-----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, MvVVuWdCjVmy7etCG2PfU/8E2h1NxahjJAofkie6Dq0wgfsYK1/BFYmv7fczDK0F X3vo6uHT4NvbFsRqopDriA== 0000950124-06-000106.txt : 20060111 0000950124-06-000106.hdr.sgml : 20060111 20060111083537 ACCESSION NUMBER: 0000950124-06-000106 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060111 ITEM INFORMATION: Completion of Acquisition or Disposition of Assets ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060111 DATE AS OF CHANGE: 20060111 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: 06523625 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 k01518e8vk.txt CURRENT REPORT DATED JANUARY 11, 2006 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): JANUARY 11, 2006 ---------- MERCANTILE BANK CORPORATION (Exact name of registrant as specified in its charter) MICHIGAN 000-26719 38-3360865 (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification Number)
310 LEONARD STREET NW, GRAND RAPIDS, MICHIGAN 49504 (Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 616-406-3000 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 January 11, 2006, Mercantile Bank Corporation issued a press release announcing earnings and other financial results for the quarter and year ended December 31, 2005. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated here by reference. In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS. (d) Exhibits.
Exhibit Number Description - -------------- ----------- 99.1 Press release of Mercantile Bank Corporation reporting financial results and earnings for the quarter and year ended December 31, 2005.
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: January 11, 2006 3 EXHIBIT INDEX
Exhibit Number Description - -------------- ----------- 99.1 Press release of Mercantile Bank Corporation reporting financial results and earnings for the quarter and year ended December 31, 2005.
4 EX-99.1 2 k01518exv99w1.txt PRESS RELEASE REPORTING FINANCIAL RESULTS AND EARNINGS FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2005 (MERCANTILE(R) BANK CORPORATION LOGO) FOR FURTHER INFORMATION: AT MERCANTILE BANK CORPORATION: Gerald R. Johnson, Jr. Charles Christmas Chairman & CEO Chief Financial Officer 616-726-1200 616-726-1202 gjohnson@mercbank.com cchristmas@mercbank.com MERCANTILE BANK CORPORATION ANNOUNCES 2005 FISCAL YEAR NET INCOME OF $17.9 MILLION, UP 30.5% Grand Rapids, MI -- January 11, 2006 -- Mercantile Bank Corporation (Nasdaq: MBWM) reported net income for the fiscal year ended December 31, 2005 of $17.9 million, an increase of 30.5 percent from the $13.7 million reported for the fiscal year ended December 31, 2004. Diluted earnings per share were $2.31 compared with $1.78 reported for 2004, an increase of 29.8 percent. Earnings for the 2004 fiscal year include an $845,000 ($548,000 after-tax) write-off associated with the unamortized balance of issuance costs related to the redemption of a $16.0 million trust preferred offering issued in 1999. Excluding this one-time expense, net income and diluted earnings per share for 2005 increased 25.5 percent and 24.9 percent, respectively, over 2004. For the fourth quarter of 2005, Mercantile reported net income of $4.55 million, an increase of 1.4 percent above the $4.48 million reported in the prior-year period. Diluted earnings per share were $0.59, an increase of 1.7 percent above the $0.58 reported in the fourth quarter of 2004. Moderation in earnings growth primarily reflects the Company's recent expansion initiatives in Michigan. "During the last six months of 2005," Gerald R. Johnson, Jr., Chairman and CEO, commented, "we made several significant investments to support growth in our West Michigan markets, and also to extend our presence further eastward into Lansing and Ann Arbor. We are pleased by the loan and deposit growth we are already experiencing in our new markets; we generated loans in excess of $30 million and nearly $10 million in core deposits since the Lansing and Ann Arbor banking centers opened in July and September, respectively. As we entered these new markets, we incurred increased occupancy and other costs related to the opening of the two new banking centers, as well as significant salary and benefit expenses in our successful efforts to hire individuals whom we felt were the very best bankers available. We now expect to leverage these investments as we continue to generate potentially significant earnings in Lansing and Ann Arbor that will complement our continuing growth in West Michigan." Mr. Johnson continued, "Strong organic loan growth in all of our markets, supported by solid asset quality, has enabled us to achieve another record year of earnings. We continue to produce exceptionally strong revenue growth based on the consistent execution of our strategic vision: To be the premier provider of financial services to small and mid-size businesses in the communities we serve." Total revenue, comprised of net interest income and non-interest income, was $61.0 million for fiscal year 2005, an increase of 30.4 percent over the $46.7 million reported for fiscal year 2004. Net interest income increased 30.3 percent over the 2004 period to $55.3 million, reflecting a combination of 22.7 percent growth in average earning assets and a 20 basis point improvement in the net interest margin to 3.50 percent. Mr. Johnson noted that despite deposit rate pressures, the Company managed its balance sheet effectively through yet another year; 2005 represents the fifth straight year that Mercantile improved its net interest margin. Non-interest income was $5.7 million, a $1.4 million, or 31.6 percent, increase over 2004. Approximately half of that increase reflects overall business growth while the remaining $0.7 million of the increase represents a gain on the sale of state tax credits derived from the construction of the Company's new headquarters building and sold during the fourth quarter of 2005. Non-interest expense for fiscal year 2005 was $31.1 million, an increase of $7.9 million, or 34.1 percent, over the prior year in support of extensive infrastructure expansion. Excluding the $845,000 pre-tax charge associated with the write-off of unamortized issuance costs incurred in 2004, non-interest expense increased 39.2 percent. Salaries and benefits, up $4.7 million, or 33.5 percent, represented over half of the dollar increase; Mercantile added 79 full-time equivalent employees (an increase of 40.7 percent, to 273) over the past twelve months. Occupancy, equipment and furniture expense rose 60.7 percent, also in support of infrastructure expansion, and in particular, from the investment in three new full-service banking offices in Holland, Lansing and Ann Arbor, as well as the recently-opened headquarters building in Grand Rapids. Other non-interest expense totaled $8.2 million for 2005; excluding the one-time 2004 charge, this represented an increase of 43.0 percent above the year-ago period, again reflecting investments associated with the Company's growth and expansion initiatives. The efficiency ratio was 51.1 percent for 2005; this compares with 49.6 percent for 2004. Mr. Johnson continued, "We are pleased with our ability to maintain outstanding asset quality year after year, while at the same time we continue to grow our loan portfolio. Over the past five years, loans increased at a compound average annual rate of 29.8 percent, reaching $1.56 billion this year-end, while we charged off a net balance of $3.4 million during this entire five-year period." Net charge-offs for fiscal year 2005 were $1.1 million, or 0.08 percent of average loans, compared with $1.2 million, or 0.10 percent, for fiscal year 2004. Non-performing assets were $4.0 million, or 0.22 percent of total assets at December 31, 2005, compared with $2.8 million, or 0.19 percent, at December 31, 2004. Loan and lease loss reserves were $20.5 million, or 1.31 percent of total loans and leases at December 31, 2005. Total assets were $1.84 billion at December 31, 2005, an increase of $302.1 million, or 19.7 percent, from December 31, 2004. Earning asset growth was $273.7 million, or 18.6 percent, during this twelve-month period, with loans increasing $244.7 million. The increase in earning assets was primarily funded by a $260.2 million, or 22.4 percent, increase in deposits. Shareholders' equity at December 31, 2005 was $155.1 million, a twelve-month increase of $13.5 million, or 9.5 percent. Total shares outstanding at quarter-end were 7,590,526. Mercantile's total risk-based capital ratio was 12.00 percent at year-end. Mr. Johnson concluded, "We look forward to a continuation of balance sheet and revenue growth in 2006 as our expansion initiatives take hold. Our banking expertise appears to be valued by the new markets we entered in 2005, as well as in our home base of western Michigan." ABOUT MERCANTILE BANK CORPORATION Mercantile Bank Corporation is the bank holding company for Mercantile Bank of 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 banking offices in greater Grand Rapids, and its full-service banking offices in Holland, Lansing, and Ann Arbor, Michigan. Mercantile Bank Corporation's common stock is listed on the NASDAQ National Market under the symbol "MBWM." 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 Fourth Quarter 2005 Results MERCANTILE BANK CORPORATION CONSOLIDATED BALANCE SHEETS
DECEMBER 31, DECEMBER 31, DECEMBER 31, 2005 2004 2003 -------------- -------------- -------------- (Unaudited) (Audited) (Audited) ASSETS Cash and due from banks $ 36,208,000 $ 20,662,000 $ 16,309,000 Short-term investments 545,000 149,000 255,000 Federal funds sold 0 0 0 -------------- -------------- -------------- Total cash and cash equivalents 36,753,000 20,811,000 16,564,000 Securities available for sale 112,961,000 93,826,000 71,421,000 Securities held to maturity 60,766,000 52,341,000 45,112,000 Federal Home Loan Bank stock 7,887,000 6,798,000 4,977,000 Total loans and leases 1,561,812,000 1,317,124,000 1,035,963,000 Allowance for loan and lease losses (20,527,000) (17,819,000) (14,379,000) -------------- -------------- -------------- Total Loans and leases, net 1,541,285,000 1,299,305,000 1,021,584,000 Premises and equipment, net 30,206,000 24,572,000 15,305,000 Bank owned life insurance policies 28,071,000 23,750,000 16,441,000 Accrued interest receivable 8,274,000 5,644,000 4,098,000 Other assets 12,007,000 9,072,000 7,835,000 -------------- -------------- -------------- Total assets $1,838,210,000 $1,536,119,000 $1,203,337,000 ============== ============== ============== LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest-bearing $ 120,828,000 $ 101,742,000 $ 76,579,000 Interest-bearing 1,298,524,000 1,057,439,000 826,313,000 -------------- -------------- -------------- Total deposits 1,419,352,000 1,159,181,000 902,892,000 Securities sold under agreement to repurchase 72,201,000 56,317,000 49,545,000 Federal funds purchased 9,600,000 15,000,000 6,000,000 Federal Home Loan Bank advances 130,000,000 120,000,000 90,000,000 Subordinated debentures 32,990,000 32,990,000 16,495,000 Other borrowed money 2,347,000 1,609,000 1,114,000 Accrued expenses and other liabilities 16,595,000 9,405,000 7,090,000 -------------- -------------- -------------- Total liabilities 1,683,085,000 1,394,502,000 1,073,136,000 SHAREHOLDERS' EQUITY Common stock 148,533,000 131,010,000 118,560,000 Retained earnings 8,000,000 10,475,000 11,421,000 Accumulated other comprehensive income (1,408,000) 132,000 220,000 -------------- -------------- -------------- Total shareholders' equity 155,125,000 141,617,000 130,201,000 Total liabilities and shareholders' equity $1,838,210,000 $1,536,119,000 $1,203,337,000 ============== ============== ==============
Mercantile Bank Corporation Fourth Quarter 2005 Results MERCANTILE BANK CORPORATION CONSOLIDATED REPORTS OF INCOME
THREE MONTHS ENDED THREE MONTHS ENDED TWELVE MONTHS ENDED TWELVE MONTHS ENDED December 31, 2005 December 31, 2004 December 31, 2005 December 31, 2004 ------------------ ------------------ ------------------- ------------------- (Unaudited) (Unaudited) (Unaudited) (Audited) INTEREST INCOME Loans and leases, including fees $27,074,000 $17,968,000 $ 93,666,000 $62,791,000 Investment securities 2,148,000 1,728,000 8,184,000 6,152,000 Federal funds sold 90,000 22,000 266,000 75,000 Short-term investments 3,000 1,000 14,000 4,000 ----------- ----------- ------------ ----------- Total interest income 29,315,000 19,719,000 102,130,000 69,022,000 INTEREST EXPENSE Deposits 11,998,000 6,401,000 38,884,000 21,786,000 Short-term borrowings 607,000 301,000 1,795,000 877,000 Federal Home Loan Bank advances 1,189,000 693,000 4,200,000 2,471,000 Long-term borrowings 564,000 242,000 1,959,000 1,461,000 ----------- ----------- ------------ ----------- Total interest expense 14,358,000 7,637,000 46,838,000 26,595,000 ----------- ----------- ------------ ----------- Net interest income 14,957,000 12,082,000 55,292,000 42,427,000 Provision for loan and lease losses 1,270,000 1,000,000 3,790,000 4,674,000 ----------- ----------- ------------ ----------- Net interest income after provision for loan and lease losses 13,687,000 11,082,000 51,502,000 37,753,000 NON INTEREST INCOME Service charges on accounts 343,000 325,000 1,391,000 1,255,000 Net gain on sales of securities 0 0 0 78,000 Net gain on sales of loans 0 50,000 84,000 225,000 Other income 1,560,000 731,000 4,186,000 2,744,000 ----------- ----------- ------------ ----------- Total non interest income 1,903,000 1,106,000 5,661,000 4,302,000 NON INTEREST EXPENSE Salaries and benefits 5,088,000 3,574,000 18,635,000 13,956,000 Occupancy 752,000 418,000 2,641,000 1,588,000 Furniture and equipment 558,000 276,000 1,667,000 1,093,000 Other expense 2,404,000 1,960,000 8,174,000 6,561,000 ----------- ----------- ------------ ----------- Total non interest expense 8,802,000 6,228,000 31,117,000 23,198,000 ----------- ----------- ------------ ----------- Income before federal income tax expense 6,788,000 5,960,000 26,046,000 18,857,000 Federal income tax expense 2,239,000 1,472,000 8,145,000 5,136,000 ----------- ----------- ------------ ----------- Net income $ 4,549,000 $ 4,488,000 $ 17,901,000 $13,721,000 =========== =========== ============ =========== Basic earnings per share $ 0.60 $ 0.59 $ 2.36 $ 1.82 Diluted earnings per share $ 0.59 $ 0.58 $ 2.31 $ 1.78 Average shares outstanding * 7,589,174 7,549,053 7,580,322 7,533,036 Average diluted shares outstanding * 7,718,076 7,717,686 7,749,680 7,721,713
* - Adjusted for 5% stock dividend paid on August 1, 2005 Mercantile Bank Corporation Fourth Quarter 2005 Results MERCANTILE BANK CORPORATION CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
QUARTERLY ------------------------------------------------------ YEAR-TO-DATE 2005 2005 2005 2005 2004 -------------------- (dollars in thousands except per share data) 4TH QTR 3RD QTR 2ND QTR 1ST QTR 4TH QTR 2005 2004 ---------- --------- --------- --------- --------- --------- --------- EARNINGS Net interest income $ 14,957 14,072 13,608 12,655 12,082 55,292 42,427 Provision for loan and lease losses $ 1,270 895 900 725 1,000 3,790 4,674 NonInterest income $ 1,903 1,330 1,218 1,210 1,106 5,661 4,302 NonInterest expense $ 8,802 8,320 7,145 6,850 6,228 31,117 23,198 Net income $ 4,549 4,300 4,690 4,362 4,488 17,901 13,721 Basic earnings per share $ 0.60 0.57 0.62 0.58 0.59 2.36 1.82 Diluted earnings per share $ 0.59 0.56 0.61 0.57 0.58 2.31 1.78 Average shares outstanding * 7,589,174 7,585,879 7,579,437 7,566,638 7,549,053 7,580,322 7,533,036 Average diluted shares outstanding * 7,718,076 7,732,872 7,720,821 7,712,820 7,717,686 7,749,680 7,721,713 PERFORMANCE RATIOS Return on average assets 1.00% 0.98% 1.13% 1.11% 1.18% 1.05% 0.99% Return on average common equity 11.76% 11.33% 12.80% 12.36% 12.74% 12.05% 10.16% Net interest margin (fully tax-equivalent) 3.54% 3.46% 3.52% 3.46% 3.43% 3.50% 3.30% Efficiency ratio 52.21% 54.02% 48.19% 49.41% 47.22% 51.05% 49.64% Full-time equivalent employees 273 263 237 212 194 273 194 CAPITAL Average equity to average assets 8.51% 8.65% 8.81% 8.99% 9.29% 8.73% 9.79% Tier 1 leverage capital ratio 10.45% 10.62% 10.86% 11.13% 11.53% 10.45% 11.53% Tier 1 risk-based capital ratio 10.82% 11.07% 11.40% 11.53% 11.82% 10.82% 11.82% Total risk-based capital ratio 12.00% 12.24% 12.58% 12.71% 13.03% 12.00% 13.03% Book value per share $ 20.44 20.08 19.63 19.04 18.71 20.44 18.71 Cash dividend per share $ 0.11 0.11 0.11 0.10 0.09 0.43 0.36 ASSET QUALITY Gross loan charge-offs $ 350 338 211 493 262 1,392 1,405 Net loan charge-offs $ 315 181 140 447 226 1,083 1,234 Net loan charge-offs to average loans 0.08% 0.05% 0.04% 0.13% 0.07% 0.08% 0.10% Allowance for loan and lease losses $ 20,527 19,571 18,856 18,097 17,819 20,527 17,819 Allowance for losses to total loans 1.31% 1.31% 1.32% 1.32% 1.35% 1.31% 1.35% Nonperforming loans $ 3,995 1,926 2,535 4,016 2,842 3,995 2,842 Other real estate and repossessed assets $ 0 195 1,177 1,177 0 0 0 Nonperforming assets to total assets 0.22% 0.12% 0.22% 0.31% 0.19% 0.22% 0.19% END OF PERIOD BALANCES Loans and leases $1,561,812 1,488,959 1,424,463 1,374,577 1,317,124 1,561,812 1,317,124 Total earning assets (before allowance) $1,743,971 1,701,275 1,620,632 1,575,697 1,470,238 1,743,971 1,470,238 Total assets $1,838,210 1,796,770 1,709,153 1,664,876 1,536,119 1,838,210 1,536,119 Deposits $1,419,352 1,397,280 1,321,844 1,290,017 1,159,181 1,419,352 1,159,181 Shareholders' equity $ 155,125 152,320 149,200 144,501 141,617 155,125 141,617 AVERAGE BALANCES Loans and leases $1,519,616 1,460,792 1,402,469 1,345,336 1,276,913 1,432,609 1,177,568 Total earning assets (before allowance) $1,709,612 1,647,294 1,582,453 1,511,891 1,428,121 1,613,448 1,314,532 Total assets $1,804,067 1,740,203 1,669,202 1,591,764 1,504,526 1,701,997 1,379,178 Deposits $1,394,023 1,339,486 1,281,652 1,214,890 1,150,606 1,308,091 1,049,397 Shareholders' equity $ 153,522 150,540 146,997 143,169 139,744 148,589 135,002
* - Adjusted for 5% stock dividend paid on August 1, 2005 Mercantile Bank Corporation Fourth Quarter 2005 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 2005 results to 2004 results.
TWELVE MONTHS ENDED TWELVE MONTHS ENDED December 31, 2005 December 31, 2004 ------------------- ------------------- (Unaudited) (Audited) GAAP-BASED OPERATING PERFORMANCE MEASURES Net interest income $55,292,000 $42,427,000 Provision for loan and lease losses 3,790,000 4,674,000 Noninterest income 5,661,000 4,302,000 Noninterest expense 31,117,000 23,198,000 ----------- ----------- Income before federal income tax expense 26,046,000 18,857,000 Federal income tax expense 8,145,000 5,136,000 ----------- ----------- Net income 17,901,000 13,721,000 Basic earnings per share $ 2.36 $ 1.82 Diluted earnings per share 2.31 1.78 Return on average assets 1.05% 0.99% Return on average equity 12.05% 10.16% Net interest margin 3.50% 3.30% Efficiency ratio 51.05% 49.64% ADJUSTED OPERATING PERFORMANCE MEASURES Net interest income $55,292,000 $42,427,000 Provision for loan and lease losses 3,790,000 4,674,000 Noninterest income 5,661,000 4,302,000 Noninterest expense 31,117,000 23,198,000 Elimination of one-time charge associated with redemption of trust preferred securities 0 845,000 ----------- ----------- Income before federal income tax expense 26,046,000 19,702,000 Federal income tax expense 8,145,000 5,136,000 Increase in federal income tax expense due to elimination of one-time charge 0 297,000 ----------- ----------- Net income 17,901,000 14,269,000 Basic earnings per share $ 2.36 $ 1.89 Diluted earnings per share 2.31 1.85 Return on average assets 1.05% 1.03% Return on average equity 12.05% 10.57% Net interest margin 3.50% 3.30% Efficiency ratio 51.05% 47.84%
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