The company generated net income of $1.6 million, or $0.23 for basic and diluted earnings per common shares, for the fourth quarter, up from $687,000, or $0.10 diluted earnings per common share, during the same period in 2011.
Net income for the full year was $5.8 million, or $0.82 for diluted earnings per common share. This compared to net income of $1.4 million, or $0.20 for diluted earnings per common share, for the year ended 2011.
“We believe the markets we serve have stabilized. Although far from robust, we think our opportunities are good to continue improving performance,” said president and CEO David Heeter in a press release.
The company said its mortgages increased $65.6 million during the year, citing “mortgage refinance activities,” which it said “remain brisk.” It also noted that it sold fixed-rate product during the period to mitigate interest rate risk.
Mutual First experienced an $8.6 million increase on mortgages in the fourth quarter. During the year, it sold $45.3 million in fixed-rate mortgages, compared to $80.2 million during 2011. It sold most of its FRMs in 2012 through a large portfolio sale.
The company also sold $98.3 million in securities “to fund loan growth to redeploy funds into higher earning assets” and to pay down maturing Federal Home Loan Bank advances. Mutual First prepaid $27.8 million of FHLB advances in the fourth quarter resulting in a loss of $804,000.