MutualFirst Financial, Inc. reported unaudited earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported net interest income of $16,608,000 against $12,087,000 a year ago. Net interest income after provision for loan losses was $16,108,000 against $11,787,000 a year ago. Income before income taxes was $4,749,000 against $5,240,000 a year ago. Net income available to common shareholders was $4,165,000 against $3,898,000 a year ago. Return on average assets was 0.83% against 0.99% a year ago. Return on average equity was 8.90% against 10.77% a year ago. Return on average tangible common equity was 10.46% against 10.92% a year ago. Net interest income (non-GAAP) was $16,939,000 against $12,482,000 a year ago. Net income excluding one-time merger expenses (non-GAAP) was $5,261,000. Adjusted diluted earnings per share (non-GAAP) were $0.60. Adjusted return on average assets (non-GAAP) was 1.05%. Adjusted return on average tangible common equity (non-GAAP) was 13.22%. Net interest income before the provision for loan losses increased $4.5 million for the quarter ended June 30, 2018 compared to the same period in 2017. The increase in net interest income was a result of an increase of $395.6 million in average interest earning assets, due to the acquisition in the first quarter of 2018 and organic loan growth. An additional benefit was the increase of twenty-seven basis points in net interest margin to 3.56%. The increase in net interest margin is a result of the yield on interest earning assets increasing forty-four basis points partially offset by an increase on the cost of interest bearing liabilities of twenty-two basis points.

For the six months, the company reported net interest income of $30,192,000 against $23,800,000 a year ago. Net interest income after provision for loan losses was $29,242,000 against $23,300,000 a year ago. Income before income taxes was $9,341,000 against $9,471,000 a year ago. Net income available to common shareholders was $8,172,000 against $7,104,000 a year ago. Return on average assets was 0.88% against 0.91% a year ago. Return on average equity was 9.32% against 9.94% a year ago. Return on average tangible common equity was 10.49% against 10.09% a year ago. Book value per common share (GAAP) was $22.44 against $19.92 a year ago. Tangible book value per common share was $19.34 against $19.65 a year ago. Net interest income (non-GAAP) was $30,801,000 against $24,584,000 a year ago. Net income excluding one-time merger expenses (non-GAAP) was $9,792,000. Adjusted diluted earnings per share (non-GAAP) were $1.17. Adjusted return on average assets (non-GAAP) was 1.05%. Adjusted return on average tangible common equity (non-GAAP) was 12.57%. Net interest income before the provision for loan losses increased $6.4 million for the first half of 2018 compared to the same period in 2017. The increase was a result of an increase of $279.2 million in average interest earning assets due the acquisition in the first quarter of 2018 and organic loan growth. This increase was aided by the net interest margin increasing to 3.46% in the first half of 2018 compared to 3.25% in the first half of 2017, while the tax equivalent net interest margin increased to 3.53% in the first half of 2018 compared to 3.36% in the comparable period in 2017. The increase in net interest margin is a result of the yield on interest earning assets increasing thirty-six basis points partially offset by an increase on the cost of interest bearing liabilities of twenty basis points.

For the quarter, the company reported net charge-offs of $308,000 against $256,000 a year ago.