Exhibit 99.1
News Release
| Independent Bank Corporation |
| 4200 East Beltline |
| Grand Rapids, MI 49525 |
| 616.527.5820 |
| Contact: | William B. Kessel, President and CEO, 616.447.3933 |
Robert N. Shuster, Chief Financial Officer, 616.522.1765
INDEPENDENT BANK CORPORATION REPORTS
2017 FIRST QUARTER RESULTS
GRAND RAPIDS, Mich., Apr. 24, 2017 - Independent Bank Corporation (NASDAQ: IBCP) reported first quarter 2017 net income of $6.0 million, or $0.28 per diluted share, versus net income of $4.1 million, or $0.19 per diluted share, in the prior-year period.
2017 highlights include:
| · | Net income and diluted earnings per share increased 45.7% and 47.4%, respectively, over 2016; |
| · | A year-over-year and sequential increase in quarterly net interest income of $1.7 million and $1.2 million, respectively; |
| · | First quarter net growth in total portfolio loans of $62.5 million, or 15.8% annualized; |
| · | Continued improvement in asset quality metrics with a $4.1 million, or 22.3%, decline in non-performing assets during the first quarter; |
| · | An increase in tangible book value per share to $11.89, or 2.3%. |
William B. (“Brad”) Kessel, the President and Chief Executive Officer of Independent Bank Corporation, commented: “We are pleased to report a solid start to 2017. Strong loan growth and continued improvement in asset quality metrics helped lead to a 46% increase in our net income. Net interest income increased on both a sequential and year-over-year quarterly basis. Our expanded mortgage-banking operations contributed to growth in gains on mortgage loans and income from mortgage loan servicing. As we look ahead to the remainder of 2017, we remain focused on loan growth, stable to improving asset quality, building core deposits and increasing revenues.”
Operating Results
The Company’s net interest income totaled $21.5 million during the first quarter of 2017, an increase of $1.7 million, or 8.6%, from the year-ago period, and an increase of $1.2 million, or 6.0% from the fourth quarter of 2016. The Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”) was 3.69% during the first quarter of 2017 compared to 3.61% in the year ago period, and 3.45% in the fourth quarter of 2016. The year-over-year quarterly increase in net interest income is due to increases in both the net interest margin and in average interest-earning assets. Although the prolonged low interest rate environment has continued to pressure loan yields, this has been offset by growth in the amount of interest-earning assets, particularly loans. Total average interest-earning assets were $2.37 billion in the first quarter of 2017 compared to $2.21 billion in the year ago quarter and $2.37 billion in the fourth quarter of 2016. Net interest income included net recoveries of interest on non-accrual or previously charged-off loans of $0.50 million in the first quarter of 2017 compared to $0.55 million in the year ago quarter and $0.06 million in the fourth quarter of 2016.
Non-interest income totaled $10.3 million and $7.8 million in the first quarters of 2017 and 2016, respectively. This increase is primarily due to growth in mortgage-banking related revenues.
Gains on mortgage loans increased $0.9 million, or 56.6%, in the first quarter of 2017 compared to the year ago period due primarily to increases in mortgage loan originations and sales. The increase in mortgage lending and sales volumes principally reflects the expansion of the Company’s mortgage-banking operations with the addition of new personnel and loan production offices.
Mortgage loan servicing generated income of $0.8 million and a loss of $1.0 million in the first quarters of 2017 and 2016, respectively. Effective on Jan. 1, 2017, we adopted the fair value accounting method for capitalized mortgage loan servicing rights. The first quarter of 2017 included a decline in fair value adjustment of $0.3 million. The first quarter of 2016 included amortization and an impairment charge on capitalized mortgage loan servicing rights of $2.0 million.
Non-interest expense totaled $23.6 million in the first quarter of 2017, compared to $22.0 million in the year-ago period, representing an increase of $1.5 million, or 6.9%. This increase was primarily in compensation, payroll taxes and employee benefits costs related principally to the aforementioned expansion of the Company’s mortgage-banking operations.
The Company recorded an income tax expense of $2.6 million and $2.0 million in the first quarters of 2017 and 2016, respectively. Income tax expense represented 30.5% and 32.3% of pre-tax earnings in the first quarters of 2017 and 2016, respectively.
Asset Quality
Commenting on asset quality, President and CEO Kessel added: “We continue to make progress in further improving asset quality, as evidenced by declines in non-performing assets and credit related expenses. In addition, thirty- to eighty-nine day delinquency rates at Mar. 31, 2017 were 0.04% for commercial loans and 0.47% for mortgage and consumer loans. These early stage delinquency rates continue to be well-managed.”
A breakdown of non-performing loans(1) by loan type is as follows:
| Loan Type | | 3/31/2017 | | | 12/31/2016 | | | 3/31/2016 | |
| | | (Dollars in Thousands) | |
| Commercial | | $ | 1,325 | | | $ | 5,163 | | | $ | 3,733 | |
| Consumer/installment | | | 829 | | | | 907 | | | | 809 | |
| Mortgage | | | 6,860 | | | | 7,294 | | | | 6,027 | |
Payment plan receivables(2) | | | -- | | | | -- | | | | 3 | |
| Total | | $ | 9,014 | | | $ | 13,364 | | | $ | 10,572 | |
| Ratio of non-performing loans to total portfolio loans | | | 0.54 | % | | | 0.83 | % | | | 0.69 | % |
| Ratio of non-performing assets to total assets | | | 0.55 | % | | | 0.72 | % | | | 0.69 | % |
| Ratio of the allowance for loan losses to non-performing loans | | | 222.30 | % | | | 151.41 | % | | | 212.78 | % |
| (1) | Excludes loans that are classified as “troubled debt restructured” that are still performing. |
| (2) | At both Mar. 31, 2017 and Dec. 31, 2016, $0.025 million of payment plan receivables that were 90 days or more past due were classified as “held for sale” and not included in the above table. |
Non-performing loans decreased by $4.4 million, or 32.6%, since year-end 2016. The decline in non-performing loans primarily reflects loan charge-offs, pay-offs, negotiated transactions and the migration of loans into other real estate (“ORE”). ORE and repossessed assets totaled $5.3 million at Mar. 31, 2017, compared to $5.0 million at Dec. 31, 2016. In Apr. 2017, the Company closed on the sale of its largest ORE property that had a balance of $2.9 million at Mar. 31, 2017.
The provision for loan losses were credits of $0.4 million and $0.5 million in the first quarters of 2017 and 2016, respectively. The level of the provision for loan losses in each period reflects the Company’s overall assessment of the allowance for loan losses, taking into consideration factors such as loan mix, levels of non-performing and classified loans and loan net charge-offs. The Company recorded loan net recoveries of $0.2 million [(0.04)% annualized of average loans] in the first quarter of 2017, compared to loan net recoveries of $0.5 million [(0.12)% annualized of average loans] in the first quarter of 2016. At Mar. 31, 2017, the allowance for loan losses totaled $20.0 million, or 1.20% of portfolio loans, compared to 20.2 million, or 1.26% of portfolio loans, at Dec. 31, 2016.
Balance Sheet, Liquidity and Capital
Total assets were $2.60 billion at Mar. 31, 2017, an increase of $47.5 million from Dec. 31, 2016. Loans, excluding loans held for sale, were $1.67 billion at Mar. 31, 2017, compared to $1.61 billion at Dec. 31, 2016. Deposits totaled $2.26 billion at Mar. 31, 2017, an increase of $37.3 million from Dec. 31, 2016. The increase in deposits is primarily due to growth in savings and interest-bearing checking account balances.
Cash and cash equivalents totaled $69.8 million at Mar. 31, 2017, versus $83.2 million at Dec. 31, 2016. Securities available for sale totaled $609.0 million at Mar. 31, 2017, versus $610.6 million at Dec. 31, 2016.
Total shareholders’ equity was $255.5 million at Mar. 31, 2017, or 9.84% of total assets. Tangible common equity totaled $253.6 million at Mar. 31, 2017, or $11.89 per share. The Company’s wholly owned subsidiary, Independent Bank, remains significantly above “well capitalized” for regulatory purposes with the following ratios:
Regulatory Capital Ratios | | 3/31/2017 | | 12/31/2016 | | Well Capitalized Minimum | |
| | | | | | | | | | | |
| Tier 1 capital to average total assets | | | 9.96 | % | | | 9.90 | % | | | 5.00 | % | |
| Tier 1 common equity to risk-weighted assets | | | 13.65 | % | | | 13.87 | % | | | 6.50 | % | |
| Tier 1 capital to risk-weighted assets | | | 13.65 | % | | | 13.87 | % | | | 8.00 | % | |
| Total capital to risk-weighted assets | | | 14.77 | % | | | 15.02 | % | | | 10.00 | % | |
Share Repurchase Plan
As previously announced, on Jan. 23, 2017, the Board of Directors of the Company authorized a share repurchase plan. Under the terms of the 2017 share repurchase plan, the Company is authorized to buy back up to 5% of its outstanding common stock. The repurchase plan is authorized to last through Dec. 31, 2017. Thus far in 2017, the Company has not repurchased any shares.
Earnings Conference Call
Brad Kessel, President and CEO, and Rob Shuster, CFO, will review the Company’s first quarter 2017 results in a conference call for investors and analysts beginning at 11:00 am ET on Monday, Apr. 24, 2017.
To participate in the live conference call, please dial 1-866-200-8394. Also the conference call will be accessible through an audio webcast with user-controlled slides via the following event site/URL: http://services.choruscall.com/links/ibcp170424.html.
A playback of the call can be accessed by dialing 1-877-344-7529 (Conference ID # 10103864). The replay will be available through May 1, 2017.
Annual Shareholders Meeting
The Company’s 2017 Annual Meeting of Shareholders is being held at 3:00 pm ET on Tuesday, Apr. 25, 2017. For the third time, the Company will be conducting its Annual Meeting of Shareholders by means of remote communication via the Internet. To attend the meeting, please log on to the Internet at www.virtualshareholdermeeting.com/IBCP2017. At this site a shareholder will be able to vote electronically and submit questions during the meeting.
About Independent Bank Corporation
Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of approximately $2.6 billion. Founded as First National Bank of Ionia in 1864, Independent Bank Corporation operates a branch network across Michigan's Lower Peninsula through one state-chartered bank subsidiary. This subsidiary (Independent Bank) provides a full range of financial services, including commercial banking, mortgage lending, investments and title services. Independent Bank Corporation is committed to providing exceptional personal service and value to its customers, stockholders and the communities it serves.
For more information, please visit our Web site at: IndependentBank.com.
Any statements in this news release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as “anticipates,” “believes,” “contemplates,” “feels,” “expects,” “estimates,” “seeks,” “strives,” “plans,” “intends,” “outlook,” “forecast,” “position,” “target,” “mission,” “assume,” “achievable,” “potential,” “strategy,” “goal,” “aspiration,” “opportunity,” “initiative,” “outcome,” “continue,” “remain,” “maintain,” “on course,” “trend,” “objective,” “looks forward” and variations of such words and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, as they relate to Independent Bank Corporation or its management, are intended to identify forward-looking statements. These forward-looking statements are predicated on the beliefs and assumptions of Independent Bank Corporation's management based on information known to Independent Bank Corporation's management as of the date of this news release and do not purport to speak as of any other date. Forward looking statements may include descriptions of plans and objectives of Independent Bank Corporation's management for future or past operations, products or services, and forecasts of Independent Bank Corporation's revenue, earnings or other measures of economic performance, including statements of profitability, business segments and subsidiaries, and estimates of credit trends. Such statements reflect the view of Independent Bank Corporation's management as of this date with respect to future events and are subject to risks and uncertainties. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, Independent Bank Corporation's actual results could differ materially from those discussed. Factors that could cause or contribute to such differences are changes in general economic, political or industry conditions; changes in monetary and fiscal policies, including the interest rate policies of the Federal Reserve Board; volatility and disruptions in capital and credit markets; the interdependence of financial service companies; changes in regulation or oversight; unfavorable developments concerning credit quality; any future acquisitions or divestitures; the effects of more stringent capital or liquidity requirements; declines or other changes in the businesses or industries of Independent Bank Corporation's customers; the implementation of Independent Bank Corporation's strategies and business models; Independent Bank Corporation's ability to utilize technology to efficiently and effectively develop, market and deliver new products and services; operational difficulties, failure of technology infrastructure or information security incidents; changes in the financial markets, including fluctuations in interest rates and their impact on deposit pricing; competitive product and pricing pressures among financial institutions within Independent Bank Corporation's markets; changes in customer behavior; management's ability to maintain and expand customer relationships; management's ability to retain key officers and employees; the impact of legal and regulatory proceedings or determinations; the effectiveness of methods of reducing risk exposures; the effects of terrorist activities and other hostilities; the effects of catastrophic events; changes in accounting standards and the critical nature of Independent Bank Corporation's accounting policies. Independent Bank Corporation cautions that the foregoing list of factors is not exclusive. For discussion of factors that may cause actual results to differ from expectations, please refer to our filings with the Securities and Exchange Commission. In particular, please refer to “Item 1A. Risk Factors” in Independent Bank Corporation's Annual Report on Form 10-K for the year ended December 31, 2016. Forward-looking statements speak only as of the date they are made. Independent Bank Corporation does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward looking statements are made. For any forward-looking statements made in this news release or in any documents, Independent Bank Corporation claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Financial Condition
| | | March 31, 2017 | | | December 31, 2016 | |
| | | (unaudited) | |
| | | (In thousands, except share amounts) | |
| Assets | |
| Cash and due from banks | | $ | 29,866 | | | $ | 35,238 | |
| Interest bearing deposits | | | 39,957 | | | | 47,956 | |
| Cash and Cash Equivalents | | | 69,823 | | | | 83,194 | |
| Interest bearing deposits - time | | | 5,340 | | | | 5,591 | |
| Trading securities | | | 331 | | | | 410 | |
| Securities available for sale | | | 608,964 | | | | 610,616 | |
| Federal Home Loan Bank and Federal Reserve Bank stock, at cost | | | 15,543 | | | | 15,543 | |
| Loans held for sale, carried at fair value | | | 37,613 | | | | 35,946 | |
| Payment plan receivables and other assets held for sale | | | 34,798 | | | | 33,360 | |
| Loans | | | | | | | | |
| Commercial | | | 815,484 | | | | 804,017 | |
| Mortgage | | | 581,030 | | | | 538,615 | |
| Installment | | | 274,233 | | | | 265,616 | |
| Total Loans | | | 1,670,747 | | | | 1,608,248 | |
| Allowance for loan losses | | | (20,038 | ) | | | (20,234 | ) |
| Net Loans | | | 1,650,709 | | | | 1,588,014 | |
| Other real estate and repossessed assets | | | 5,257 | | | | 5,004 | |
| Property and equipment, net | | | 39,509 | | | | 40,175 | |
| Bank-owned life insurance | | | 53,763 | | | | 54,033 | |
| Deferred tax assets, net | | | 28,954 | | | | 32,818 | |
| Capitalized mortgage loan servicing rights | | | 14,727 | | | | 13,671 | |
| Vehicle service contract counterparty receivables, net | | | 2,176 | | | | 2,271 | |
| Other intangibles | | | 1,845 | | | | 1,932 | |
| Accrued income and other assets | | | 27,130 | | | | 26,372 | |
| Total Assets | | $ | 2,596,482 | | | $ | 2,548,950 | |
| | | | | | | | | |
| Liabilities and Shareholders' Equity | |
| Deposits | | | | | | | | |
| Non-interest bearing | | $ | 710,644 | | | $ | 717,472 | |
| Savings and interest-bearing checking | | | 1,062,582 | | | | 1,015,724 | |
| Reciprocal | | | 41,383 | | | | 38,657 | |
| Time | | | 448,450 | | | | 453,866 | |
| Total Deposits | | | 2,263,059 | | | | 2,225,719 | |
| Other borrowings | | | 9,433 | | | | 9,433 | |
| Subordinated debentures | | | 35,569 | | | | 35,569 | |
| Other liabilities held for sale | | | 1,435 | | | | 718 | |
| Accrued expenses and other liabilities | | | 31,511 | | | | 28,531 | |
| Total Liabilities | | | 2,341,007 | | | | 2,299,970 | |
| | | | | | | | | |
| Shareholders’ Equity | | | | | | | | |
| Preferred stock, no par value, 200,000 shares authorized; none issued or outstanding | | | - | | | | - | |
| Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 21,327,796 shares at March 31, 2017 and 21,258,092 shares at December 31, 2016 | | | 323,775 | | | | 323,745 | |
| Accumulated deficit | | | (61,764 | ) | | | (65,657 | ) |
| Accumulated other comprehensive loss | | | (6,536 | ) | | | (9,108 | ) |
| Total Shareholders’ Equity | | | 255,475 | | | | 248,980 | |
| Total Liabilities and Shareholders’ Equity | | $ | 2,596,482 | | | $ | 2,548,950 | |
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
| | | Three Months Ended | |
| | | March 31, 2017 | | | December 31, 2016 | | | March 31, 2016 | |
| | | (unaudited) | |
| Interest Income | | (In thousands, except per share amounts) | |
| Interest and fees on loans | | $ | 19,858 | | | $ | 18,796 | | | $ | 18,556 | |
| Interest on securities | | | | | | | | | | | | |
| Taxable | | | 2,754 | | | | 2,660 | | | | 2,244 | |
| Tax-exempt | | | 455 | | | | 390 | | | | 248 | |
| Other investments | | | 312 | | | | 311 | | | | 306 | |
| Total Interest Income | | | 23,379 | | | | 22,157 | | | | 21,354 | |
| Interest Expense | | | | | | | | | | | | |
| Deposits | | | 1,443 | | | | 1,421 | | | | 1,114 | |
| Other borrowings | | | 470 | | | | 486 | | | | 477 | |
| Total Interest Expense | | | 1,913 | | | | 1,907 | | | | 1,591 | |
| Net Interest Income | | | 21,466 | | | | 20,250 | | | | 19,763 | |
| Provision for loan losses | | | (359 | ) | | | 130 | | | | (530 | ) |
| Net Interest Income After Provision for Loan Losses | | | 21,825 | | | | 20,120 | | | | 20,293 | |
| Non-interest Income | | | | | | | | | | | | |
| Service charges on deposit accounts | | | 3,009 | | | | 3,242 | | | | 2,845 | |
| Interchange income | | | 1,922 | | | | 2,141 | | | | 1,878 | |
| Net gains on assets | | | | | | | | | | | | |
| Mortgage loans | | | 2,571 | | | | 2,839 | | | | 1,642 | |
| Securities | | | 27 | | | | 261 | | | | 162 | |
| Mortgage loan servicing, net | | | 825 | | | | 2,676 | | | | (978 | ) |
| Title insurance fees | | | 264 | | | | 327 | | | | 288 | |
| Other | | | 1,721 | | | | 1,715 | | | | 1,972 | |
| Total Non-interest Income | | | 10,339 | | | | 13,201 | | | | 7,809 | |
| Non-Interest Expense | | | | | | | | | | | | |
| Compensation and employee benefits | | | 14,147 | | | | 12,667 | | | | 11,881 | |
| Occupancy, net | | | 2,142 | | | | 2,041 | | | | 2,207 | |
| Data processing | | | 1,937 | | | | 1,944 | | | | 2,101 | |
| Furniture, fixtures and equipment | | | 977 | | | | 973 | | | | 984 | |
| Communications | | | 683 | | | | 862 | | | | 888 | |
| Advertising | | | 506 | | | | 446 | | | | 477 | |
| Legal and professional | | | 437 | | | | 564 | | | | 413 | |
| Loan and collection | | | 413 | | | | 548 | | | | 825 | |
| Interchange expense | | | 283 | | | | 302 | | | | 266 | |
| FDIC deposit insurance | | | 198 | | | | 197 | | | | 334 | |
| Credit card and bank service fees | | | 191 | | | | 203 | | | | 187 | |
| Net (gains) losses on other real estate and repossessed assets | | | 11 | | | | 152 | | | | (6 | ) |
| Litigation settlement expense | | | - | | | | 2,300 | | | | - | |
| Loss on sale of payment plan business | | | - | | | | 320 | | | | - | |
| Other | | | 1,644 | | | | 1,359 | | | | 1,488 | |
| Total Non-interest Expense | | | 23,569 | | | | 24,878 | | | | 22,045 | |
| Income Before Income Tax | | | 8,595 | | | | 8,443 | | | | 6,057 | |
| Income tax expense | | | 2,621 | | | | 2,588 | | | | 1,957 | |
| Net Income | | $ | 5,974 | | | $ | 5,855 | | | $ | 4,100 | |
| Net Income Per Common Share | | | | | | | | | | | | |
| Basic | | $ | 0.28 | | | $ | 0.28 | | | $ | 0.19 | |
| Diluted | | $ | 0.28 | | | $ | 0.27 | | | $ | 0.19 | |
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
Selected Financial Data
| | | March 31, 2017 | | | December 31, 2016 | | | September 30, 2016 | | | June 30, 2016 | | | March 31, 2016 | |
| | | (unaudited) | |
| | | (dollars in thousands except per share data) | |
| Three Months Ended | | | | | | | | | | | | | | | |
| Net interest income | | $ | 21,466 | | | $ | 20,250 | | | $ | 19,998 | | | $ | 19,630 | | | $ | 19,763 | |
| Provision for loan losses | | | (359 | ) | | | 130 | | | | (175 | ) | | | (734 | ) | | | (530 | ) |
| Non-interest income | | | 10,339 | | | | 13,201 | | | | 11,708 | | | | 9,580 | | | | 7,809 | |
| Non-interest expense | | | 23,569 | | | | 24,878 | | | | 22,529 | | | | 20,895 | | | | 22,045 | |
| Income before income tax | | | 8,595 | | | | 8,443 | | | | 9,352 | | | | 9,049 | | | | 6,057 | |
| Income tax expense | | | 2,621 | | | | 2,588 | | | | 2,979 | | | | 2,611 | | | | 1,957 | |
| Net income | | $ | 5,974 | | | $ | 5,855 | | | $ | 6,373 | | | $ | 6,438 | | | $ | 4,100 | |
| | | | | | | | | | | | | | | | | | | | | |
| Basic earnings per share | | $ | 0.28 | | | $ | 0.28 | | | $ | 0.30 | | | $ | 0.30 | | | $ | 0.19 | |
| Diluted earnings per share | | | 0.28 | | | | 0.27 | | | | 0.30 | | | | 0.30 | | | | 0.19 | |
| Cash dividend per share | | | 0.10 | | | | 0.10 | | | | 0.08 | | | | 0.08 | | | | 0.08 | |
| | | | | | | | | | | | | | | | | | | | | |
| Average shares outstanding | | | 21,308,396 | | | | 21,248,343 | | | | 21,232,252 | | | | 21,280,926 | | | | 21,751,108 | |
| Average diluted shares outstanding | | | 21,638,768 | | | | 21,587,283 | | | | 21,548,647 | | | | 21,639,077 | | | | 22,061,937 | |
| | | | | | | | | | | | | | | | | | | | | |
| Performance Ratios | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | 0.95 | % | | | 0.91 | % | | | 1.02 | % | | | 1.06 | % | | | 0.68 | % |
| Return on average common equity | | | 9.63 | | | | 9.29 | | | | 10.20 | | | | 10.66 | | | | 6.70 | |
Efficiency ratio (1) | | | 73.29 | | | | 74.19 | | | | 70.25 | | | | 71.27 | | | | 79.67 | |
| | | | | | | | | | | | | | | | | | | | | |
As a Percent of Average Interest-Earning Assets (1) | | | | | | | | | | | | | | | | | |
| Interest income | | | 4.02 | % | | | 3.77 | % | | | 3.81 | % | | | 3.81 | % | | | 3.90 | % |
| Interest expense | | | 0.33 | | | | 0.32 | | | | 0.30 | | | | 0.29 | | | | 0.29 | |
| Net interest income | | | 3.69 | | | | 3.45 | | | | 3.51 | | | | 3.52 | | | | 3.61 | |
| | | | | | | | | | | | | | | | | | | | | |
| Average Balances | | | | | | | | | | | | | | | | | | | | |
| Loans | | $ | 1,690,003 | | | $ | 1,655,222 | | | $ | 1,616,681 | | | $ | 1,577,026 | | | $ | 1,549,789 | |
| Securities available for sale | | | 599,451 | | | | 605,781 | | | | 593,013 | | | | 591,648 | | | | 563,815 | |
| Total earning assets | | | 2,371,705 | | | | 2,365,517 | | | | 2,294,644 | | | | 2,258,536 | | | | 2,210,586 | |
| Total assets | | | 2,559,487 | | | | 2,549,108 | | | | 2,482,002 | | | | 2,447,910 | | | | 2,420,855 | |
| Deposits | | | 2,233,853 | | | | 2,223,446 | | | | 2,158,987 | | | | 2,131,788 | | | | 2,103,477 | |
| Interest bearing liabilities | | | 1,574,306 | | | | 1,547,856 | | | | 1,499,932 | | | | 1,506,335 | | | | 1,497,584 | |
| Shareholders' equity | | | 251,566 | | | | 250,735 | | | | 248,678 | | | | 242,800 | | | | 246,086 | |
| | | | | | | | | | | | | | | | | | | | | |
| End of Period | | | | | | | | | | | | | | | | | | | | |
| Capital | | | | | | | | | | | | | | | | | | | | |
| Tangible common equity ratio | | | 9.78 | % | | | 9.70 | % | | | 9.81 | % | | | 9.99 | % | | | 9.60 | % |
| Average equity to average assets | | | 9.83 | | | | 9.84 | | | | 10.02 | | | | 9.92 | | | | 10.17 | |
| Tangible book value per share | | $ | 11.89 | | | $ | 11.62 | | | $ | 11.72 | | | $ | 11.49 | | | $ | 11.22 | |
| Total shares outstanding | | | 21,327,796 | | | | 21,258,092 | | | | 21,227,974 | | | | 21,315,881 | | | | 21,261,830 | |
| | | | | | | | | | | | | | | | | | | | | |
| Selected Balances | | | | | | | | | | | | | | | | | | | | |
| Loans | | $ | 1,670,747 | | | $ | 1,608,248 | | | $ | 1,607,354 | | | $ | 1,582,122 | | | $ | 1,538,982 | |
| Securities available for sale | | | 608,964 | | | | 610,616 | | | | 603,112 | | | | 599,755 | | | | 589,500 | |
| Total earning assets | | | 2,411,369 | | | | 2,355,703 | | | | 2,347,072 | | | | 2,264,079 | | | | 2,285,331 | |
| Total assets | | | 2,596,482 | | | | 2,548,950 | | | | 2,538,319 | | | | 2,452,696 | | | | 2,488,367 | |
| Deposits | | | 2,263,059 | | | | 2,225,719 | | | | 2,206,960 | | | | 2,128,292 | | | | 2,154,706 | |
| Interest bearing liabilities | | | 1,597,417 | | | | 1,553,249 | | | | 1,528,890 | | | | 1,497,169 | | | | 1,530,607 | |
| Shareholders' equity | | | 255,475 | | | | 248,980 | | | | 250,902 | | | | 246,923 | | | | 240,792 | |
| (1) | Presented on a fully tax equivalent basis assuming a marginal tax rate of 35% |
