Mercantile Bank (MBWM) 8-K Mercantile Bank Corporation Reports Strong First Quarter 2019 Results

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