MainSource Financial Group Inc (MSFG, Financial) filed Quarterly Report for the period ended 2012-06-30.
Mainsource Financial Group Inc. has a market cap of $243 million; its shares were traded at around $11.792 with a P/E ratio of 11.1 and P/S ratio of 1.5. The dividend yield of Mainsource Financial Group Inc. stocks is 0.3%.
The volume and yield of earning assets and interest-bearing liabilities influence net interest income. Net interest income reflects the mix of interest-bearing and non-interest-bearing liabilities that fund earning assets, as well as interest spreads between the rates earned on these assets and the rates paid on interest-bearing liabilities. Second quarter net interest income of $23,750 in 2012 was a slight decrease of 6.5% versus the second quarter of 2011. Average earning assets decreased $32 million with the majority of the decrease the result of reduced loan balances of $75 million. Offsetting this decrease in loans was an increase in the investment portfolio of $61 million. Also affecting margin was an increase in average demand deposits, NOW accounts, and savings accounts of $144 million which offset a decrease in higher costing CD and money market accounts of $183 million. Net interest margin, on a fully-taxable equivalent basis, was 4.05% for the second quarter of 2012, a twenty basis point decrease compared to 4.25% for the same period a year ago and a twelve basis point decrease on a linked quarter basis.
Total assets at June 30, 2012 were $2,766,633, a slight increase from total assets of $2,754,180 as of December 31, 2011. The individual components of the asset side of the balance sheet remained basically the same as the balances at December 31, 2011. This included loan balances which had decreased approximately $150 million in 2011. Gross loan balances increased $12,131 from their December 31, 2011 balance. Average earning assets represented 90.1% of average total assets for the first six months of 2012 and 90.8% for the same period in 2011. Average loans represented 71.4% of average deposits in the first six months of 2012 and 74.1% for the comparable period in 2011. Management continues to emphasize quality loan growth to increase these averages. Average loans as a percent of average assets were 56.1% and 59.1% for the six month periods ended June 30, 2012 and 2011 respectively.
Deposits generated within local markets provide the major source of funding for earning assets. Average total deposits funded 87.2% and 87.9% of total average earning assets for the six-month periods ending June 30, 2012 and 2011. Total interest-bearing deposits averaged 84.6% and 87.5% of average total deposits for the six-month periods ending June 30, 2012 and 2011, respectively. Management constantly strives to increase the percentage of transaction-related deposits to total deposits due to the positive effect on earnings.
Total shareholders equity was $329,858 at June 30, 2012, which was a decrease of $6,695 compared to the $336,553 of shareholders equity at December 31, 2011. The decrease in shareholders equity was primarily attributable to the Companys purchase and retirement of a portion of its preferred shares of $22,626, and payment of preferred and common dividends of $1,154 and $405 respectively, offset by net income of $12,993 for the first six months of 2012, other comprehensive income of $2,785 for the first six months of 2012, and an increase in retained earnings of $1,302 as a result of buying the preferred stock at less than par value.
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Mainsource Financial Group Inc. has a market cap of $243 million; its shares were traded at around $11.792 with a P/E ratio of 11.1 and P/S ratio of 1.5. The dividend yield of Mainsource Financial Group Inc. stocks is 0.3%.
Highlight of Business Operations:
Net income for the second quarter of 2012 was $6,982 compared to net income of $7,626 for the second quarter of 2011. The decrease in net income was primarily attributable to securities gains of $2,521 taken by the Company in the second quarter of 2011 compared to $48 in the second quarter of 2012. Offsetting these gains was a decrease in loan loss provision expense of $1,500 and an increase in mortgage banking income of $902. Diluted earnings per common share for the second quarter totaled $0.32 in 2012, a decrease from the $0.34 reported in the same period a year ago. Key measures of the financial performance of the Company are return on average shareholders equity and return on average assets. Return on average shareholders equity was 8.67% for the second quarter of 2012 while return on average assets was 1.00% for the same period, compared to 9.75% and 1.08% in the second quarter of 2011.The volume and yield of earning assets and interest-bearing liabilities influence net interest income. Net interest income reflects the mix of interest-bearing and non-interest-bearing liabilities that fund earning assets, as well as interest spreads between the rates earned on these assets and the rates paid on interest-bearing liabilities. Second quarter net interest income of $23,750 in 2012 was a slight decrease of 6.5% versus the second quarter of 2011. Average earning assets decreased $32 million with the majority of the decrease the result of reduced loan balances of $75 million. Offsetting this decrease in loans was an increase in the investment portfolio of $61 million. Also affecting margin was an increase in average demand deposits, NOW accounts, and savings accounts of $144 million which offset a decrease in higher costing CD and money market accounts of $183 million. Net interest margin, on a fully-taxable equivalent basis, was 4.05% for the second quarter of 2012, a twenty basis point decrease compared to 4.25% for the same period a year ago and a twelve basis point decrease on a linked quarter basis.
Total assets at June 30, 2012 were $2,766,633, a slight increase from total assets of $2,754,180 as of December 31, 2011. The individual components of the asset side of the balance sheet remained basically the same as the balances at December 31, 2011. This included loan balances which had decreased approximately $150 million in 2011. Gross loan balances increased $12,131 from their December 31, 2011 balance. Average earning assets represented 90.1% of average total assets for the first six months of 2012 and 90.8% for the same period in 2011. Average loans represented 71.4% of average deposits in the first six months of 2012 and 74.1% for the comparable period in 2011. Management continues to emphasize quality loan growth to increase these averages. Average loans as a percent of average assets were 56.1% and 59.1% for the six month periods ended June 30, 2012 and 2011 respectively.
Deposits generated within local markets provide the major source of funding for earning assets. Average total deposits funded 87.2% and 87.9% of total average earning assets for the six-month periods ending June 30, 2012 and 2011. Total interest-bearing deposits averaged 84.6% and 87.5% of average total deposits for the six-month periods ending June 30, 2012 and 2011, respectively. Management constantly strives to increase the percentage of transaction-related deposits to total deposits due to the positive effect on earnings.
Total shareholders equity was $329,858 at June 30, 2012, which was a decrease of $6,695 compared to the $336,553 of shareholders equity at December 31, 2011. The decrease in shareholders equity was primarily attributable to the Companys purchase and retirement of a portion of its preferred shares of $22,626, and payment of preferred and common dividends of $1,154 and $405 respectively, offset by net income of $12,993 for the first six months of 2012, other comprehensive income of $2,785 for the first six months of 2012, and an increase in retained earnings of $1,302 as a result of buying the preferred stock at less than par value.
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