Filed by Mercantile Bank Corporation

Pursuant to Rule 425 under the Securities Act of 1933

and deemed filed pursuant to Rule 14a-12

under the Securities Exchange Act of 1934

Subject Company: Mercantile Bank Corporation

Commission File No.: 000-26719

Date: October 15, 2013

Mercantile Bank Corporation Reports Strong Third Quarter 2013 Results

Diluted earnings per share increased 33 percent

Asset quality continues to improve

GRAND RAPIDS, Mich., October 15, 2013 – Mercantile Bank Corporation (NASDAQ: MBWM) (“Mercantile”) reported net income attributable to common shares of $3.5 million, or $0.40 per diluted share, for the third quarter of 2013, compared with net income attributable to common shares of $2.6 million, or $0.30 per diluted share, for the prior-year period.

The third quarter was highlighted by:

• New loan originations of approximately $74 million

• Increased profitability driven by improved asset quality

• Nonperforming assets declined 66 percent from a year ago; currently represent only 0.9 percent of total assets

• No loans were in the 30- to 89-days delinquent category at quarter end

• Improved net interest margin remains well above historical average

• Announced fourth quarter cash dividend of $0.12 per common share, reflecting a current annual yield of approximately 2.3 percent

• Definitive merger agreement signed with Firstbank Corporation; after-tax merger-related costs were $0.7 million for the quarter

“Mercantile’s very strong performance continued through the third quarter of 2013 as we continued to demonstrate leadership in our markets,” said Michael Price, Chairman and CEO of Mercantile. “Mercantile delivered strong operating results, improved financial strength and continued to build momentum in an improving regional economy. We continue to be encouraged by positive trends in new business development and remain confident that our year-to-date performance is indicative of the opportunities available to us over the remainder of 2013 and into 2014.”

Operating Results

Total revenue, which consists of net interest income and noninterest income, was $13.7 million during the third quarter of 2013, up slightly from the $13.6 million generated during the prior-year third quarter. The increase in total revenue during the 2013 period resulted from higher net interest income, which more than offset lower noninterest income. Net interest income during the third quarter of 2013 was $12.0 million, up $0.4 million or 3.5 percent from the third quarter of 2012, reflecting a 0.4 percent increase in average earning assets and a 9 basis point increase in the net interest margin. The net interest margin during the third quarter of 2013 was 3.76 percent, up from 3.67 percent during the comparable 2012 period.

Noninterest income during the third quarter of 2013 was $1.7 million, down 18.2 percent from $2.1 million during the prior-year third quarter. The decrease in noninterest income during the 2013 period primarily resulted from lower rental income on foreclosed properties and residential mortgage banking fee income.

Mercantile recorded a negative $1.7 million provision for loan losses during the third quarter of 2013 compared to a negative provision of $0.4 million for the third quarter of 2012. The negative provision expense is the result of several factors, including continued progress in loan recoveries and collections, a reduced level of loan-rating downgrades and ongoing loan-rating upgrades as the quality of the loan portfolio continues to improve. Loan recoveries totaled $2.0 million during the third quarter of 2013, while loan charge-offs not specifically reserved for in prior periods amounted to only $0.1 million, resulting in a net positive impact of $1.9 million on provision expense.

Noninterest expense totaled $9.9 million during the third quarter of 2013, down $0.3 million or 2.6 percent from the prior-year third quarter. Costs associated with the administration and resolution of problem assets, including legal expenses, property tax payments, appraisal costs and write-downs on foreclosed properties, totaled $0.4 million during the third quarter of 2013, down $1.2 million or 76.3 percent from the $1.6 million expensed during the third quarter of 2012. Gains on sales of other real estate, which are netted against problem asset costs, totaled $0.3 million during the third quarter of 2013. The reduction in problem asset costs reflects the continuation of Mercantile’s aggressive approach to managing and resolving problem assets. After-tax merger-related costs totaled $0.7 million for the quarter.

Mr. Price continued: “We were particularly pleased with the financial performance of our loan portfolio. We recorded a $1.7 million negative provision during the third quarter in large part due to $2.0 million in recoveries. We continue to prune our loan portfolio while taking advantage of new business opportunities in our region. We have the ability to be flexible and opportunistic as we pursue disciplined growth for long-term performance.”

Balance Sheet

As of September 30, 2013, total assets were $1.42 billion, down $0.9 million or 0.1 percent from December 31, 2012; total loans increased $34.3 million, or 3.3 percent, to $1.08 billion over the same time period. Compared to September 30, 2012, total assets grew $33.6 million, or 2.4 percent, and total loans grew $40.2 million, or 3.9 percent. Approximately $60 million in loans to new borrowers were originated during the third quarter as continuing relationship building efforts have led to increased lending opportunities.

Commercial-related real estate loans continue to comprise a majority of Mercantile’s loan portfolio, representing approximately 67 percent of total loans as of September 30, 2013. Non-owner occupied commercial real estate (“CRE”) loans, totaling $368 million or 34.2 percent of total loans as of September 30, 2013, increased $68.4 million or 22.9 percent during the last twelve months. Owner-occupied CRE loans, totaling $259 million or 24.1 percent of total loans at the end of the current year third quarter, declined $17.4 million or 6.3 percent since September 30, 2012. Commercial and industrial loans totaled $287 million or 26.7 percent of total loans as of September 30, 2013, up from $272 million or 26.3 percent of total loans as of September 30, 2012.

LOAN COMPOSITION

($000s)	9/30/13		6/30/13		3/31/13		12/31/12		9/30/12
Commercial:
Commercial & Industrial	$	286,887	$	279,300	$	272,890	$	285,322	$	271,814
Land Development & Construction		40,741		42,170		45,174		48,099		56,622
Owner Occupied CRE		258,656		253,172		253,089		259,277		276,185
Non-Owner Occupied CRE		368,301		357,452		327,776		324,886		299,356
Multi-Family & Residential
Rental Properties		53,178		53,522		50,035		50,922		53,434
Total Commercial		1,007,763		985,616		948,964		968,506		957,411
Retail:
1-4 Family Mortgages		31,149		35,709		35,735		33,766		38,454
Home Equity & Other Consumer Loans		36,575		37,337		38,257		38,917		39,423
Total Retail		67,724		73,046		73,992		72,683		77,877
Total	$	1,075,487	$	1,058,662	$	1,022,956	$	1,041,189	$	1,035,288

Mercantile has continued its efforts to improve liquidity by growing local deposits and reducing wholesale funding. As of September 30, 2013, total deposits were $1.12 billion, up $13.9 million from September 30, 2012. By comparison, local deposits increased $76.9 million to $904 million over the past year, representing 80.6 percent of total deposits compared to 74.7 percent at September 30, 2012. Growth in local deposits was driven primarily by new commercial relationships, the introduction of innovative new products, various deposit-gathering initiatives and enhanced advertising and branding campaigns.

Wholesale funds were $262 million, or 21.3 percent of total funds, as of September 30, 2013, compared to $305 million, or 24.7 percent of total funds, as of December 31, 2012, and $315 million, or 26.2 percent of total funds, as of September 30, 2012.

Short-term investments, consisting of federal funds sold and interest-bearing bank deposits, averaged $65.9 million during the third quarter of 2013. In addition to its short-term investments, Mercantile had approximately $147 million of borrowing capacity through various established lines of credit to meet potential funding needs, as well as approximately $38 million of unpledged U.S. Government securities as of September 30, 2013.

Asset Quality

Nonperforming assets (“NPAs”) at September 30, 2013 were $12.2 million, or 0.9 percent of total assets, compared to $25.9 million as of December 31, 2012, and $35.9 million as of September 30, 2012 (1.8 percent and 2.6 percent of total assets, respectively). This represents a reduction of $13.7 million or 53.1 percent from the end of 2012, and a decline of $23.7 million or 66.2 percent from the year-ago quarter-end.

Robert B. Kaminski, Jr., Mercantile’s Executive Vice President and Chief Operating Officer, noted: “We remain pleased with our ongoing success in improving asset quality and the dramatic decline in nonperforming assets over the past several years. The actions taken over the past several years reflect our aggressive stance to move troubled assets off our balance sheet. Nonperforming assets now represent only 0.9 percent of our total assets and our 30-to 89-day delinquent loans continue at a nominal level. We are grateful to the entire Mercantile team for all their hard work on this initiative, while staying true to our community banking roots, maintaining a steady focus on meeting the needs of our existing customers and driving the growth of new relationships in our markets. While our markets remain competitive, we believe we are benefiting from our robust sales programs and marketing initiatives and the overall value that Mercantile brings to clients as evidenced by the $74 million in loans to new borrowers we originated in the third quarter.”

Nonperforming loans (“NPLs”) totaled $8.6 million as of September 30, 2013, down $1.9 million and $16.2 million, respectively, from the linked quarter-end and the year-ago quarter-end, while foreclosed real estate and repossessed assets declined $0.4 million and $7.6 million, respectively, from the linked and year-ago quarter-ends. CRE loans represented 46.1 percent of NPLs, or $4.0 million at September 30, 2013. Investor-owned nonperforming CRE loans accounted for $3.3 million of total CRE NPLs, while owner-occupied CRE NPLs accounted for $0.7 million. Owner-occupied and rental residential NPLs totaled $2.9 million or 33.2 percent of total NPLs as of September 30, 2013.

NONPERFORMING ASSETS

($000s)	9/30/13		6/30/13		3/31/13		12/31/12		9/30/12
Residential Real Estate:
Land Development	$	538	$	936	$	1,370	$	2,362	$	3,318
Construction		89		89		448		476		645
Owner Occupied / Rental		3,078		3,516		4,027		4,812		5,426
		3,705		4,541		5,845		7,650		9,389
Commercial Real Estate:
Land Development		633		681		755		789		1,158
Construction		0		0		0		0		0
Owner Occupied		1,219		1,566		2,708		3,534		6,395
Non-Owner Occupied		5,490		6,898		8,722		13,232		17,613
		7,342		9,145		12,185		17,555		25,166
Non-Real Estate:
Commercial Assets		1,111		755		869		734		1,386
Consumer Assets		0		1		1		1		1
		1,111		756		870		735		1,387
Total	$	12,158	$	14,442	$	18,900	$	25,940	$	35,942

During the third quarter of 2013, Mercantile added only $0.9 million of NPAs to its problem asset portfolio, while disposing of $3.2 million through a combination of principal payments and asset sales ($2.9 million), loan charge-offs ($0.1 million), and foreclosed asset valuation write-downs ($0.2 million). In total, NPAs decreased by a net $2.3 million, or 15.8 percent, during the third quarter of 2013.

NONPERFORMING ASSETS RECONCILIATION

($000s)	3Q 2013			2Q 2013			1Q 2013			4Q 2012			3Q 2012
Beginning balance	$	14,442		$	18,900		$	25,940		$	35,942		$	40,069
Additions		852			495			692			3,691			158
Returns to performing status		0			0			0			(37	)		0
Principal payments		(2,362	)		(1,988	)		(3,512	)		(6,960	)		(1,245	)
Sale proceeds		(528	)		(2,374	)		(1,887	)		(4,858	)		(1,190	)
Loan charge-offs		(56	)		(319	)		(2,116	)		(1,202	)		(1,003	)
Valuation write-downs		(190	)		(272	)		(217	)		(636	)		(847	)
Total	$	12,158		$	14,442		$	18,900		$	25,940		$	35,942

Net loan recoveries were $1.9 million during the third quarter of 2013, or an annualized negative 0.7 percent of average loans, compared with net loan recoveries of $0.4 million (negative 0.2 percent annualized) and net loan charge-offs of $1.5 million (0.6 percent annualized) for the linked and prior-year quarters, respectively.

NET LOAN CHARGE-OFFS (RECOVERIES)

($000s)	3Q 2013			2Q 2013			1Q 2013			4Q 2012			3Q 2012
Residential Real Estate:
Land Development	$	(387	)	$	(119	)	$	690		$	(119	)	$	77
Construction		0			0			0			0			0
Owner Occupied / Rental		(105	)		(301	)		479			16			166
		(492	)		(420	)		1,169			(103	)		243
Commercial Real Estate:
Land Development		0			30			(210	)		55			16
Construction		0			0			0			0			0
Owner Occupied		(74	)		(6	)		54			515			86
Non-Owner Occupied		(1,215	)		79			61			(112	)		1,317
		(1,289	)		103			(95	)		458			1,419
Non-Real Estate:
Commercial Assets		(172	)		(95	)		69			(935	)		(148	)
Consumer Assets		5			1			(1	)		(35	)		13
		(167	)		(94	)		68			(970	)		(135	)
Total	$	(1,948	)	$	(411	)	$	1,142		$	(615	)	$	1,527

Capital Position

Shareholders’ equity totaled $150 million as of September 30, 2013, an increase of $3.2 million from year-end 2012. The Bank remains “well-capitalized” with a total risk-based capital ratio of 15.3 percent as of September 30, 2013, compared to 14.7 percent at December 31, 2012. At September 30, 2013, the Bank had approximately $64 million in excess of the 10.0 percent minimum regulatory threshold required to be considered a “well-capitalized” institution. Mercantile reported 8,707,534 total shares outstanding at September 30, 2013.

Reflecting the continued strength of Mercantile’s operating performance and capital position, on October 10, 2013, the Board of Directors declared a fourth quarter cash dividend of $0.12 per common share, which is payable on December 10, 2013 to shareholders of record on November 8, 2013.

Mr. Price concluded: “As we work to consummate our merger of equals with Firstbank Corporation, we continue to make steady progress within the current Mercantile franchise. We believe that this business combination will bring together two very strong community banks to create a major Michigan financial institution. We continue to be a premier community bank with strong customer relationships and a growing pipeline of new business opportunities. The ongoing recovery in the Michigan economy is an additional tailwind for our business. We are optimistic about our ability to create a combined business enterprise that can deliver disciplined growth and increasing value to our shareholders based on steady improvement in financial performance, a strong capital position and new market opportunities in western and central Michigan.”

About Mercantile Bank Corporation

Based in Grand Rapids, Michigan, Mercantile Bank Corporation is the bank holding company for Mercantile Bank of Michigan. Founded in 1997 to provide banking services to businesses, individuals and governmental units, the Bank differentiates itself on the basis of service quality and the expertise of its banking staff. Mercantile has seven full-service banking offices in Grand Rapids, Holland and Lansing, Michigan. Mercantile Bank Corporation’s common stock is listed on the NASDAQ Global Select 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 nontraditional competitors; changes in banking regulation or actions by bank regulators; 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 local real estate values; changes in the national and local economies; and other factors, including risk factors, disclosed 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.

Important Information for Investors

Communications in this press release do not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. The proposed merger and issuance of Mercantile common stock in connection with the proposed merger will be submitted to Mercantile’s shareholders for their consideration, and the proposed merger will be submitted to Firstbank’s shareholders for their consideration. On September 17, 2013 Mercantile filed with the Securities and Exchange Commission (“SEC”) a registration statement on Form S-4 that includes a preliminary joint proxy statement to be used by Mercantile and Firstbank to solicit the required approval of their respective shareholders in connection with the proposed merger, and will constitute a prospectus of Mercantile. Mercantile and Firstbank may also file other documents with the SEC concerning the proposed merger. INVESTORS AND SECURITY HOLDERS OF MERCANTILE AND FIRSTBANK ARE URGED TO READ THE JOINT PROXY STATEMENT AND PROSPECTUS REGARDING THE PROPOSED MERGER AND OTHER RELEVANT DOCUMENTS THAT HAVE BEEN AND WILL BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER. Investors and security holders may obtain a free copy of the joint proxy statement and prospectus and other documents containing important information about Mercantile and Firstbank, once such documents are filed with the SEC, through the website maintained by the SEC at www.sec.gov. Copies of the documents filed with the SEC by Mercantile will be available free of charge on Mercantile’s website at www.mercbank.com under the tab “Investor Relations.” or by contacting Charles Christmas, Chief Financial Officer, at 616-726-1202. Copies of documents filed with the SEC by Firstbank will be available free of charge on Firstbank’s website at www.firstbankmi.com under the tab “Investor Relations.” or by contacting Samuel Stone, Executive Vice President and Chief Financial Officer at (989) 466-7325.

Participants in the Transaction

Mercantile, Firstbank and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Mercantile and Firstbank in connection with the proposed transaction. Information about the directors and executive officers of Mercantile is set forth in its proxy statement for its 2013 annual meeting of shareholders, which was filed with the SEC on March 15, 2013. Information about the directors and executive officers of Firstbank is set forth in its proxy statement for its 2013 annual meeting of shareholders, which was filed with the SEC on March 15, 2013. These documents can be obtained free of charge from the sources indicated above. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement and prospectus and other relevant materials to be filed with the SEC.

FOR FURTHER INFORMATION:

AT MERCANTILE BANK CORPORATION:

Michael Price	Charles Christmas
Chairman & CEO	Chief Financial Officer
616-726-1600	616-726-1202
mprice@mercbank.com	cchristmas@mercbank.com

Mercantile Bank Corporation

Third Quarter 2013 Results

MERCANTILE BANK CORPORATION

CONSOLIDATED BALANCE SHEETS

	SEPTEMBER 30,			DECEMBER 31,			SEPTEMBER 30,
	2013			2012			2012
	(Unaudited)			(Audited)			(Unaudited)
ASSETS
Cash and due from banks	$	33,207,000		$	20,302,000		$	15,311,000
Interest-bearing deposit balances		6,428,000			10,822,000			10,672,000
Federal funds sold		86,283,000			104,879,000			78,012,000
Total cash and cash equivalents		125,918,000			136,003,000			103,995,000
Securities available for sale		123,793,000			138,314,000			135,660,000
Federal Home Loan Bank stock		11,961,000			11,961,000			11,961,000
Loans		1,075,487,000			1,041,189,000			1,035,288,000
Allowance for loan losses		(25,195,000	)		(28,677,000	)		(27,762,000	)
Loans, net		1,050,292,000			1,012,512,000			1,007,526,000
Premises and equipment, net		25,159,000			25,919,000			26,100,000
Bank owned life insurance		51,073,000			50,048,000			49,690,000
Accrued interest receivable		3,777,000			3,874,000			3,939,000
Other real estate owned and repossessed assets		3,549,000			6,970,000			11,160,000
Net deferred tax asset		19,771,000			22,015,000			22,801,000
Other assets		6,710,000			15,310,000			15,532,000
Total assets	$	1,422,003,000		$	1,422,926,000		$	1,388,364,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing	$	216,055,000		$	190,241,000		$	166,890,000
Interest-bearing		905,454,000			944,963,000			940,676,000
Total deposits		1,121,509,000			1,135,204,000			1,107,566,000
Securities sold under agreements to repurchase		65,680,000			64,765,000			60,031,000
Federal Home Loan Bank advances		45,000,000			35,000,000			35,000,000
Subordinated debentures		32,990,000			32,990,000			32,990,000
Accrued interest and other liabilities		6,990,000			8,377,000			8,219,000
Total liabilities		1,272,169,000			1,276,336,000			1,243,806,000
SHAREHOLDERS’ EQUITY
Common stock		163,629,000			166,074,000			166,728,000
Retained earnings (deficit)		(9,264,000	)		(21,134,000	)		(24,183,000	)
Accumulated other comprehensive income (loss)		(4,531,000	)		1,650,000			2,013,000
Total shareholders’ equity		149,834,000			146,590,000			144,558,000
Total liabilities and shareholders’ equity	$	1,422,003,000		$	1,422,926,000		$	1,388,364,000

Mercantile Bank Corporation

Third Quarter 2013 Results

MERCANTILE BANK CORPORATION

CONSOLIDATED REPORTS OF OPERATIONS

	THREE MONTHS ENDED September 30, 2013			THREE MONTHS ENDED September 30, 2012			NINE MONTHS ENDED September 30, 2013			NINE MONTHS ENDED September 30, 2012
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
INTEREST INCOME
Loans, including fees	$	13,411,000		$	13,386,000		$	38,944,000		$	40,653,000
Investment securities		1,214,000			1,328,000			3,780,000			4,460,000
Federal funds sold		38,000			46,000			127,000			116,000
Interest-bearing deposit balances		4,000			8,000			17,000			22,000
Total interest income		14,667,000			14,768,000			42,868,000			45,251,000
INTEREST EXPENSE
Deposits		2,190,000			2,728,000			6,733,000			8,581,000
Short-term borrowings		19,000			39,000			57,000			130,000
Federal Home Loan Bank advances		141,000			183,000			379,000			871,000
Other borrowed money		323,000			234,000			938,000			705,000
Total interest expense		2,673,000			3,184,000			8,107,000			10,287,000
Net interest income		11,994,000			11,584,000			34,761,000			34,964,000
Provision for loan losses		(1,700,000	)		(400,000	)		(4,700,000	)		(3,400,000	)
Net interest income after provision for loan losses		13,694,000			11,984,000			39,461,000			38,364,000
NONINTEREST INCOME
Service charges on accounts		397,000			378,000			1,155,000			1,142,000
Other income		1,286,000			1,679,000			4,126,000			4,789,000
Total noninterest income		1,683,000			2,057,000			5,281,000			5,931,000
NONINTEREST EXPENSE
Salaries and benefits		5,256,000			4,849,000			15,094,000			14,394,000
Occupancy		639,000			598,000			1,921,000			1,947,000
Furniture and equipment		242,000			282,000			754,000			888,000
Nonperforming asset costs		373,000			1,576,000			783,000			4,931,000
FDIC insurance costs		184,000			294,000			604,000			894,000
Merger-related costs		719,000			0			779,000			0
Other expense		2,509,000			2,586,000			7,383,000			7,389,000
Total noninterest expense		9,922,000			10,185,000			27,318,000			30,443,000
Income before federal income tax expense		5,455,000			3,856,000			17,424,000			13,852,000
Federal income tax expense		2,002,000			1,240,000			5,554,000			4,365,000
Net income		3,453,000			2,616,000			11,870,000			9,487,000
Preferred stock dividends and accretion		0			0			0			1,030,000
Net income attributable to common shares	$	3,453,000		$	2,616,000		$	11,870,000		$	8,457,000
Basic earnings per share	$	0.40		$	0.30		$	1.36		$	0.98
Diluted earnings per share	$	0.40		$	0.30		$	1.36		$	0.95
Average basic shares outstanding		8,707,038			8,622,719			8,706,133			8,612,831
Average diluted shares outstanding		8,725,268			8,653,751			8,719,956			8,896,728

Mercantile Bank Corporation

Third Quarter 2013 Results

MERCANTILE BANK CORPORATION

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

	Quarterly															Year-To-Date
(dollars in thousands except per share data)	2013			2013			2013			2012			2012
	3rd Qtr			2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2013			2012
EARNINGS
Net interest income	$	11,994			11,312			11,454			11,737			11,584			34,761			34,964
Provision for loan losses	$	(1,700	)		(1,500	)		(1,500	)		300			(400	)		(4,700	)		(3,400	)
Noninterest income	$	1,683			1,772			1,827			2,063			2,057			5,281			5,931
Noninterest expense	$	9,922			8,813			8,584			9,180			10,185			27,318			30,443
Net income before federal income tax expense	$	5,455			5,771			6,197			4,320			3,856			17,424			13,852
Net income	$	3,453			4,016			4,400			3,049			2,616			11,870			9,487
Net income common shares	$	3,453			4,016			4,400			3,049			2,616			11,870			8,457
Basic earnings per share	$	0.40			0.46			0.51			0.35			0.30			1.36			0.98
Diluted earnings per share	$	0.40			0.46			0.50			0.35			0.30			1.36			0.95
Average basic shares outstanding		8,707,038			8,705,667			8,705,677			8,662,034			8,622,719			8,706,133			8,612,831
Average diluted shares outstanding		8,725,268			8,718,649			8,718,601			8,674,342			8,653,751			8,719,956			8,896,728
PERFORMANCE RATIOS
Return on average assets		0.99	%		1.18	%		1.28	%		0.85	%		0.75	%		1.15	%		0.80	%
Return on average equity		9.15	%		10.70	%		12.07	%		8.27	%		7.19	%		10.63	%		7.24	%
Net interest margin (fully tax-equivalent)		3.76	%		3.66	%		3.68	%		3.62	%		3.67	%		3.69	%		3.67	%
Efficiency ratio		72.55	%		67.36	%		64.63	%		66.52	%		74.66	%		68.22	%		74.44	%
Full-time equivalent employees		239			239			231			232			230			239			230
CAPITAL
Period-ending equity to assets		10.54	%		11.23	%		10.81	%		10.30	%		10.41	%		10.54	%		10.41	%
Tier 1 leverage capital ratio		12.57	%		12.52	%		12.01	%		11.31	%		11.40	%		12.57	%		11.40	%
Tier 1 risk-based capital ratio		14.08	%		14.17	%		14.12	%		13.37	%		13.34	%		14.08	%		13.34	%
Total risk-based capital ratio		15.34	%		15.43	%		15.38	%		14.64	%		14.61	%		15.34	%		14.61	%
Book value per common share	$	17.21			17.34			17.20			16.84			16.74			17.21			16.74
Cash dividend per common share	$	0.12			0.11			0.10			0.09			0.00			0.33			0.00
ASSET QUALITY
Gross loan charge-offs	$	85			382			2,415			1,469			1,891			2,882			11,175
Net loan charge-offs (recoveries)	$	(1,948	)		(411	)		1,142			(615	)		1,527			(1,217	)		5,370
Net loan charge-offs to average loans		(0.72	%)		(0.16	%)		0.45	%		(0.24	%)		0.58	%		(0.16	%)		0.68	%
Allowance for loan losses	$	25,195			24,947			26,035			28,677			27,762			25,195			27,762
Allowance for loan losses to total loans		2.34	%		2.36	%		2.55	%		2.75	%		2.68	%		2.34	%		2.68	%
Nonperforming loans	$	8,609			10,526			12,394			18,970			24,782			8,609			24,782
Other real estate and repossessed assets	$	3,549			3,916			6,506			6,970			11,160			3,549			11,160
Nonperforming assets to total assets		0.86	%		1.07	%		1.36	%		1.82	%		2.59	%		0.86	%		2.59	%
END OF PERIOD BALANCES
Loans	$	1,075,487			1,058,662			1,022,956			1,041,189			1,035,288			1,075,487			1,035,288
Total earning assets (before allowance)	$	1,303,952			1,241,945			1,275,325			1,307,165			1,271,593			1,303,952			1,271,593
Total assets	$	1,422,003			1,343,750			1,385,355			1,422,926			1,388,364			1,422,003			1,388,364
Deposits	$	1,121,509			1,061,315			1,092,790			1,135,204			1,107,566			1,121,509			1,107,566
Shareholders’ equity	$	149,834			150,938			149,692			146,590			144,558			149,834			144,558
AVERAGE BALANCES
Loans	$	1,072,199			1,044,527			1,032,066			1,022,047			1,042,370			1,049,744			1,058,470
Total earning assets (before allowance)	$	1,274,532			1,253,661			1,278,824			1,299,623			1,269,836			1,268,990			1,284,706
Total assets	$	1,378,412			1,364,370			1,388,900			1,417,621			1,387,519			1,377,220			1,401,572
Deposits	$	1,086,253			1,075,761			1,098,996			1,127,706			1,109,817			1,086,957			1,104,739
Shareholders’ equity	$	149,785			150,478			147,783			146,244			144,251			149,356			155,634