Exhibit 99.1
Mercantile Bank Corporation Reports Strong Third Quarter 2019 Results
Continued strength in core profitability and increased loan originations highlight quarter
GRAND RAPIDS, Mich., October 15, 2019 – Mercantile Bank Corporation (NASDAQ: MBWM) ("Mercantile") reported net income of $12.6 million, or $0.77 per diluted share, for the third quarter of 2019, compared with net income of $10.1 million, or $0.61 per diluted share, for the respective prior-year period. Net income during the first nine months of 2019 totaled $36.1 million, or $2.20 per diluted share, compared to $30.5 million, or $1.83 per diluted share, during the first nine months of 2018.
Bank owned life insurance claims and a gain on the sale of a former branch facility increased reported net income during the first nine months of 2019 by approximately $3.1 million, or $0.19 per diluted share. Interest income related to purchased loan accounting entries increased net income during the first nine months of 2019 by $0.9 million, or $0.05 per diluted share, and net income during the first nine months of 2018 by $2.7 million, or $0.16 per diluted share. Excluding the impacts of these transactions, diluted earnings per share increased $0.29, or 17.4 percent, during the first nine months of 2019 compared to the respective 2018 period.
“We are very pleased to once again report a quarter of robust operating performance, representing a continuation of the financial trends demonstrated during the first six months of the year,” said Robert B. Kaminski, Jr., President and Chief Executive Officer of Mercantile. “Our sustained strength in core profitability, solid capital position, and healthy commercial loan and residential mortgage loan pipelines give us confidence that the sound financial performance exhibited during the first three quarters of the year will continue in the fourth quarter and beyond.”
Third quarter highlights include:
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Strong earnings performance and capital position |
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Increased fee income |
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Controlled overhead costs |
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Strong asset quality |
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Annualized net loan growth of approximately 7 percent |
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New commercial term loan originations of $153 million |
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Continued strength in commercial and residential loan pipelines |
Operating Results
Total revenue, which consists of net interest income and noninterest income, was $38.3 million during the third quarter of 2019, up $3.7 million, or 10.8 percent, from the prior-year third quarter. Reflecting a higher level of earning assets, net interest income of $31.6 million during the third quarter of 2019 was up $1.8 million, or 5.9 percent, from the third quarter of 2018.
The net interest margin was 3.71 percent in the third quarter of 2019. The yield on average earning assets equaled 4.73 percent during the third quarter of 2019, up from 4.60 percent during the respective 2018 period mainly due to an increased yield on commercial loans. The improved yield on commercial loans primarily reflected the positive impact of higher interest rates on variable-rate commercial loans stemming from the Federal Open Market Committee’s (“FOMC”) raising of the targeted federal funds rate by 25 basis points in both September and December 2018. The impact of these rate increases more than offset the negative impact of lower interest rates on variable-rate commercial loans resulting from the FOMC’s lowering of the targeted federal funds rate by 25 basis points in both July and September 2019. The cost of funds equaled 1.02 percent during the third quarter of 2019, up from 0.73 percent during the prior-year third quarter mainly due to an increased cost of time deposits and a change in funding mix. Increased reliance on more costly wholesale funds during the twelve months ended September 30, 2019, most of which occurred in the fourth quarter of 2018 and January 2019, was necessitated by various funding requirements, including ongoing loan growth and seasonal deposit withdrawals by certain business customers for bonus and tax payments.
Net interest income and the net interest margin during the third quarters of 2019 and 2018, and the first nine months of the current year and prior year, were affected by purchase accounting accretion and amortization associated with fair value measurements. Increases in interest income on loans totaling $0.3 million and $0.4 million were recorded during the third quarters of 2019 and 2018, respectively, and increases of $1.1 million and $3.4 million were recorded during the first nine months of 2019 and 2018, respectively. 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 a $0.7 million provision for loan losses during the third quarter of 2019 compared to a $0.4 million provision during the respective 2018 period. The provision expense recorded during both periods mainly reflected ongoing net loan growth.
Noninterest income during the third quarter of 2019 was $6.7 million, up $2.0 million, or nearly 42 percent, from the prior-year third quarter. The improved level of noninterest income primarily reflected increased mortgage banking activity income stemming from the success of continuing strategic initiatives designed to increase market presence, along with a higher level of refinance activity resulting from a recent decrease in residential mortgage loan interest rates. Increased credit and debit card income, service charges on accounts, and payroll processing fees also contributed to the higher level of noninterest income.
Noninterest expense totaled $22.0 million during the third quarter of 2019, up $0.4 million, or 1.7 percent, from the respective 2018 period. The higher level of expense primarily resulted from increased salary costs, mainly reflecting annual employee merit pay increases, higher mortgage loan originator commissions, and increased stock-based compensation expense.
“We are extremely pleased with the growth in certain key fee income categories, most notably in mortgage banking activity income,” continued Mr. Kaminski. “The significant increase in mortgage banking activity income reflects the success of ongoing strategic initiatives implemented across the organization to boost market penetration, a higher percentage of originated residential mortgage loans being sold, and enhanced refinance activity stemming from a recent decline in residential mortgage loan interest rates. We remain committed to controlling our overhead costs, in large part reflecting the administration of a sustainable business model.”
Balance Sheet
As of September 30, 2019, total assets were $3.71 billion, up $346 million, or 10.3 percent, from December 31, 2018. Total loans and interest-earning deposits increased $180 million and $134 million, respectively, over the same time period. During the twelve months ended September 30, 2019, total loans were up $236 million, or 8.7 percent. Approximately $153 million and $412 million in commercial term loans to new and existing borrowers were originated during the third quarter and first nine months of 2019, respectively, as ongoing sales and relationship-building efforts resulted in increased lending opportunities. As of September 30, 2019, unfunded commitments on commercial construction and development loans totaled approximately $91 million, which are expected to be largely funded over the next 12 to 18 months. The growth in interest-earning deposits mainly stemmed from certain deposit-gathering initiatives and an increase in wholesale funds.
Ray Reitsma, President of Mercantile Bank of Michigan, noted, “We are pleased with the increase in net loans during the current quarter, which equated to an annualized growth rate of about 7 percent. The net loan growth realized during the quarter reflected an increase in the commercial portfolio, most notably in the owner-occupied commercial real estate and non-owner occupied commercial real estate segments, along with growth in the residential mortgage loan portfolio. New commercial term loan originations remained strong during the quarter, representing the highest quarterly level since the second quarter of 2016. As evidenced by the solid loan growth during the quarter, our lending team continues to successfully identify new customer relationships and meet the needs of our existing customer base. We have not wavered from our commitment to grow the loan portfolio in a disciplined manner, with a continuing focus on responsible loan pricing and sound asset quality. We remain committed to maintaining the combined commercial and industrial loan and owner-occupied commercial real estate loan portfolio segments at a minimum percentage of total commercial loans. Our commercial loan and residential mortgage loan pipelines remain strong.”
As of September 30, 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 expectations.
Total deposits at September 30, 2019, were $2.77 billion, up $303 million from December 31, 2018. Local deposits and brokered deposits were up $263 million and $40.2 million, respectively, during the first nine months of 2019. The growth in local deposits was mainly driven by a special time deposit campaign that was introduced mid first quarter and ended in early April, along with increases in business money market accounts and noninterest-bearing checking accounts. The growth in noninterest-bearing checking accounts primarily reflected new commercial loan relationships. Wholesale funds were $517 million, or approximately 16 percent of total funds, as of September 30, 2019, compared to $474 million, or approximately 16 percent of total funds, as of December 31, 2018.
Asset Quality
Nonperforming assets at September 30, 2019, were $2.9 million, or 0.1 percent of total assets, compared to $5.0 million, or 0.2 percent of total assets, at December 31, 2018. 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 third quarter of 2019, loan charge-offs totaled $0.5 million while recoveries of prior period loan charge-offs equaled $0.2 million, providing for net loan charge-offs of $0.3 million, or an annualized 0.05 percent of average total loans. During the first nine months of 2019, loan charge-offs totaled $0.8 million while recoveries of prior period loan charge-offs equaled $0.4 million, providing for net loan charge-offs of $0.4 million, or an annualized 0.02 percent of average total loans.
Capital Position
Shareholders’ equity totaled $407 million as of September 30, 2019, an increase of $32.0 million from year-end 2018. The Bank’s capital position remains above “well-capitalized” with a total risk-based capital ratio of 12.5 percent as of September 30, 2019, compared to 12.3 percent at December 31, 2018. At September 30, 2019, the Bank had approximately $84 million in excess of the 10.0 percent minimum regulatory threshold required to be considered a “well-capitalized” institution. Mercantile reported 16,332,660 total shares outstanding at September 30, 2019.
As part of a $20 million common stock repurchase program announced in May 2019 and instituted in conjunction with the completion of its existing program that was introduced in January 2015 and later expanded in April 2016, Mercantile repurchased approximately 112,000 shares for $3.5 million, or a weighted average all-in cost per share of $31.36, during the third quarter of 2019. During the period of January 2015 through September 2019, Mercantile repurchased approximately 1,390,000 shares for $32.6 million, or a weighted average all-in cost per share of $23.47, under the original and new programs on a combined basis.
Mr. Kaminski concluded, “As a result of our strong financial performance during the first three quarters of 2019, we are well positioned to meet our profitability and growth objectives for the year. The cash dividend program, which includes providing shareholders with a competitive dividend yield on a consistent basis, furthers our commitment to enhancing total shareholder value. We have been able to successfully gain new clients and retain existing customers through our market-leading products and services as well as an emphasis on developing mutually-beneficial relationships. We are excited about the opportunities we believe are available to us to expand our presence in our markets, and we are confident that the demonstrated solid operating performance during the first nine months of the year will continue during the fourth quarter and subsequent periods.”
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 $3.7 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 & CEO | Executive Vice President & CFO | |
| 616-726-1502 | 616-726-1202 | |
| rkaminski@mercbank.com | cchristmas@mercbank.com |
MERCANTILE BANK CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
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SEPTEMBER 30, |
DECEMBER 31, |
SEPTEMBER 30, |
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2019 |
2018 |
2018 |
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ASSETS |
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Cash and due from banks |
$ | 84,275,000 | $ | 64,872,000 | $ | 51,824,000 | ||||||
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Interest-earning deposits |
144,263,000 | 10,482,000 | 28,193,000 | |||||||||
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Total cash and cash equivalents |
228,538,000 | 75,354,000 | 80,017,000 | |||||||||
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Securities available for sale |
345,533,000 | 337,366,000 | 326,531,000 | |||||||||
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Federal Home Loan Bank stock |
18,002,000 | 16,022,000 | 11,072,000 | |||||||||
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Loans |
2,933,013,000 | 2,753,085,000 | 2,697,417,000 | |||||||||
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Allowance for loan losses |
(24,414,000 | ) | (22,380,000 | ) | (21,692,000 | ) | ||||||
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Loans, net |
2,908,599,000 | 2,730,705,000 | 2,675,725,000 | |||||||||
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Premises and equipment, net |
54,585,000 | 48,321,000 | 48,104,000 | |||||||||
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Bank owned life insurance |
67,993,000 | 69,647,000 | 69,628,000 | |||||||||
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Goodwill |
49,473,000 | 49,473,000 | 49,473,000 | |||||||||
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Core deposit intangible, net |
4,237,000 | 5,561,000 | 6,038,000 | |||||||||
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Other assets |
33,420,000 | 31,458,000 | 33,518,000 | |||||||||
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Total assets |
$ | 3,710,380,000 | $ | 3,363,907,000 | $ | 3,300,106,000 | ||||||
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Deposits: |
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Noninterest-bearing |
$ | 967,189,000 | $ | 889,784,000 | $ | 879,442,000 | ||||||
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Interest-bearing |
1,799,902,000 | 1,573,924,000 | 1,629,368,000 | |||||||||
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Total deposits |
2,767,091,000 | 2,463,708,000 | 2,508,810,000 | |||||||||
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Securities sold under agreements to repurchase |
103,990,000 | 103,519,000 | 112,378,000 | |||||||||
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Federal Home Loan Bank advances |
364,000,000 | 350,000,000 | 240,000,000 | |||||||||
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Subordinated debentures |
46,710,000 | 46,199,000 | 46,029,000 | |||||||||
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Accrued interest and other liabilities |
21,389,000 | 25,232,000 | 13,424,000 | |||||||||
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Total liabilities |
3,303,180,000 | 2,988,658,000 | 2,920,641,000 | |||||||||
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SHAREHOLDERS' EQUITY |
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Common stock |
304,065,000 | 308,005,000 | 312,544,000 | |||||||||
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Retained earnings |
98,876,000 | 75,483,000 | 80,275,000 | |||||||||
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Accumulated other comprehensive income/(loss) |
4,259,000 | (8,239,000 | ) | (13,354,000 | ) | |||||||
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Total shareholders' equity |
407,200,000 | 375,249,000 | 379,465,000 | |||||||||
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Total liabilities and shareholders' equity |
$ | 3,710,380,000 | $ | 3,363,907,000 | $ | 3,300,106,000 | ||||||
MERCANTILE BANK CORPORATION
CONSOLIDATED REPORTS OF INCOME
(Unaudited)
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THREE MONTHS ENDED |
THREE MONTHS ENDED |
NINE MONTHS ENDED |
NINE MONTHS ENDED |
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September 30, 2019 |
September 30, 2018 |
September 30, 2019 |
September 30, 2018 |
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INTEREST INCOME |
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Loans, including fees |
$ | 37,005,000 | $ | 32,918,000 | $ | 109,559,000 | $ | 97,087,000 | ||||||||
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Investment securities |
2,660,000 | 2,255,000 | 7,587,000 | 6,628,000 | ||||||||||||
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Other interest-earning assets |
651,000 | 313,000 | 1,627,000 | 1,071,000 | ||||||||||||
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Total interest income |
40,316,000 | 35,486,000 | 118,773,000 | 104,786,000 | ||||||||||||
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INTEREST EXPENSE |
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Deposits |
5,573,000 | 3,574,000 | 15,906,000 | 9,921,000 | ||||||||||||
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Short-term borrowings |
71,000 | 63,000 | 244,000 | 181,000 | ||||||||||||
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Federal Home Loan Bank advances |
2,257,000 | 1,201,000 | 6,751,000 | 3,134,000 | ||||||||||||
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Other borrowed money |
810,000 | 808,000 | 2,506,000 | 2,286,000 | ||||||||||||
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Total interest expense |
8,711,000 | 5,646,000 | 25,407,000 | 15,522,000 | ||||||||||||
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Net interest income |
31,605,000 | 29,840,000 | 93,366,000 | 89,264,000 | ||||||||||||
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Provision for loan losses |
700,000 | 400,000 | 2,450,000 | 1,100,000 | ||||||||||||
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Net interest income after provision for loan losses |
30,905,000 | 29,440,000 | 90,916,000 | 88,164,000 | ||||||||||||
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NONINTEREST INCOME |
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Service charges on accounts |
1,185,000 | 1,127,000 | 3,406,000 | 3,259,000 | ||||||||||||
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Credit and debit card income |
1,547,000 | 1,378,000 | 4,397,000 | 3,955,000 | ||||||||||||
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Mortgage banking income |
2,889,000 | 1,235,000 | 5,291,000 | 3,115,000 | ||||||||||||
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Payroll services |
367,000 | 328,000 | 1,227,000 | 1,128,000 | ||||||||||||
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Earnings on bank owned life insurance |
330,000 | 318,000 | 3,567,000 | 969,000 | ||||||||||||
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Other income |
358,000 | 322,000 | 1,755,000 | 1,213,000 | ||||||||||||
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Total noninterest income |
6,676,000 | 4,708,000 | 19,643,000 | 13,639,000 | ||||||||||||
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NONINTEREST EXPENSE |
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Salaries and benefits |
13,680,000 | 12,932,000 | 39,982,000 | 38,027,000 | ||||||||||||
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Occupancy |
1,697,000 | 1,648,000 | 5,089,000 | 5,049,000 | ||||||||||||
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Furniture and equipment |
629,000 | 659,000 | 1,885,000 | 1,789,000 | ||||||||||||
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Data processing costs |
2,342,000 | 2,150,000 | 6,854,000 | 6,415,000 | ||||||||||||
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Other expense |
3,679,000 | 4,261,000 | 12,134,000 | 12,931,000 | ||||||||||||
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Total noninterest expense |
22,027,000 | 21,650,000 | 65,944,000 | 64,211,000 | ||||||||||||
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Income before federal income tax expense |
15,554,000 | 12,498,000 | 44,615,000 | 37,592,000 | ||||||||||||
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Federal income tax expense |
2,954,000 | 2,375,000 | 8,476,000 | 7,142,000 | ||||||||||||
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Net Income |
$ | 12,600,000 | $ | 10,123,000 | $ | 36,139,000 | $ | 30,450,000 | ||||||||
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Basic earnings per share |
$ | 0.77 | $ | 0.61 | $ | 2.20 | $ | 1.83 | ||||||||
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Diluted earnings per share |
$ | 0.77 | $ | 0.61 | $ | 2.20 | $ | 1.83 | ||||||||
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Average basic shares outstanding |
16,390,203 | 16,611,411 | 16,415,843 | 16,602,701 | ||||||||||||
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Average diluted shares outstanding |
16,393,078 | 16,619,295 | 16,420,845 | 16,610,544 | ||||||||||||
MERCANTILE BANK CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
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Quarterly |
Year-To-Date |
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| (dollars in thousands except per share data) | 2019 | 2019 | 2019 | 2018 | 2018 | |||||||||||||||||||||||
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3rd Qtr |
2nd Qtr |
1st Qtr |
4th Qtr |
3rd Qtr |
2019 |
2018 |
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EARNINGS |
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Net interest income |
$ | 31,605 | 31,116 | 30,645 | 30,818 | 29,840 | 93,366 | 89,264 | ||||||||||||||||||||
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Provision for loan losses |
$ | 700 | 900 | 850 | 0 | 400 | 2,450 | 1,100 | ||||||||||||||||||||
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Noninterest income |
$ | 6,676 | 6,334 | 6,632 | 5,370 | 4,708 | 19,643 | 13,639 | ||||||||||||||||||||
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Noninterest expense |
$ | 22,027 | 22,087 | 21,830 | 21,958 | 21,650 | 65,944 | 64,211 | ||||||||||||||||||||
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Net income before federal income tax expense |
$ | 15,554 | 14,463 | 14,597 | 14,230 | 12,498 | 44,615 | 37,592 | ||||||||||||||||||||
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Net income |
$ | 12,600 | 11,715 | 11,824 | 11,573 | 10,123 | 36,139 | 30,450 | ||||||||||||||||||||
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Basic earnings per share |
$ | 0.77 | 0.71 | 0.72 | 0.70 | 0.61 | 2.20 | 1.83 | ||||||||||||||||||||
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Diluted earnings per share |
$ | 0.77 | 0.71 | 0.72 | 0.70 | 0.61 | 2.20 | 1.83 | ||||||||||||||||||||
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Average basic shares outstanding |
16,390,203 | 16,428,187 | 16,429,571 | 16,594,412 | 16,611,411 | 16,415,843 | 16,602,701 | |||||||||||||||||||||
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Average diluted shares outstanding |
16,393,078 | 16,434,714 | 16,435,176 | 16,600,108 | 16,619,295 | 16,420,845 | 16,610,544 | |||||||||||||||||||||
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PERFORMANCE RATIOS |
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Return on average assets |
1.38 | % | 1.33 | % | 1.39 | % | 1.39 | % | 1.22 | % | 1.37 | % | 1.25 | % | ||||||||||||||
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Return on average equity |
12.39 | % | 12.08 | % | 12.75 | % | 12.40 | % | 10.64 | % | 12.40 | % | 10.97 | % | ||||||||||||||
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Net interest margin (fully tax-equivalent) |
3.71 | % | 3.79 | % | 3.88 | % | 3.98 | % | 3.87 | % | 3.79 | % | 3.95 | % | ||||||||||||||
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Efficiency ratio |
57.54 | % | 58.98 | % | 58.56 | % | 60.68 | % | 62.67 | % | 58.40 | % | 62.40 | % | ||||||||||||||
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Full-time equivalent employees |
624 | 652 | 631 | 630 | 637 | 624 | 637 | |||||||||||||||||||||
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YIELD ON ASSETS / COST OF FUNDS |
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Yield on loans |
5.06 | % | 5.18 | % | 5.21 | % | 5.08 | % | 4.91 | % | 5.15 | % | 4.99 | % | ||||||||||||||
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Yield on securities |
2.99 | % | 2.85 | % | 2.82 | % | 2.80 | % | 2.70 | % | 2.89 | % | 2.65 | % | ||||||||||||||
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Yield on other interest-earning assets |
2.15 | % | 2.38 | % | 2.40 | % | 2.20 | % | 1.98 | % | 2.32 | % | 1.73 | % | ||||||||||||||
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Yield on total earning assets |
4.73 | % | 4.85 | % | 4.89 | % | 4.80 | % | 4.60 | % | 4.82 | % | 4.63 | % | ||||||||||||||
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Yield on total assets |
4.42 | % | 4.53 | % | 4.56 | % | 4.46 | % | 4.28 | % | 4.50 | % | 4.31 | % | ||||||||||||||
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Cost of deposits |
0.83 | % | 0.85 | % | 0.77 | % | 0.63 | % | 0.56 | % | 0.82 | % | 0.53 | % | ||||||||||||||
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Cost of borrowed funds |
2.35 | % | 2.40 | % | 2.43 | % | 2.22 | % | 2.14 | % | 2.39 | % | 2.00 | % | ||||||||||||||
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Cost of interest-bearing liabilities |
1.52 | % | 1.55 | % | 1.47 | % | 1.26 | % | 1.11 | % | 1.52 | % | 1.02 | % | ||||||||||||||
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Cost of funds (total earning assets) |
1.02 | % | 1.06 | % | 1.01 | % | 0.82 | % | 0.73 | % | 1.03 | % | 0.68 | % | ||||||||||||||
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Cost of funds (total assets) |
0.95 | % | 0.99 | % | 0.94 | % | 0.76 | % | 0.68 | % | 0.96 | % | 0.64 | % | ||||||||||||||
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PURCHASE ACCOUNTING ADJUSTMENTS |
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Loan portfolio - increase interest income |
$ | 327 | 569 | 211 | 603 | 386 | 1,107 | 3,434 | ||||||||||||||||||||
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Trust preferred - increase interest expense |
$ | 171 | 171 | 171 | 171 | 171 | 513 | 513 | ||||||||||||||||||||
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Core deposit intangible - increase overhead |
$ | 397 | 450 | 477 | 477 | 477 | 1,324 | 1,563 | ||||||||||||||||||||
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MORTGAGE BANKING ACTIVITY |
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Total mortgage loans originated |
$ | 132,852 | 80,205 | 44,932 | 44,448 | 66,829 | 257,989 | 169,798 | ||||||||||||||||||||
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Purchase mortgage loans originated |
$ | 61,839 | 41,986 | 29,891 | 29,729 | 47,704 | 133,716 | 114,080 | ||||||||||||||||||||
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Refinance mortgage loans originated |
$ | 71,013 | 38,219 | 15,041 | 14,719 | 19,125 | 124,273 | 55,718 | ||||||||||||||||||||
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Total mortgage loans sold |
$ | 104,890 | 49,396 | 21,502 | 21,805 | 30,713 | 175,788 | 74,640 | ||||||||||||||||||||
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Net gain on sale of mortgage loans |
$ | 2,886 | 1,419 | 698 | 829 | 1,116 | 5,003 | 2,696 | ||||||||||||||||||||
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CAPITAL |
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Tangible equity to tangible assets |
9.67 | % | 9.82 | % | 9.41 | % | 9.68 | % | 9.98 | % | 9.67 | % | 9.98 | % | ||||||||||||||
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Tier 1 leverage capital ratio |
11.08 | % | 11.17 | % | 11.16 | % | 11.41 | % | 11.76 | % | 11.08 | % | 11.76 | % | ||||||||||||||
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Common equity risk-based capital ratio |
10.54 | % | 10.47 | % | 10.46 | % | 10.41 | % | 10.93 | % | 10.54 | % | 10.93 | % | ||||||||||||||
|
Tier 1 risk-based capital ratio |
11.88 | % | 11.82 | % | 11.84 | % | 11.80 | % | 12.35 | % | 11.88 | % | 12.35 | % | ||||||||||||||
|
Total risk-based capital ratio |
12.61 | % | 12.55 | % | 12.56 | % | 12.50 | % | 13.05 | % | 12.61 | % | 13.05 | % | ||||||||||||||
|
Tier 1 capital |
$ | 395,010 | 388,788 | 379,334 | 373,721 | 382,829 | 395,010 | 382,829 | ||||||||||||||||||||
|
Tier 1 plus tier 2 capital |
$ | 419,424 | 412,841 | 402,469 | 396,102 | 404,521 | 419,424 | 404,521 | ||||||||||||||||||||
|
Total risk-weighted assets |
$ | 3,325,217 | 3,289,958 | 3,204,295 | 3,167,655 | 3,100,158 | 3,325,217 | 3,100,158 | ||||||||||||||||||||
|
Book value per common share |
$ | 24.93 | 24.34 | 23.37 | 22.70 | 22.84 | 24.93 | 22.84 | ||||||||||||||||||||
|
Tangible book value per common share |
$ | 21.64 | 21.05 | 20.05 | 19.37 | 19.50 | 21.64 | 19.50 | ||||||||||||||||||||
|
Cash dividend per common share |
$ | 0.27 | 0.26 | 0.26 | 1.00 | 0.24 | 0.79 | 0.68 | ||||||||||||||||||||
|
ASSET QUALITY |
||||||||||||||||||||||||||||
|
Gross loan charge-offs |
$ | 519 | 78 | 174 | 354 | 169 | 771 | 1,096 | ||||||||||||||||||||
|
Recoveries |
$ | 180 | 96 | 79 | 1,042 | 294 | 355 | 2,187 | ||||||||||||||||||||
|
Net loan charge-offs (recoveries) |
$ | 339 | (18 | ) | 95 | (688 | ) | (125 | ) | 416 | (1,091 | ) | ||||||||||||||||
|
Net loan charge-offs to average loans |
0.05 | % | (0.01% | ) | 0.01 | % | (0.10% | ) | (0.02% | ) | 0.02 | % | (0.06% | ) | ||||||||||||||
|
Allowance for loan losses |
$ | 24,414 | 24,053 | 23,135 | 22,380 | 21,692 | 24,414 | 21,692 | ||||||||||||||||||||
|
Allowance to originated loans |
0.88 | % | 0.89 | % | 0.89 | % | 0.88 | % | 0.88 | % | 0.88 | % | 0.88 | % | ||||||||||||||
|
Nonperforming loans |
$ | 2,644 | 3,505 | 4,138 | 4,141 | 4,852 | 2,644 | 4,852 | ||||||||||||||||||||
|
Other real estate/repossessed assets |
$ | 243 | 446 | 396 | 811 | 948 | 243 | 948 | ||||||||||||||||||||
|
Nonperforming loans to total loans |
0.09 | % | 0.12 | % | 0.15 | % | 0.15 | % | 0.18 | % | 0.09 | % | 0.18 | % | ||||||||||||||
|
Nonperforming assets to total assets |
0.08 | % | 0.11 | % | 0.13 | % | 0.15 | % | 0.18 | % | 0.08 | % | 0.18 | % | ||||||||||||||
|
NONPERFORMING ASSETS - COMPOSITION |
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|
Residential real estate: |
||||||||||||||||||||||||||||
|
Land development |
$ | 32 | 33 | 45 | 0 | 0 | 32 | 0 | ||||||||||||||||||||
|
Construction |
$ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
|
Owner occupied / rental |
$ | 2,576 | 3,225 | 3,404 | 3,555 | 3,908 | 2,576 | 3,908 | ||||||||||||||||||||
|
Commercial real estate: |
||||||||||||||||||||||||||||
|
Land development |
$ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
|
Construction |
$ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||
|
Owner occupied |
$ | 240 | 642 | 791 | 1,363 | 1,543 | 240 | 1,543 | ||||||||||||||||||||
|
Non-owner occupied |
$ | 26 | 26 | 62 | 0 | 0 | 26 | 0 | ||||||||||||||||||||
|
Non-real estate: |
||||||||||||||||||||||||||||
|
Commercial assets |
$ | 0 | 2 | 207 | 17 | 331 | 0 | 331 | ||||||||||||||||||||
|
Consumer assets |
$ | 13 | 23 | 25 | 17 | 18 | 13 | 18 | ||||||||||||||||||||
|
Total nonperforming assets |
2,887 | 3,951 | 4,534 | 4,952 | 5,800 | 2,887 | 5,800 | |||||||||||||||||||||
|
NONPERFORMING ASSETS - RECON |
||||||||||||||||||||||||||||
|
Beginning balance |
$ | 3,951 | 4,534 | 4,952 | 5,800 | 5,807 | 4,952 | 9,403 | ||||||||||||||||||||
|
Additions - originated loans/former branch |
$ | 339 | 26 | 539 | 1,247 | 999 | 904 | 2,725 | ||||||||||||||||||||
|
Merger-related activity |
$ | 57 | 34 | 0 | 0 | 5 | 91 | 51 | ||||||||||||||||||||
|
Return to performing status |
$ | (126 | ) | 0 | 0 | 0 | 0 | (126 | ) | (175 | ) | |||||||||||||||||
|
Principal payments |
$ | (1,014 | ) | (512 | ) | (382 | ) | (1,836 | ) | (857 | ) | (1,908 | ) | (3,192 | ) | |||||||||||||
|
Sale proceeds |
$ | (253 | ) | (74 | ) | (429 | ) | (128 | ) | (147 | ) | (756 | ) | (2,253 | ) | |||||||||||||
|
Loan charge-offs |
$ | (59 | ) | (36 | ) | (146 | ) | (57 | ) | (3 | ) | (241 | ) | (650 | ) | |||||||||||||
|
Valuation write-downs |
$ | (8 | ) | (21 | ) | 0 | (74 | ) | (4 | ) | (29 | ) | (109 | ) | ||||||||||||||
|
Ending balance |
$ | 2,887 | 3,951 | 4,534 | 4,952 | 5,800 | 2,887 | 5,800 | ||||||||||||||||||||
|
LOAN PORTFOLIO COMPOSITION |
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|
Commercial: |
||||||||||||||||||||||||||||
|
Commercial & industrial |
$ | 882,747 | 881,196 | 839,207 | 822,723 | 818,113 | 882,747 | 818,113 | ||||||||||||||||||||
|
Land development & construction |
$ | 48,418 | 45,158 | 45,892 | 44,885 | 39,396 | 48,418 | 39,396 | ||||||||||||||||||||
|
Owner occupied comm'l R/E |
$ | 567,267 | 556,868 | 551,517 | 548,619 | 542,730 | 567,267 | 542,730 | ||||||||||||||||||||
|
Non-owner occupied comm'l R/E |
$ | 883,079 | 852,844 | 835,679 | 816,282 | 811,767 | 883,079 | 811,767 | ||||||||||||||||||||
|
Multi-family & residential rental |
$ | 126,855 | 128,489 | 127,903 | 127,597 | 94,101 | 126,855 | 94,101 | ||||||||||||||||||||
|
Total commercial |
$ | 2,508,366 | 2,464,555 | 2,400,198 | 2,360,106 | 2,306,107 | 2,508,366 | 2,306,107 | ||||||||||||||||||||
|
Retail: |
||||||||||||||||||||||||||||
|
1-4 family mortgages |
$ | 346,095 | 335,618 | 316,315 | 307,540 | 301,765 | 346,095 | 301,765 | ||||||||||||||||||||
|
Home equity & other consumer |
$ | 78,552 | 81,320 | 83,126 | 85,439 | 89,545 | 78,552 | 89,545 | ||||||||||||||||||||
|
Total retail |
$ | 424,647 | 416,938 | 399,441 | 392,979 | 391,310 | 424,647 | 391,310 | ||||||||||||||||||||
|
Total loans |
$ | 2,933,013 | 2,881,493 | 2,799,639 | 2,753,085 | 2,697,417 | 2,933,013 | 2,697,417 | ||||||||||||||||||||
|
END OF PERIOD BALANCES |
||||||||||||||||||||||||||||
|
Loans |
$ | 2,933,013 | 2,881,493 | 2,799,639 | 2,753,085 | 2,697,417 | 2,933,013 | 2,697,417 | ||||||||||||||||||||
|
Securities |
$ | 363,535 | 365,926 | 355,878 | 353,388 | 337,603 | 363,535 | 337,603 | ||||||||||||||||||||
|
Other interest-earning assets |
$ | 144,263 | 92,750 | 168,572 | 10,482 | 28,193 | 144,263 | 28,193 | ||||||||||||||||||||
|
Total earning assets (before allowance) |
$ | 3,440,811 | 3,340,169 | 3,324,089 | 3,116,955 | 3,063,213 | 3,440,811 | 3,063,213 | ||||||||||||||||||||
|
Total assets |
$ | 3,710,380 | 3,576,139 | 3,551,754 | 3,363,907 | 3,300,106 | 3,710,380 | 3,300,106 | ||||||||||||||||||||
|
Noninterest-bearing deposits |
$ | 967,189 | 918,581 | 857,734 | 889,784 | 879,442 | 967,189 | 879,442 | ||||||||||||||||||||
|
Interest-bearing deposits |
$ | 1,799,902 | 1,700,628 | 1,753,240 | 1,573,924 | 1,629,368 | 1,799,902 | 1,629,368 | ||||||||||||||||||||
|
Total deposits |
$ | 2,767,091 | 2,619,209 | 2,610,974 | 2,463,708 | 2,508,810 | 2,767,091 | 2,508,810 | ||||||||||||||||||||
|
Total borrowed funds |
$ | 517,523 | 543,098 | 544,566 | 513,220 | 401,575 | 517,523 | 401,575 | ||||||||||||||||||||
|
Total interest-bearing liabilities |
$ | 2,317,425 | 2,243,726 | 2,297,806 | 2,087,144 | 2,030,943 | 2,317,425 | 2,030,943 | ||||||||||||||||||||
|
Shareholders' equity |
$ | 407,200 | 400,117 | 383,729 | 375,249 | 379,465 | 407,200 | 379,465 | ||||||||||||||||||||
|
AVERAGE BALANCES |
||||||||||||||||||||||||||||
|
Loans |
$ | 2,903,161 | 2,848,343 | 2,787,430 | 2,706,617 | 2,658,092 | 2,846,735 | 2,602,718 | ||||||||||||||||||||
|
Securities |
$ | 363,394 | 357,718 | 354,459 | 343,597 | 342,593 | 358,557 | 343,983 | ||||||||||||||||||||
|
Other interest-earning assets |
$ | 118,314 | 94,616 | 67,915 | 30,564 | 61,810 | 93,800 | 82,700 | ||||||||||||||||||||
|
Total earning assets (before allowance) |
$ | 3,384,869 | 3,300,677 | 3,209,804 | 3,080,778 | 3,062,495 | 3,299,092 | 3,029,401 | ||||||||||||||||||||
|
Total assets |
$ | 3,622,168 | 3,529,598 | 3,441,774 | 3,312,648 | 3,295,129 | 3,531,841 | 3,259,153 | ||||||||||||||||||||
|
Noninterest-bearing deposits |
$ | 930,851 | 875,645 | 852,247 | 905,065 | 893,181 | 886,536 | 849,337 | ||||||||||||||||||||
|
Interest-bearing deposits |
$ | 1,741,563 | 1,719,433 | 1,668,563 | 1,579,632 | 1,628,346 | 1,710,120 | 1,651,186 | ||||||||||||||||||||
|
Total deposits |
$ | 2,672,414 | 2,595,078 | 2,520,810 | 2,484,697 | 2,521,527 | 2,596,656 | 2,500,523 | ||||||||||||||||||||
|
Total borrowed funds |
$ | 529,590 | 530,802 | 532,864 | 434,365 | 383,830 | 531,073 | 375,307 | ||||||||||||||||||||
|
Total interest-bearing liabilities |
$ | 2,271,153 | 2,250,235 | 2,201,427 | 2,013,997 | 2,012,176 | 2,241,193 | 2,026,493 | ||||||||||||||||||||
|
Shareholders' equity |
$ | 403,350 | 389,133 | 376,103 | 370,175 | 377,574 | 389,628 | 371,005 | ||||||||||||||||||||