-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SOn//2F+6OFBK9IuyfyHlgj4xCtizkMygUkgroVmmDSHx1pN2w2bi21JdU60Iz2J c3P6i9EMu3n+U4NINgVyYA== 0000950124-04-004718.txt : 20041007 0000950124-04-004718.hdr.sgml : 20041007 20041007095847 ACCESSION NUMBER: 0000950124-04-004718 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041007 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041007 DATE AS OF CHANGE: 20041007 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MERCANTILE BANK CORP CENTRAL INDEX KEY: 0001042729 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 383360865 STATE OF INCORPORATION: MI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-26719 FILM NUMBER: 041069455 BUSINESS ADDRESS: STREET 1: 5650 BYRON CENTER AVENUE S. W. CITY: WYOMING STATE: MI ZIP: 49509 BUSINESS PHONE: 616 406-3777 MAIL ADDRESS: STREET 1: 5650 BYRON CENTER AVENUE S. W. CITY: WYOMING STATE: MI ZIP: 49509 8-K 1 k88599e8vk.txt CURRENT REPORT, DATED OCTOBER 7, 2004 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ---------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): OCTOBER 7, 2004 -------------------- MERCANTILE BANK CORPORATION (Exact name of registrant as specified in its charter) MICHIGAN 000-26719 38-3360865 (State or other jurisdiction (Commission File (IRS Employer of incorporation) Number) Identification Number) 5650 BYRON CENTER AVENUE SW, WYOMING, MICHIGAN 49509 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code 616-406-3777 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. Earnings Release. On October 7, 2004, Mercantile Bank Corporation issued a press release reporting earnings and other financial results for the quarter ended September 30, 2004. A copy of the press release is attached as Exhibit 99.1 and incorporated here by reference. The information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits. Exhibit Number Description - -------------- ----------- 99.1 Press release of Mercantile Bank Corporation reporting financial results and earnings for the quarter ended September 30, 2004. 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. MERCANTILE BANK CORPORATION By: /s/ Charles E. Christmas ----------------------------------------- Charles E. Christmas Senior Vice President, Chief Financial Officer and Treasurer Date: October 7, 2004 3 EXHIBIT INDEX Exhibit Number Description - -------------- ----------- 99.1 Press release of Mercantile Bank Corporation reporting financial results and earnings for the quarter ended September 30, 2004. 4 EX-99.1 2 k88599exv99w1.txt PRESS RELEASE EXHIBIT 99.1 [MERCANTILE BANK CORPORATION LOGO] FOR FURTHER INFORMATION: AT MERCANTILE BANK CORPORATION: FOR MEDIA: Gerald R. Johnson, Jr. Charles Christmas Linda Margolin Chairman & CEO Chief Financial Officer Margolin & Associates, Inc. 616-406-3700 616-406-3750 216-765-0953 gjohnson@mercbank.com cchristmas@mercbank.com lmm@margolinIR.com MERCANTILE BANK CORPORATION ANNOUNCES THIRD QUARTER NET INCOME OF $3.1 MILLION, UP 39.8% WYOMING, Mich., October 7, 2004 -- Mercantile Bank Corporation (Nasdaq: MBWM) reported net income for the third quarter of 2004 of $3.1 million, up 39.8 percent from the $2.2 million reported in the third quarter of 2003. Earnings for the third quarter of 2004 include an $845,000 ($549,000 after-tax) write-off associated with the unamortized balance of issuance costs related to the redemption of the $16.0 million trust preferred offering issued in 1999. Excluding this one-time expense, earnings were $3.7 million, a 64.4 percent increase over the prior-year quarter. Reported diluted earnings per share were $0.43 compared with $0.37 for the prior-year third quarter, an increase of 16.2 percent. Excluding the one-time charge, diluted earnings per share for the third quarter of 2004 were $0.50. Per share results reflect a common stock offering completed in the fourth quarter of 2003, which increased average shares outstanding by 1.4 million, or 23.1 percent. For the first nine months of 2004, Mercantile reported net income of $9.2 million, up 31.9 percent from the $7.0 million reported in the first nine months of 2003. Excluding the $845,000 write-off, earnings were $9.8 million, a 39.7 percent increase over the prior-year period. Reported diluted earnings per share were $1.26 compared with the $1.19 reported for the prior-year period. Excluding the one-time charge, diluted earnings per share were $1.34. Per share results reflect the aforementioned common stock offering, which increased average shares outstanding by 1.5 million, or 24.8 percent. Gerald R. Johnson, Jr., Chairman and CEO, commented, "Exceptional loan growth is a recurring theme for us, and we are pleased to continue this performance for still another quarter, with assets fast approaching the $1.5 billion mark. Our strong loan growth has been supported by a tradition of excellent asset quality and disciplined expense management, which has enabled us to achieve another outstanding earnings quarter." On September 16, 2004, Mercantile completed a private placement of $16.0 million of floating rate trust preferred securities. The rate is based on 3-month LIBOR, plus a specified percentage; the current rate is 4.06 percent, adjusted quarterly. Proceeds were used to redeem $16.0 million of 9.60% Cumulative Preferred Securities issued in 1999. For details regarding this transaction, please refer to the Form 8-K filed with the SEC on September 22, 2004. Mercantile recognized an $845,000 pre-tax charge in connection with the redemption, representing the unamortized issuance costs of the securities. Total revenue, comprised of net interest income and non-interest income, was $12.0 million in the third quarter of 2004, an increase of 31.8 percent over the $9.1 million earned during the prior-year third quarter. Mr. Johnson noted, "We are effectively managing our net interest margin to maintain its stability, allowing strong loan growth to drive growth in net interest income." Net interest income increased 34.9 percent to $10.9 million for the 2004 third quarter, reflecting a combination of 32.3 percent growth in average earning assets and a four basis point improvement in the net interest margin to 3.23 percent. Non-interest income for the third quarter was $1.2 million, an increase of 7.9 percent above last year's third quarter; this quarter's non-interest income was enhanced by gains of $135,000 resulting from the sale of SBA-guaranteed loans. Non-interest expense for the third quarter of 2004 was $6.4 million, an increase of 34.7 percent over the prior-year period. Excluding the write-off of trust preferred issuance costs, non-interest expense increased 16.9 percent, primarily reflecting an 18.5 percent increase in salaries and benefits from the addition of 34 FTEs (a 21.8 percent increase in staff). Mr. Johnson noted that revenue growth continues to far outpace growth in non-interest expense, indicative of the Company's ongoing attention to expense control. Mercantile's efficiency ratio was 53.40 percent for the third quarter of 2004 compared to 52.26 percent for last year's third quarter. Excluding the one-time write-off, the efficiency ratio was 46.40 percent. Commenting on Mercantile's asset quality, Mr. Johnson said, "Our asset quality remains strong, reflecting the strength of our underwriting and credit administrative culture." Non-performing assets were $3.0 million at September 30, 2004, or 0.20 percent of total assets, compared with $3.7 million at June 30, 2004, or 0.27 percent of total assets. Annualized net charge-offs for the quarter were 0.15 percent of average loans, compared with 0.02 percent for the prior-year period. The loan and lease loss reserve was $17.0 million, or 1.36 percent of total loans and leases at September 30, 2004. Total assets were $1.47 billion at September 30, 2004, an increase of $320.6 million, or 27.8 percent, from the prior-year third quarter. Loans rose $280.0 million, or 28.8 percent, during the same time period, primarily funded by a $255.3 million increase in deposits. Non-interest bearing deposits rose 43.4 percent, to $111.0 million. Shareholders' equity at September 30, 2004 was $137.9 million, a twelve-month increase of $15.8 million, or 12.9 percent. Total shares outstanding at quarter-end were 7,176,822. Mercantile's total risk-based capital ratio at September 30, 2004 was 12.21 percent. Mr. Johnson concluded, "With strong loan growth and a more favorable rate environment, we are well positioned to continue the earnings momentum generated through our successful business model." About Mercantile Bank Corporation Mercantile Bank Corporation is the bank holding company for Mercantile Bank of West Michigan. The Bank's primary service area is the Kent and Ottawa County area of West Michigan, which includes the City of Grand Rapids, the second-largest city in the State of Michigan. The Bank provides a wide variety of commercial banking services primarily to businesses, individuals, and governmental units through its five full-service offices in greater Grand Rapids, and its Holland, Michigan office located thirty miles southwest of Grand Rapids. Mercantile Bank Corporation's common stock is listed on the Nasdaq National Market under the symbol "MBWM." Non-GAAP Financial Measures This press release includes disclosure and discussion of earnings, EPS and efficiency ratio excluding a one-time write-off. These numbers are non-GAAP financial measures as defined in Securities and Exchange Commission ("SEC") Regulation G and Item 10 of SEC Regulation S-K. Management believes that these measures are better indicators of operating performance than the GAAP-based ratios. A complete reconciliation of the GAAP-based and non-GAAP information included in this press release has been provided. Non-GAAP information presented by other companies may not be comparable to that presented herein, since each company may define non-GAAP measures differently. Forward-Looking Statements This news release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Actual results may differ materially from the results expressed in forward-looking statements. Factors that might cause such a difference include changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulation; changes in tax laws; changes in prices, levies, and assessments; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in the national and local economy; and other factors, including risk factors, referred to from time to time in filings made by Mercantile with the Securities and Exchange Commission. Mercantile undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise. Mercantile Bank Corporation Third Quarter 2004 Results MERCANTILE BANK CORPORATION CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30, 2004 2003 2003 ---- ---- ---- (Unaudited) (Audited) (Unaudited) ASSETS Cash and due from banks $ 35,304,000 $ 16,309,000 $ 32,600,000 Short-term investments 327,000 255,000 230,000 Federal funds sold 5,500,000 0 11,800,000 ----------------- ----------------- ----------------- Total cash and cash equivalents 41,131,000 16,564,000 44,630,000 Securities available for sale 87,625,000 71,421,000 61,579,000 Securities held to maturity 50,668,000 45,112,000 42,444,000 Federal Home Loan Bank stock 6,726,000 4,977,000 3,927,000 Total loans and leases 1,252,161,000 1,035,963,000 972,191,000 Allowance for loan and lease losses (17,045,000) (14,379,000) (13,482,000) ----------------- ----------------- ----------------- Total Loans and leases, net 1,235,116,000 1,021,584,000 958,709,000 Premises and equipment, net 21,319,000 15,305,000 15,229,000 Bank owned life insurance policies 16,966,000 16,441,000 16,013,000 Accrued interest receivable 5,638,000 4,098,000 4,142,000 Other assets 9,760,000 7,835,000 7,715,000 ----------------- ----------------- ----------------- Total assets $ 1,474,949,000 $ 1,203,337,000 $ 1,154,388,000 ================= ================= ================= LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest-bearing $ 111,042,000 $ 76,579,000 $ 77,448,000 Interest-bearing 1,033,815,000 826,313,000 812,133,000 ----------------- ----------------- ----------------- Total deposits 1,144,857,000 902,892,000 889,581,000 Securities sold under agreement to repurchase 46,691,000 49,545,000 48,310,000 Federal funds purchased 0 6,000,000 0 Federal Home Loan Bank advances 120,000,000 90,000,000 70,000,000 Subordinated debentures 16,495,000 16,495,000 16,495,000 Other borrowed money 1,508,000 1,114,000 1,012,000 Accrued expenses and other liabilities 7,463,000 7,090,000 6,833,000 ----------------- ----------------- ----------------- Total liabilities 1,337,014,000 1,073,136,000 1,032,231,000 SHAREHOLDERS' EQUITY Common stock 130,935,000 118,560,000 113,118,000 Retained earnings 6,635,000 11,421,000 8,951,000 Accumulated other comprehensive income 365,000 220,000 88,000 ----------------- ----------------- ----------------- Total shareholders' equity 137,935,000 130,201,000 122,157,000 Total liabilities and shareholders' equity $ 1,474,949,000 $ 1,203,337,000 $ 1,154,388,000 ================= ================= =================
\ Mercantile Bank Corporation Third Quarter 2004 Results MERCANTILE BANK CORPORATION CONSOLIDATED REPORTS OF INCOME
THREE MONTHS ENDED THREE MONTHS ENDED NINE MONTHS ENDED NINE MONTHS ENDED September 30, 2004 September 30, 2003 September 30, 2004 September 30, 2003 ------------------ ------------------ ------------------ ------------------ (Unaudited) (Unaudited) (Unaudited) (Unaudited) INTEREST INCOME Loans and leases, including fees $ 16,193,000 $ 12,679,000 $ 44,823,000 $ 36,345,000 Investment securities 1,598,000 1,164,000 4,424,000 3,566,000 Federal funds sold 26,000 11,000 53,000 50,000 Short-term investments 2,000 0 3,000 1,000 --------------- -------------- --------------- --------------- Total interest income 17,819,000 13,854,000 49,303,000 39,962,000 INTEREST EXPENSE Deposits 5,706,000 4,952,000 15,385,000 15,353,000 Short-term borrowings 220,000 168,000 576,000 512,000 Federal Home Loan Bank advances 652,000 274,000 1,778,000 531,000 Long-term borrowings 385,000 415,000 1,219,000 1,240,000 --------------- -------------- --------------- --------------- Total interest expense 6,963,000 5,809,000 18,958,000 17,636,000 --------------- -------------- --------------- --------------- Net interest income 10,856,000 8,045,000 30,345,000 22,326,000 Provision for loan and lease losses 1,200,000 1,380,000 3,674,000 2,850,000 --------------- -------------- --------------- --------------- Net interest income after provision for loan and lease losses 9,656,000 6,665,000 26,671,000 19,476,000 NON INTEREST INCOME Service charges on accounts 319,000 303,000 930,000 852,000 Net gain on sales of securities 0 59,000 78,000 271,000 Net gain on sales of loans 135,000 0 175,000 0 Other income 702,000 709,000 2,013,000 2,184,000 --------------- -------------- --------------- --------------- Total non interest income 1,156,000 1,071,000 3,196,000 3,307,000 NON INTEREST EXPENSE Salaries and benefits 3,589,000 3,029,000 10,382,000 8,285,000 Occupancy 401,000 353,000 1,170,000 1,032,000 Furniture and equipment 277,000 272,000 817,000 738,000 Other expense 2,148,000 1,110,000 4,601,000 3,099,000 --------------- -------------- --------------- --------------- Total non interest expense 6,415,000 4,764,000 16,970,000 13,154,000 --------------- -------------- --------------- --------------- Income before federal income tax expense 4,397,000 2,972,000 12,897,000 9,629,000 Federal income tax expense 1,283,000 744,000 3,664,000 2,628,000 --------------- -------------- --------------- --------------- Net income $ 3,114,000 $ 2,228,000 $ 9,233,000 $ 7,001,000 =============== ============== =============== =============== Basic earnings per share $0.43 $0.38 $1.29 $1.22 Diluted earnings per share $0.43 $0.37 $1.26 $1.19 Average shares outstanding * 7,176,032 5,792,537 7,169,198 5,723,020 Average diluted shares outstanding * 7,318,345 5,945,459 7,316,510 5,862,644 * - Adjusted for 5% stock dividend paid on May 3, 2004
Mercantile Bank Corporation Third Quarter 2004 Results MERCANTILE BANK CORPORATION CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
QUARTERLY YEAR-TO-DATE --------------------------------------------------------------- ----------------------- 2004 2004 2004 2003 2003 (dollars in thousands except per share data) 3RD QTR 2ND QTR 1ST QTR 4TH QTR 3RD QTR 2004 2003 ---------- ---------- ---------- ---------- ---------- ---------- ---------- EARNINGS Net interest income $ 10,856 10,000 9,489 8,939 8,045 30,345 22,326 Provision for loan and lease losses $ 1,200 1,230 1,244 950 1,380 3,674 2,850 NonInterest income $ 1,156 1,001 1,039 1,100 1,071 3,196 3,307 NonInterest expense $ 6,415 5,400 5,155 4,917 4,764 16,970 13,154 Net income $ 3,114 3,146 2,973 3,015 2,228 9,233 7,001 Basic earnings per share $ 0.43 0.44 0.42 0.42 0.38 1.29 1.22 Diluted earnings per share $ 0.43 0.43 0.41 0.42 0.37 1.26 1.19 Average shares outstanding * 7,176,032 7,172,633 7,158,970 7,102,196 5,792,537 7,169,198 5,723,020 Average diluted shares outstanding * 7,318,345 7,322,474 7,314,126 7,260,163 5,945,459 7,316,510 5,862,644 PERFORMANCE RATIOS Return on average assets 0.86% 0.95% 0.96% 1.02% 0.82% 0.92% 0.93% Return on average common equity 9.06% 9.50% 9.10% 9.38% 10.22% 9.23% 11.25% Net interest margin (fully tax-equivalent) 3.23% 3.24% 3.26% 3.26% 3.19% 3.24% 3.20% Efficiency ratio 53.40% 49.09% 48.96% 48.98% 52.26% 50.60% 51.32% Full-time equivalent employees 190 183 167 161 156 190 156 CAPITAL Average equity to average assets 9.54% 10.01% 10.50% 10.91% 7.99% 9.99% 8.25% Tier 1 leverage capital ratio 10.75% 11.35% 11.87% 12.49% 12.75% 10.75% 12.75% Tier 1 risk-based capital ratio 10.99% 11.50% 11.99% 12.60% 12.69% 10.99% 12.69% Total risk-based capital ratio 12.21% 12.74% 13.23% 13.84% 13.93% 12.21% 13.93% Book value per share $ 19.22 18.71 18.52 18.17 17.52 19.22 17.52 Cash dividend per share $ 0.09 0.09 0.09 0.08 0.08 0.27 0.24 ASSET QUALITY Gross loan charge-offs $ 581 263 299 72 95 1,143 524 Net loan charge-offs $ 467 255 286 53 56 1,008 258 Net loan charge-offs to average loans 0.15% 0.09% 0.11% 0.02% 0.02% 0.12% 0.04% Allowance for loan and lease losses $ 17,045 16,312 15,337 14,379 13,482 17,045 13,482 Allowance for losses to total loans 1.36% 1.38% 1.38% 1.39% 1.39% 1.36% 1.39% Nonperforming loans $ 1,433 3,731 3,122 1,785 287 1,433 287 Other real estate and repossessed assets $ 1,552 0 0 0 0 1,552 0 Nonperforming assets to total assets 0.20% 0.27% 0.24% 0.15% 0.02% 0.20% 0.02% END OF PERIOD BALANCES Loans and leases $1,252,161 1,185,363 1,111,152 1,035,963 972,191 1,252,161 972,191 Total earning assets (before allowance) $1,403,007 1,311,191 1,234,158 1,157,728 1,092,171 1,403,007 1,092,171 Total assets $1,474,949 1,378,626 1,293,935 1,203,337 1,154,388 1,474,949 1,154,388 Deposits $1,144,857 1,046,069 995,334 902,892 889,581 1,144,857 889,581 Shareholders' equity $ 137,935 134,272 133,075 130,201 122,157 137,935 122,157 AVERAGE BALANCES Loans and leases $1,219,325 1,144,758 1,067,710 999,618 918,966 1,144,206 849,733 Total earning assets (before allowance) $1,361,985 1,269,300 1,196,936 1,115,960 1,029,203 1,276,387 959,072 Total assets $1,429,059 1,330,507 1,250,733 1,169,521 1,083,389 1,337,686 1,008,775 Deposits $1,094,166 1,004,651 946,562 886,299 867,291 1,015,415 817,709 Shareholders' equity $ 136,290 133,211 131,361 127,511 86,510 133,629 83,192
* - Adjusted for 5% stock dividend paid on May 3, 2004 Mercantile Bank Corporation Third Quarter 2004 Results MERCANTILE BANK CORPORATION Reconciliation of GAAP-Based Operating Performance Measures and Adjusted Operating Performance Measures The following schedule reflects the adjustment of GAAP-based operating results and certain performance measures for the one-time charge associated with the unamortized balance of issuance costs of trust preferred securities that were redeemed during the third quarter of 2004. Management believes excluding the impact of the one-time charge from 2004 operating results and performance measures allows a more meaningful comparison of 2004 results to 2003 results.
THREE MONTHS ENDED THREE MONTHS ENDED NINE MONTHS ENDED NINE MONTHS ENDED September 30, 2004 September 30, 2003 September 30, 2004 September 30, 2003 ------------------ ------------------ ------------------ ------------------ (Unaudited) (Unaudited) (Unaudited) (Unaudited) GAAP-BASED OPERATING PERFORMANCE MEASURES Net interest income $10,856,000 $ 8,045,000 $30,345,000 $22,326,000 Provision for loan and lease losses 1,200,000 1,380,000 3,674,000 2,850,000 Noninterest income 1,156,000 1,071,000 3,196,000 3,307,000 Noninterest expense 6,415,000 4,764,000 16,970,000 13,154,000 ----------- ----------- ----------- ----------- Income before federal income tax expense 4,397,000 2,972,000 12,897,000 9,629,000 Federal income tax expense 1,283,000 744,000 3,664,000 2,628,000 ----------- ----------- ----------- ----------- Net income 3,114,000 2,228,000 9,233,000 7,001,000 Basic earnings per share $ 0.43 $ 0.38 $ 1.29 $ 1.22 Diluted earnings per share 0.43 0.37 1.26 1.19 Return on average assets 0.86% 0.82% 0.92% 0.93% Return on average equity 9.06% 10.22% 9.23% 11.25% Net interest margin 3.23% 3.19% 3.24% 3.20% Efficiency ratio 53.40% 52.26% 50.60% 51.32% ADJUSTED OPERATING PERFORMANCE MEASURES Net interest income $10,856,000 $ 8,045,000 $30,345,000 $22,326,000 Provision for loan and lease losses 1,200,000 1,380,000 3,674,000 2,850,000 Noninterest income 1,156,000 1,071,000 3,196,000 3,307,000 Noninterest expense 6,415,000 4,764,000 16,970,000 13,154,000 Elimination of one-time charge associated with redemption of trust preferred securities 845,000 0 845,000 0 ----------- ----------- ----------- ----------- Income before federal income tax expense 5,242,000 2,972,000 13,742,000 9,629,000 Federal income tax expense 1,283,000 744,000 3,664,000 2,628,000 Increase in federal income tax expense due to elimination of one-time charge 297,000 0 297,000 0 ----------- ----------- ----------- ----------- Net income 3,662,000 2,228,000 9,781,000 7,001,000 Basic earnings per share $ 0.51 $ 0.38 $ 1.36 $ 1.22 Diluted earnings per share 0.50 0.37 1.34 1.19 Return on average assets 1.02% 0.82% 0.98% 0.93% Return on average equity 10.66% 10.22% 9.78% 11.25% Net interest margin 3.23% 3.19% 3.24% 3.20% Efficiency ratio 46.37% 52.26% 48.08% 51.32%
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