 3.05% for the third quarter of 2012 compared to 3.19% in the same period of 2011. On a linked quarter basis, net interest margin declined from 3.10%. Non-interest income for the quarter ended September 30, 2012 decreased $283,000 compared to the same period in 2011. On a linked quarter basis, noninterest income increased $676,000.

Non-interest expense for the third quarter of 2012 increased $97,000 over the same period in 2011. Non-interest expense increased $200,000 over the linked quarter.