EX-99.1 2 ex_140767.htm EXHIBIT 99.1 ex_140767.htm

Exhibit 99.1

 

 

 

Mercantile Bank Corporation Reports Strong First Quarter 2019 Results

Continued strength in core profitability and loan originations highlight quarter

 

GRAND RAPIDS, Mich., April 16, 2019 – Mercantile Bank Corporation (NASDAQ: MBWM) ("Mercantile") reported net income of $11.8 million, or $0.72 per diluted share, for the first quarter of 2019, compared with net income of $10.9 million, or $0.66 per diluted share, for the respective prior-year period. A bank owned life insurance claim and a gain on the sale of a former branch facility during the first quarter of 2019 increased net income by approximately $1.8 million, or $0.11 per diluted share, while the successful collection of certain commercial loan relationships during the prior-year first quarter increased reported net income by approximately $1.7 million, or $0.10 per diluted share. Excluding the impacts of these specific transactions, diluted earnings per share increased $0.05, or nearly 9 percent, during the current-year first quarter compared to the prior-year first quarter.

 

“We are very pleased to start 2019 with a quarter that depicts continued strength in core profitability and loan originations,” said Robert B. Kaminski, Jr., President and Chief Executive Officer of Mercantile. “Our robust financial results reflect a strong net interest margin, increased fee income, and controlled overhead costs. Based on our healthy loan pipelines and sound financial condition, we are confident that our demonstrated solid operating results will continue in future periods, and we are in a position to take advantage of future growth opportunities.”

 

First quarter highlights include:

 

 

Strong earnings and capital position

 

Robust net interest margin

 

Growth in key fee income categories

 

Controlled overhead costs

 

Sound asset quality, as depicted by low levels of nonperforming assets and loans in the 30- to 89-days delinquent category

 

Annualized net loan growth of nearly 7 percent

 

New commercial term loan originations of approximately $125 million

 

Continued strength in commercial and residential loan pipelines

 

Increased regular quarterly cash dividend

 

 

 

 

Operating Results

 

Total revenue, which consists of net interest income and noninterest income, was $37.3 million during the first quarter of 2019, up $2.7 million, or 7.8 percent, from the prior-year first quarter. Net interest income during the first quarter of 2019 was $30.6 million, up $0.4 million, or 1.5 percent, from the first quarter of 2018, primarily reflecting a higher level of earning assets.

 

The net interest margin was 3.88 percent in the first quarter of 2019. The yield on average earning assets equaled 4.89 percent during the first quarter of 2019, up from 4.70 percent during the prior-year first quarter primarily due to a change in earning mix and an increased yield on commercial loans, the latter mainly reflecting the positive impact of higher interest rates on variable-rate commercial loans stemming from the Federal Open Market Committee raising the targeted federal funds rate by 25 basis points in each of March, June, September, and December 2018. On average, higher-yielding loans represented 86.8 percent of earning assets during the first quarter of 2019, up from 84.4 percent during the prior-year first quarter, while lower-yielding interest-earning deposits represented 2.1 percent of earning assets during the current-year first quarter, down from 4.1 percent during the respective 2018 period. The cost of funds equaled 1.01 percent during the first quarter of 2019, up from 0.64 percent during the respective 2018 period mainly due to increased costs of time deposits, borrowed funds, and certain non-time deposit accounts, and a change in funding mix. Increased reliance on more costly wholesale funds during the first quarter of 2019 was necessitated by various funding requirements, including loan growth and seasonal deposit withdrawals by certain business customers for bonus and tax payments. The net interest margin of 4.06 percent during the prior-year first quarter benefited from the successful collection of certain nonperforming commercial loan relationships that were paid in full, while a higher level of interest-earning deposits negatively impacted the margin during the same time period. Excluding the impacts of these factors, the net interest margin equaled approximately 3.85 percent during the first quarter of 2018.

 

Net interest income and the net interest margin during the first quarter of 2019 and the prior-year first quarter were affected by purchase accounting accretion and amortization entries associated with the fair value measurements recorded effective June 1, 2014. Increases in interest income on loans totaling $0.2 million and $2.3 million were recorded during the first quarters of 2019 and 2018, respectively. An increase in interest expense on subordinated debentures totaling $0.2 million was recorded during both the current-year first quarter and prior-year first quarter. Purchased loan accretion amounts vary from period to period as a result of periodic cash flow re-estimations, loan payoffs, and payment performance.

 

Mercantile recorded provision expense of $0.9 million during the first quarter of 2019, compared to no provision expense during the respective 2018 period. The provision expense recorded during the current-year first quarter mainly reflected ongoing net loan growth. No provision expense was made during the prior-year first quarter in light of net loan recoveries being recorded during the period.

 

Noninterest income during the first quarter of 2019 was $6.6 million, compared to $4.4 million during the prior-year first quarter. Noninterest income during the first quarter of 2019 included a bank owned life insurance claim of $1.3 million and a gain on the sale of a former branch facility of $0.6 million. Excluding the impacts of these transactions, noninterest income increased $0.4 million, or 8.2 percent, during the current-year first quarter compared to the respective 2018 period. The higher level of noninterest income primarily reflected increased mortgage banking activity income and credit and debit card income. Increased service charges on accounts and payroll processing fees also contributed to the higher level of noninterest income.

 

 

 

 

Noninterest expense totaled $21.8 million during the first quarter of 2019, up $0.7 million, or 3.2 percent, from the prior-year first quarter. The higher level of expense primarily resulted from increased salary costs, mainly reflecting pay increases for all hourly employees that went into effect on April 1, 2018, and annual employee merit pay increases.

 

Mr. Kaminski continued, “As expected, our net interest margin remained robust during the first quarter of 2019, reflecting our continuing focus on risk-based loan pricing and prudent underwriting. We are pleased to report growth in certain fee income categories, illustrating the success of ongoing strategic initiatives, and remain committed to controlling overhead costs. The enhancement of mortgage banking activity income through increased market share remains a priority. To further our market penetration, we continue to hire proven mortgage loan originators when opportunities arise. We are also hopeful that recent declines in residential mortgage loan rates will spur increased refinance activity and create additional mortgage banking activity income.”

 

Balance Sheet

 

As of March 31, 2019, total assets were $3.55 billion, up $188 million, or 5.6 percent, from December 31, 2018. Interest-earning deposits and total loans increased $158 million and $46.6 million, respectively, over the same time period. The growth in interest-earning deposits mainly stemmed from certain deposit-gathering initiatives and an increase in wholesale funds. During the twelve months ended March 31, 2019, total loans were up $248 million, or 9.7 percent. Approximately $125 million in commercial term loans to new and existing borrowers were originated during the first quarter of 2019, as ongoing sales and relationship-building efforts resulted in increased lending opportunities. As of March 31, 2019, unfunded commitments on commercial construction and development loans totaled approximately $147 million, which are expected to be largely funded over the next 12 to 18 months.

 

Ray Reitsma, President of Mercantile Bank of Michigan, noted, “We are very pleased with the net loan growth achieved during first quarter of 2019, which was largely fueled by increases in commercial and industrial loans and owner-occupied commercial real estate loans. New commercial term loan originations during the quarter were once again in line with quarterly originations over the past few years. Members of our lending team continue to identify and attract new client relationships and meet the needs of our existing customers with a continuing commitment to sound quality and appropriate pricing. We also remain mindful of growing the portfolio in adherence with internal initiatives, which includes maintaining the combined commercial and industrial loan and owner-occupied commercial real estate loan portfolios at a minimum percentage of total commercial loans. Our residential mortgage portfolio grew for the twelfth consecutive quarter, a majority of which consists of adjustable rate residential mortgage loans, reflecting the continuing success of strategic initiatives intended to increase our market penetration. Based on our current commercial loan and residential mortgage loan pipelines, we are confident that solid loan growth can be realized in future periods.”

 

As of March 31, 2019, commercial and industrial loans and owner-occupied commercial real estate loans combined represented approximately 58 percent of total commercial loans, a level that has remained relatively consistent and in line with internal proportional initiatives.

 

 

 

 

Total deposits at March 31, 2019 were $2.61 billion, up $147 million from December 31, 2018. Local deposits and brokered deposits were up $75.0 million and $72.3 million, respectively, during the first three months of 2019. The growth in local deposits was mainly driven by a special time deposit campaign that was introduced in mid first quarter and that has since ended, along with an increase in business money market accounts. Wholesale funds were $570 million, or approximately 18 percent of total funds, as of March 31, 2019, compared to $474 million, or approximately 16 percent of total funds, as of December 31, 2018. A substantial portion of the growth in wholesale funds during the first quarter of 2019 occurred in January; the monies were used primarily to fund strong loan growth recorded in late 2018 and early 2019 and offset typical and expected seasonal business deposit withdrawals used for bonus and tax payments, as well as to maintain sufficient balance sheet liquidity.

 

Asset Quality

 

Nonperforming assets at March 31, 2019, were $4.5 million, or 0.1 percent of total assets, compared to $5.0 million, or 0.2 percent of total assets, at December 31, 2018, and $8.1 million, or 0.3 percent of total assets, at March 31, 2018. The decline in nonperforming assets during the twelve months ended March 31, 2019, mainly reflects successful loan collection efforts and sales of bank-owned properties that were no longer being used or considered for use as bank facilities. The level of past due loans remains nominal, and loan relationships on the internal watch list have remained relatively consistent in number and dollar volume.

 

During the first quarter of 2019, loan charge-offs totaled $0.2 million while recoveries of prior period charge-offs equaled $0.1 million, providing for net loan charge-offs of $0.1 million, or an annualized 0.01 percent of average total loans.

 

Capital Position

 

Shareholders’ equity totaled $384 million as of March 31, 2019, an increase of $8.5 million from year-end 2018. The Bank’s capital position remains above “well-capitalized” with a total risk-based capital ratio of 12.4 percent as of March 31, 2019, compared to 12.3 percent at December 31, 2018. At March 31, 2019, the Bank had approximately $77 million in excess of the 10.0 percent minimum regulatory threshold required to be considered a “well-capitalized” institution. Mercantile reported 16,421,025 total shares outstanding at March 31, 2019.

 

As part of a $20 million common stock repurchase program announced in January 2015 and later expanded by $15 million in April 2016, Mercantile repurchased approximately 119,000 shares for $3.6 million, or a weighted average all-in cost per share of $30.23, during the first quarter of 2019. Since the program’s inception, Mercantile repurchased approximately 1,275,000 shares for $29.0 million, or a weighted average all-in cost per share of $22.77. Future share repurchases totaling $6.0 million can be made under the program.

 

Mr. Kaminski concluded, “In light of our continuing financial strength, we are well-positioned to further enhance shareholder value and meet targeted growth goals. Our sustained cash dividend program and related competitive dividend yield demonstrate our commitment to increasing shareholder value. As reflected by growth in the commercial and residential loan portfolios and deposits, our emphasis on building and cultivating value-added relationships continues to successfully attract new customers as well as retain existing clients. We are very excited about Mercantile’s future and are confident that the sound financial results achieved during the first quarter of 2019 will continue in the current year and beyond.”

 

 

 

 

About Mercantile Bank Corporation

 

Based in Grand Rapids, Michigan, Mercantile Bank Corporation is the bank holding company for Mercantile Bank of Michigan.  Mercantile provides banking services to businesses, individuals and governmental units, and differentiates itself on the basis of service quality and the expertise of its banking staff. Mercantile has assets of approximately $3.5 billion and operates 46 banking offices. 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.

 

FOR FURTHER INFORMATION:

 

     

  Robert B. Kaminski, Jr.  Charles Christmas
  President and CEO  Executive Vice President and CFO
  616-726-1502 616-726-1202
  rkaminski@mercbank.com cchristmas@mercbank.com

 

 

 

 

MERCANTILE BANK CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

   

MARCH 31,

   

DECEMBER 31,

   

MARCH 31,

 
   

2019

   

2018

   

2018

 
                         

ASSETS

                       

Cash and due from banks

  $ 46,322,000     $ 64,872,000     $ 47,278,000  

Interest-earning deposits

    168,572,000       10,482,000       163,879,000  

Total cash and cash equivalents

    214,894,000       75,354,000       211,157,000  
                         

Securities available for sale

    337,876,000       337,366,000       336,988,000  

Federal Home Loan Bank stock

    18,002,000       16,022,000       11,036,000  
                         

Loans

    2,799,639,000       2,753,085,000       2,551,204,000  

Allowance for loan losses

    (23,135,000 )     (22,380,000 )     (19,974,000 )

Loans, net

    2,776,504,000       2,730,705,000       2,531,230,000  
                         

Premises and equipment, net

    50,109,000       48,321,000       46,300,000  

Bank owned life insurance

    69,789,000       69,647,000       69,010,000  

Goodwill

    49,473,000       49,473,000       49,473,000  

Core deposit intangible, net

    5,084,000       5,561,000       7,044,000  

Other assets

    30,023,000       31,458,000       31,662,000  
                         

Total assets

  $ 3,551,754,000     $ 3,363,907,000     $ 3,293,900,000  
                         
                         

LIABILITIES AND SHAREHOLDERS' EQUITY

                       

Deposits:

                       

Noninterest-bearing

  $ 857,734,000     $ 889,784,000     $ 830,187,000  

Interest-bearing

    1,753,240,000       1,573,924,000       1,709,866,000  

Total deposits

    2,610,974,000       2,463,708,000       2,540,053,000  
                         

Securities sold under agreements to repurchase

    111,235,000       103,519,000       104,894,000  

Federal Home Loan Bank advances

    384,000,000       350,000,000       220,000,000  

Subordinated debentures

    46,369,000       46,199,000       45,688,000  

Accrued interest and other liabilities

    15,447,000       25,232,000       14,925,000  

Total liabilities

    3,168,025,000       2,988,658,000       2,925,560,000  
                         

SHAREHOLDERS' EQUITY

                       

Common stock

    305,346,000       308,005,000       310,601,000  

Retained earnings

    83,107,000       75,483,000       68,283,000  

Accumulated other comprehensive income/(loss)

    (4,724,000 )     (8,239,000 )     (10,544,000 )

Total shareholders' equity

    383,729,000       375,249,000       368,340,000  
                         

Total liabilities and shareholders' equity

  $ 3,551,754,000     $ 3,363,907,000     $ 3,293,900,000  

 

 

 

 

MERCANTILE BANK CORPORATION

CONSOLIDATED REPORTS OF INCOME

(Unaudited)

 

   

THREE MONTHS ENDED

   

THREE MONTHS ENDED

 
   

March 31, 2019

   

March 31, 2018

 
                 

INTEREST INCOME

               

Loans, including fees

  $ 35,789,000     $ 32,315,000  

Investment securities

    2,441,000       2,196,000  

Other interest-earning assets

    407,000       470,000  

Total interest income

    38,637,000       34,981,000  
                 

INTEREST EXPENSE

               

Deposits

    4,804,000       3,085,000  

Short-term borrowings

    104,000       57,000  

Federal Home Loan Bank advances

    2,234,000       945,000  

Other borrowed money

    850,000       695,000  

Total interest expense

    7,992,000       4,782,000  
                 

Net interest income

    30,645,000       30,199,000  
                 

Provision for loan losses

    850,000       0  
                 

Net interest income after provision for loan losses

    29,795,000       30,199,000  
                 

NONINTEREST INCOME

               

Service charges on accounts

    1,077,000       1,053,000  

Credit and debit card income

    1,337,000       1,243,000  

Mortgage banking income

    1,057,000       884,000  

Payroll services

    505,000       482,000  

Earnings on bank owned life insurance

    1,630,000       331,000  

Other income

    1,026,000       388,000  

Total noninterest income

    6,632,000       4,381,000  
                 

NONINTEREST EXPENSE

               

Salaries and benefits

    13,015,000       12,337,000  

Occupancy

    1,762,000       1,772,000  

Furniture and equipment

    635,000       548,000  

Data processing costs

    2,216,000       2,128,000  

Other expense

    4,202,000       4,362,000  

Total noninterest expense

    21,830,000       21,147,000  
                 

Income before federal income tax expense

    14,597,000       13,433,000  
                 

Federal income tax expense

    2,773,000       2,552,000  
                 

Net Income

  $ 11,824,000     $ 10,881,000  
                 

Basic earnings per share

  $ 0.72     $ 0.66  

Diluted earnings per share

  $ 0.72     $ 0.66  
                 

Average basic shares outstanding

    16,429,571       16,595,115  

Average diluted shares outstanding

    16,435,176       16,604,325  

 

 

 

 

MERCANTILE BANK CORPORATION

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

 

   

Quarterly

 

(dollars in thousands except per share data)

 

2019

   

2018

   

2018

   

2018

   

2018

 
   

1st Qtr

   

4th Qtr

   

3rd Qtr

   

2nd Qtr

   

1st Qtr

 

EARNINGS

                                       

Net interest income

  $ 30,645       30,818       29,840       29,225       30,199  

Provision for loan losses

  $ 850       0       400       700       0  

Noninterest income

  $ 6,632       5,370       4,708       4,550       4,381  

Noninterest expense

  $ 21,830       21,958       21,650       21,414       21,147  

Net income before federal income tax expense

  $ 14,597       14,230       12,498       11,661       13,433  

Net income

  $ 11,824       11,573       10,123       9,446       10,881  

Basic earnings per share

  $ 0.72       0.70       0.61       0.57       0.66  

Diluted earnings per share

  $ 0.72       0.70       0.61       0.57       0.66  

Average basic shares outstanding

    16,429,571       16,594,412       16,611,411       16,601,400       16,595,115  

Average diluted shares outstanding

    16,435,176       16,600,108       16,619,295       16,610,819       16,604,325  
                                         

PERFORMANCE RATIOS

                                       

Return on average assets

    1.39 %     1.39 %     1.22 %     1.17 %     1.36 %

Return on average equity

    12.75 %     12.40 %     10.64 %     10.25 %     12.07 %

Net interest margin (fully tax-equivalent)

    3.88 %     3.98 %     3.87 %     3.92 %     4.06 %

Efficiency ratio

    58.56 %     60.68 %     62.67 %     63.40 %     61.15 %

Full-time equivalent employees

    631       630       637       667       640  
                                         

YIELD ON ASSETS / COST OF FUNDS

                                       

Yield on loans

    5.21 %     5.08 %     4.91 %     4.92 %     5.14 %

Yield on securities

    2.82 %     2.80 %     2.70 %     2.64 %     2.61 %

Yield on other interest-earning assets

    2.40 %     2.20 %     1.98 %     1.80 %     1.52 %

Yield on total earning assets

    4.89 %     4.80 %     4.60 %     4.60 %     4.70 %

Yield on total assets

    4.56 %     4.46 %     4.28 %     4.27 %     4.37 %

Cost of deposits

    0.77 %     0.63 %     0.56 %     0.53 %     0.50 %

Cost of borrowed funds

    2.43 %     2.22 %     2.14 %     2.01 %     1.83 %

Cost of interest-bearing liabilities

    1.47 %     1.26 %     1.11 %     1.02 %     0.94 %

Cost of funds (total earning assets)

    1.01 %     0.82 %     0.73 %     0.68 %     0.64 %

Cost of funds (total assets)

    0.94 %     0.76 %     0.68 %     0.63 %     0.60 %
                                         

PURCHASE ACCOUNTING ADJUSTMENTS

                                       

Loan portfolio - increase interest income

  $ 211       603       386       777       2,271  

Trust preferred - increase interest expense

  $ 171       171       171       171       171  

Core deposit intangible - increase overhead

  $ 477       477       477       530       556  
                                         

MORTGAGE BANKING ACTIVITY

                                       

Total mortgage loans originated

  $ 44,932       44,448       66,829       62,032       40,937  

Purchase mortgage loans originated

  $ 29,891       29,729       47,704       41,239       25,137  

Refinance mortgage loans originated

  $ 15,041       14,719       19,125       20,793       15,800  

Total mortgage loans sold

  $ 21,502       21,805       30,713       24,114       19,813  

Net gain on sale of mortgage loans

  $ 698       829       1,116       851       729  
                                         

CAPITAL

                                       

Tangible equity to tangible assets

    9.41 %     9.68 %     9.98 %     9.87 %     9.63 %

Tier 1 leverage capital ratio

    11.16 %     11.41 %     11.76 %     11.81 %     11.50 %

Common equity risk-based capital ratio

    10.46 %     10.41 %     10.93 %     11.03 %     11.04 %

Tier 1 risk-based capital ratio

    11.84 %     11.80 %     12.35 %     12.49 %     12.52 %

Total risk-based capital ratio

    12.56 %     12.50 %     13.05 %     13.19 %     13.20 %

Tier 1 capital

  $ 379,334       373,721       382,829       375,167       367,546  

Tier 1 plus tier 2 capital

  $ 402,469       396,102       404,521       396,334       387,520  

Total risk-weighted assets

  $ 3,204,295       3,167,655       3,100,158       3,003,778       2,935,367  

Book value per common share

  $ 23.37       22.70       22.84       22.57       22.19  

Tangible book value per common share

  $ 20.05       19.37       19.50       19.20       18.79  

Cash dividend per common share

  $ 0.26       1.00       0.24       0.22       0.22  
                                         

ASSET QUALITY

                                       

Gross loan charge-offs

  $ 174       354       169       273       654  

Recoveries

  $ 79       1,042       294       766       1,127  

Net loan charge-offs (recoveries)

  $ 95       (688 )     (125 )     (493 )     (473 )

Net loan charge-offs (recoveries) to average loans

    0.01 %     (0.10% )     (0.02% )     (0.08% )     (0.08% )

Allowance for loan losses

  $ 23,135       22,380       21,692       21,167       19,974  

Allowance to originated loans

    0.89 %     0.88 %     0.88 %     0.89 %     0.87 %

Nonperforming loans

  $ 4,138       4,141       4,852       4,965       5,742  

Other real estate/repossessed assets

  $ 396       811       948       842       2,384  

Nonperforming loans to total loans

    0.15 %     0.15 %     0.18 %     0.19 %     0.23 %

Nonperforming assets to total assets

    0.13 %     0.15 %     0.18 %     0.18 %     0.25 %
                                         

NONPERFORMING ASSETS - COMPOSITION

                                       

Residential real estate:

                                       

Land development

  $ 45       0       0       0       0  

Construction

  $ 0       0       0       0       0  

Owner occupied / rental

  $ 3,404       3,555       3,908       3,650       3,571  

Commercial real estate:

                                       

Land development

  $ 0       0       0       0       0  

Construction

  $ 0       0       0       0       0  

Owner occupied

  $ 791       1,363       1,543       1,957       3,913  

Non-owner occupied

  $ 62       0       0       0       0  

Non-real estate:

                                       

Commercial assets

  $ 207       17       331       180       620  

Consumer assets

  $ 25       17       18       20       22  

Total nonperforming assets

  $ 4,534       4,952       5,800       5,807       8,126  
                                         

NONPERFORMING ASSETS - RECON

                                       

Beginning balance

  $ 4,952       5,800       5,807       8,126       9,403  

Additions - originated loans & former bank facilities

  $ 539       1,247       999       300       1,426  

Merger-related activity

  $ 0       0       5       17       29  

Return to performing status

  $ 0       0       0       0       (175 )

Principal payments

  $ (382 )     (1,836 )     (857 )     (778 )     (1,557 )

Sale proceeds

  $ (429 )     (128 )     (147 )     (1,807 )     (299 )

Loan charge-offs

  $ (146 )     (57 )     (3 )     (50 )     (597 )

Valuation write-downs

  $ 0       (74 )     (4 )     (1 )     (104 )

Ending balance

  $ 4,534       4,952       5,800       5,807       8,126  
                                         

LOAN PORTFOLIO COMPOSITION

                                       

Commercial:

                                       

Commercial & industrial

  $ 839,207       822,723       818,113       776,995       739,805  

Land development & construction

  $ 45,892       44,885       39,396       37,868       31,437  

Owner occupied comm'l R/E

  $ 551,517       548,619       542,730       533,075       531,152  

Non-owner occupied comm'l R/E

  $ 835,679       816,282       811,767       818,376       794,206  

Multi-family & residential rental

  $ 127,903       127,597       94,101       95,656       96,428  

Total commercial

  $ 2,400,198       2,360,106       2,306,107       2,261,970       2,193,028  

Retail:

                                       

1-4 family mortgages

  $ 316,315       307,540       301,765       283,657       264,996  

Home equity & other consumer

  $ 83,126       85,439       89,545       91,229       93,180  

Total retail

  $ 399,441       392,979       391,310       374,886       358,176  

Total loans

  $ 2,799,639       2,753,085       2,697,417       2,636,856       2,551,204  
                                         

END OF PERIOD BALANCES

                                       

Loans

  $ 2,799,639       2,753,085       2,697,417       2,636,856       2,551,204  

Securities

  $ 355,878       353,388       337,603       342,178       348,024  

Other interest-earning assets

  $ 168,572       10,482       28,193       69,402       163,879  

Total earning assets (before allowance)

  $ 3,324,089       3,116,955       3,063,213       3,048,436       3,063,107  

Total assets

  $ 3,551,754       3,363,907       3,300,106       3,288,521       3,293,900  

Noninterest-bearing deposits

  $ 857,734       889,784       879,442       884,470       830,187  

Interest-bearing deposits

  $ 1,753,240       1,573,924       1,629,368       1,645,341       1,709,866  

Total deposits

  $ 2,610,974       2,463,708       2,508,810       2,529,811       2,540,053  

Total borrowed funds

  $ 544,566       513,220       401,575       373,642       373,824  

Total interest-bearing liabilities

  $ 2,297,806       2,087,144       2,030,943       2,018,983       2,083,690  

Shareholders' equity

  $ 383,729       375,249       379,465       374,919       368,340  
                                         

AVERAGE BALANCES

                                       

Loans

  $ 2,787,430       2,706,617       2,658,092       2,596,828       2,552,070  

Securities

  $ 354,459       343,597       342,593       340,990       348,431  

Other interest-earning assets

  $ 67,915       30,564       61,810       63,336       123,633  

Total earning assets (before allowance)

  $ 3,209,804       3,080,778       3,062,495       3,001,154       3,024,134  

Total assets

  $ 3,441,774       3,312,648       3,295,129       3,232,038       3,249,794  

Noninterest-bearing deposits

  $ 852,247       905,065       893,181       848,650       805,214  

Interest-bearing deposits

  $ 1,668,563       1,579,632       1,628,346       1,635,755       1,690,135  

Total deposits

  $ 2,520,810       2,484,697       2,521,527       2,484,405       2,495,349  

Total borrowed funds

  $ 532,864       434,365       383,830       365,124       376,890  

Total interest-bearing liabilities

  $ 2,201,427       2,013,997       2,012,176       2,000,879       2,067,025  

Shareholders' equity

  $ 376,103       370,175       377,574       365,521       365,521