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Macatawa Bank Corporation Reports Fourth Quarter and Full Year 2019 Results

HOLLAND, Mich., Jan. 23, 2020 (GLOBE NEWSWIRE) -- Macatawa Bank Corporation (MCBC) today announced its results for the fourth quarter and full year of 2019, reflecting continued strong financial performance.

  • Net income of $8.2 million in fourth quarter 2019 versus $7.0 million in fourth quarter 2018 – up 16%
  • Full year 2019 net income of $32.0 million versus $26.4 million in 2018 – up 21%
  • Strong profitability for the full year 2019 with return on average assets and average equity of 1.59% and 15.66%, respectively
  • Continued trend of increased total revenue while holding expenses flat
    • Full year 2019 total revenue up $6.1 million, or 7.9%, over 2018
    • Full year 2019 non-interest expense down $105,000 from 2018
  • Commercial loans grew by $16.0 million, or 1.5%, from year end 2018
  • Core deposit balances up by $76.6 million, or 4.6%, from year end 2018
  • Asset quality metrics remained strong
  • Redemption of $20.0 million in trust preferred securities at year end 2019

Macatawa reported net income of $8.2 million, or $0.24 per diluted share, in the fourth quarter 2019 compared to $7.0 million, or $0.21 per diluted share, in the fourth quarter 2018.  For the full year 2019, Macatawa reported net income of $32.0 million, or $0.94 per diluted share, compared to $26.4 million, or $0.78 per diluted share, for the same period in 2018.     

“Despite a stubbornly flat yield curve, we continue to deliver strong growth and increased profitability,” said Ronald L. Haan, President & CEO of the Company.  “Growth in earning assets, core deposits, and higher than anticipated mortgage revenues combined to deliver a sixteen percent increase in net income in the fourth quarter 2019 compared to the fourth quarter 2018, and a twenty one percent increase in net income for the full year 2019 compared to 2018.  Operating expenses remain well managed.  We are grateful for the continued support we receive from our expanding list of customers.”

Mr. Haan concluded, “Building a well-disciplined company that will deliver superior financial services to the communities of Western Michigan, and also provide strong and consistent financial performance remains our goal.  We achieved significant and measurable financial success during 2019, and remain well positioned for 2020 and beyond.”

Operating Results
Net interest income for the fourth quarter 2019 totaled $15.7 million, a decrease of $161,000 from the third quarter 2019 and an increase of $47,000 from the fourth quarter 2018.  Net interest margin for the fourth quarter 2019 was 3.24 percent, down 5 basis points from the third quarter 2019, and down 22 basis points from the fourth quarter 2018.  Net interest margin in the third and fourth quarters 2019 was negatively impacted by higher balances of short-term investments resulting from significant inflows of municipal and other deposit balances.  Short-term investment balances were up 59 percent in the third quarter 2019 from the second quarter 2019 and up 84% at year end 2019 compared to year end 2018.  While positive interest margin was achieved on the deposit inflows, it was lower than the Company’s overall net interest margin, thereby causing a margin decline.  The Company’s redemption of $20.0 million in trust preferred securities at December 31, 2019 will have a positive impact on net interest income and net interest margin in 2020.

Average interest earning assets for the fourth quarter 2019 increased $10.0 million from the third quarter 2019 and were up $125.1 million from the fourth quarter 2018.  Decreases in market interest rates in 2019 and the resulting impact on net interest income and net interest margin offset the effect of this growth in average interest earning assets.

Non-interest income decreased $124,000 in the fourth quarter 2019 compared to the third quarter 2019 and increased $684,000 from the fourth quarter 2018.  These changes were largely due to changes in gains on sales of mortgage loans.  Gains on sales of mortgage loans in the fourth quarter 2019 were down $127,000 compared to the third quarter 2019 and were up $406,000 from the fourth quarter 2018.  The Company originated $28.6 million in mortgage loans for sale in the fourth quarter 2019 compared to $24.6 million in the third quarter 2019 and $10.3 million in the fourth quarter 2018.  This increase in production is due to a declining mortgage rate environment as well as customer preference for loan types that are typically sold (long-term fixed rate loans).  Also positively impacting non-interest income in the fourth quarter 2019 were increases in trust and brokerage fee income.

Non-interest expense was $10.6 million for the fourth quarter 2019, compared to $11.0 million for the third quarter 2019 and $10.4 million for the fourth quarter 2018.  The largest component of non-interest expense was salaries and benefit expenses.  Salaries and benefit expenses were down $488,000 compared to the third quarter 2019 and were down $481,000 compared to the fourth quarter 2018.  The decrease compared to the third quarter 2019 and the fourth quarter 2018 was primarily due to a lower level of medical insurance costs in the fourth quarter 2019 more than offsetting the impact of higher variable based compensation from higher mortgage production volume.

Nonperforming asset expenses remained low at just $139,000 in the fourth quarter 2019.  This was an increase of $93,000 compared to the third quarter 2019 and an increase of $721,000 compared to the fourth quarter 2018 when net gains on sales of properties were realized.  There were net losses on sales of foreclosed properties totaling $45,000 in the fourth quarter 2019 while there were no net gains or losses realized in the third quarter 2019, and net gains of $657,000 realized on such sales in the fourth quarter 2018.  Furniture and equipment expenses were down $64,000 in the fourth quarter 2019 compared to the third quarter 2019 and were up $36,000 compared to the fourth quarter 2018.  The changes were due primarily to technology service contracts.  The Company incurred no FDIC assessment expense in the third and fourth quarters 2019 due to assessment credits applied by the FDIC.  Other categories of non-interest expense were relatively stable compared to the third quarter 2019 and the fourth quarter 2018. 

Federal income tax expense was $1.9 million for the fourth quarter 2019 compared to $1.9 million for the third quarter 2019 and $1.7 million for the fourth quarter 2018.  The effective tax rate was 19.2 percent for the fourth quarter 2019, compared to 18.7 percent for the third quarter 2019 and 19.8 percent for the fourth quarter 2018. 

Asset Quality
The Company’s asset quality remained strong in the fourth quarter 2019 and the Company again experienced net loan recoveries for the quarter.  No provision for loan losses was recorded in the fourth quarter 2019 or in the third quarter 2019.  The Company recorded a provision for loan losses of $850,000 in the fourth quarter 2018.  Net loan recoveries for the fourth quarter 2019 were $55,000, compared to net loan recoveries of $259,000 in the third quarter 2019 and net loan charge-offs of $776,000 in the fourth quarter 2018.  The Company has experienced net loan recoveries in nineteen of the past twenty quarters. Total loans past due on payments by 30 days or more were $405,000 at December 31, 2019, compared to $207,000 at September 30, 2019 and $877,000 at December 31, 2018.  Delinquency as a percentage of total loans was a nominal 0.03 percent at December 31, 2019. 

The allowance for loan losses of $17.2 million was 1.24 percent of total loans at December 31, 2019, compared to 1.24 percent of total loans at September 30, 2019, and 1.20 percent at December 31, 2018.  The coverage ratio of allowance for loan losses to nonperforming loans continued to be strong and significantly exceeded 1-to-1 coverage at 85-to-1 as of December 31, 2019.

At December 31, 2019, the Company's nonperforming loans were $203,000, representing 0.02 percent of total loans.  This compares to $211,000 (0.02 percent of total loans) at September 30, 2019 and $1.3 million (0.09 percent of total loans) at December 31, 2018.  Other real estate owned and repossessed assets were $2.7 million at December 31, 2019, compared to $3.1 million at September 30, 2019 and $3.4 million at December 31, 2018. Total nonperforming assets, including other real estate owned and nonperforming loans, decreased by $1.7 million, or 37 percent, from December 31, 2018 to December 31, 2019.

A break-down of non-performing loans is shown in the table below.


Dollars in 000s
  Dec 31,
2019
  Sept 30,
2019
  Jun 30,
2019
  Mar 31,
2019
  Dec 31,
2018
 
                               
Commercial Real Estate   $ 98   $ 102   $ 102   $ 213   $ 318  
Commercial and Industrial     ---     ---     ---     ---     873  
Total Commercial Loans     98     102     102     213     1,191  
Residential Mortgage Loans     105     109     191     195     112  
Consumer Loans     ---     ---     ---     1     1  
Total Non-Performing Loans   $ 203   $ 211   $ 293   $ 409   $ 1,304  
                                 

Total non-performing assets were $3.0 million, or 0.1 percent of total assets, at December 31, 2019.  A break-down of non-performing assets is shown in the table below.


Dollars in 000s
  Dec 31,
2019
  Sept 30,
2019
  Jun 30,
2019
  Mar 31,
2019
  Dec 31,
2018
 
                               
Non-Performing Loans   $ 203   $ 211   $ 293   $ 409   $ 1,304  
Other Repossessed Assets     ---     ---     ---     ---     ---  
Other Real Estate Owned     2,748     3,109     3,067     3,261     3,380  
Total Non-Performing Assets   $ 2,951   $ 3,320   $ 3,360   $ 3,670   $ 4,684  
                                 

Balance Sheet, Liquidity and Capital
Total assets were $2.07 billion at December 31, 2019, a decrease of $74.4 million from $2.14 billion at September 30, 2019 and an increase of $95.0 million from $1.98 billion at December 31, 2018.  Total loans were $1.39 billion at December 31, 2019, an increase of $8.4 million from $1.38 billion at September 30, 2019 and a decrease of $20.0 million from $1.41 billion at December 31, 2018.

Commercial loans increased by $16.0 million from December 31, 2018 to December 31, 2019, offset by decreases of $27.1 million in the residential mortgage portfolio and $8.9 million in the consumer loan portfolio.  Commercial real estate loans increased by $29.8 million while commercial and industrial loans decreased by $13.8 million during the same period. 

The composition of the commercial loan portfolio is shown in the table below:


Dollars in 000s
  Dec 31,
2019
  Sept 30,
2019
  Jun 30,
2019
  Mar 31,
2019
  Dec 31,
2018
 
                               
Construction and Development   $ 134,710   $ 117,782   $ 102,516   $ 102,133   $ 99,867  
Other Commercial Real Estate     463,748     462,686     461,427     470,667     468,840  
Commercial Loans Secured by Real Estate     598,458     580,468     563,943     572,800     568,707  
Commercial and Industrial     499,572     492,085     467,222     493,891     513,347  
Total Commercial Loans   $ 1,098,030   $ 1,072,553   $ 1,031,165   $ 1,066,691   $ 1,082,054  
                                 

Total deposits were $1.75 billion at December 31, 2019, down $66.8 million from $1.82 billion at September 30, 2019 and up $76.6 million, or 4.6 percent, from $1.68 billion at December 31, 2018.  Demand deposits were down $60.7 million in the fourth quarter 2019 compared to the third quarter 2019 and were up $20.0 million compared to the fourth quarter 2018.  Money market deposits and savings deposits were down $8.6 million from the third quarter 2019 and were up $30.9 million from the fourth quarter 2018.  Certificates of deposit were up $2.4 million in the fourth quarter 2019 compared to September 30, 2019 and were up $25.6 million compared to December 31, 2018.  The Company continues to be successful at attracting and retaining core deposit customers.  Customer deposit accounts remain insured to the highest levels available under FDIC deposit insurance.

Macatawa Bank's regulatory capital ratios at December 31, 2019 continued to be at levels comfortably above those required to be categorized as “well capitalized” under applicable regulatory capital guidelines.  As such, Macatawa Bank was categorized as "well capitalized" at December 31, 2019.

About Macatawa Bank Corporation
Macatawa Bank Corporation is the bank holding company for its wholly-owned subsidiary bank, Macatawa Bank.  Headquartered in Holland, Mich., Macatawa Bank offers a full range of banking, retail and commercial lending, wealth management and ecommerce services to individuals, businesses and governmental entities from a network of 26 full-service branches located throughout communities in Kent, Ottawa and northern Allegan counties.  The bank is recognized for its local management team and decision making, along with providing customers excellent service, a rewarding experience and superior financial products. Macatawa Bank has been recognized for the past nine consecutive years as one of “West Michigan’s 101 Best and Brightest Companies to Work For”. For more information, visit www.macatawabank.com.

CAUTIONARY STATEMENT:  This press release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy, and Macatawa Bank Corporation. Forward-looking statements are identifiable by words or phrases such as “outlook”, “plan” or “strategy”; that an event or trend “could”, “may”, “should”, “will”, “is likely”, or is “possible” or “probable” to occur or “continue”, has “begun” or “is scheduled” or “on track” or that the Company or its management “anticipates”, “believes”, “estimates”, “plans”, “forecasts”, “intends”, “predicts”, “projects”, or “expects” a particular result, or is “committed”, “confident”, “optimistic” or has an “opinion” that an event will occur, or other words or phrases such as “ongoing”, “future”, “signs”, “efforts”, “tend”, “exploring”, “appearing”, “until”, “near term”, “concern”, “going forward”, “focus”, “starting”, “initiative,” “trend” and variations of such words and similar expressions. Such statements are based upon current beliefs and expectations and involve substantial risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These statements include, among others, those related to future levels of earning assets, future composition of our loan portfolio, trends in credit quality metrics, future capital levels and capital needs, real estate valuation, future levels of repossessed and foreclosed properties and nonperforming assets, future levels of losses and costs associated with the administration and disposition of repossessed and foreclosed properties and nonperforming assets, future levels of loan charge-offs, future levels of other real estate owned, future levels of provisions for loan losses and reserve recoveries, the rate of asset dispositions, future dividends, future growth and funding sources, future cost of funds, future liquidity levels, future profitability levels, future interest rate levels, future net interest margin levels, the effects on earnings of changes in interest rates, future economic conditions, future effects of new or changed accounting standards, future loss recoveries, loan demand and loan growth and the future level of other revenue sources. Management's determination of the provision and allowance for loan losses, the appropriate carrying value of intangible assets (including deferred tax assets) and other real estate owned, and the fair value of investment securities (including whether any impairment on any investment security is temporary or other-than-temporary and the amount of any impairment) involves judgments that are inherently forward-looking. All statements with references to future time periods are forward-looking. All of the information concerning interest rate sensitivity is forward-looking. The future effect of changes in the real estate, financial and credit markets and the national and regional economy on the banking industry, generally, and Macatawa Bank Corporation, specifically, are also inherently uncertain. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions (“risk factors”) that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such forward-looking statements. Macatawa Bank Corporation does not undertake to update forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

Risk factors include, but are not limited to, the risk factors described in "Item 1A - Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2018.  These and other factors are representative of the risk factors that may emerge and could cause a difference between an ultimate actual outcome and a preceding forward-looking statement.

MACATAWA BANK CORPORATION
CONSOLIDATED FINANCIAL SUMMARY
(Unaudited)
(Dollars in thousands except per share information)
                             
            Quarterly   Twelve Months Ended
            4th Qtr   3rd Qtr   4th Qtr   December 31
EARNINGS SUMMARY             2019       2019       2018       2019       2018  
Total interest income           $ 18,435     $ 19,079     $ 18,496     $ 75,942     $ 69,037  
Total interest expense             2,760       3,243       2,868       12,455       9,411  
Net interest income             15,675       15,836       15,628       63,487       59,626  
Provision for loan losses             -       -       850       (450 )     450  
Net interest income after provision for loan losses             15,675       15,836       14,778       63,937       59,176  
                             
NON-INTEREST INCOME                            
Deposit service charges             1,147       1,139       1,135       4,415       4,377  
Net gains on mortgage loans             697       824       291       2,347       924  
Trust fees             999       920       884       3,812       3,643  
Other             2,246       2,330       2,095       9,154       8,559  
Total non-interest income             5,089       5,213       4,405       19,728       17,503  
                             
NON-INTEREST EXPENSE                            
Salaries and benefits             5,784       6,272       6,265       24,679       25,207  
Occupancy             940       966       948       3,994       3,931  
Furniture and equipment             823       887       787       3,420       3,125  
FDIC assessment             -       -       127       239       518  
Problem asset costs, including losses and (gains)             139       46       (582 )     253       69  
Other             2,957       2,838       2,852       11,639       11,479  
Total non-interest expense             10,643       11,009       10,397       44,224       44,329  
Income before income tax             10,121       10,040       8,786       39,441       32,350  
Income tax expense             1,949       1,882       1,743       7,462       5,971  
Net income           $ 8,172     $ 8,158     $ 7,043     $ 31,979     $ 26,379  
                             
Basic earnings per common share           $ 0.24     $ 0.24     $ 0.21     $ 0.94     $ 0.78  
Diluted earnings per common share           $ 0.24     $ 0.24     $ 0.21     $ 0.94     $ 0.78  
Return on average assets             1.59%       1.59%       1.47%       1.59%       1.40%  
Return on average equity             15.27%       15.69%       15.12%       15.66%       14.69%  
Net interest margin (fully taxable equivalent)             3.24%       3.29%       3.46%       3.38%       3.38%  
Efficiency ratio             51.26%       52.30%       51.90%       53.14%       57.47%  
                             
BALANCE SHEET DATA                   December 31   September 30   December 31
Assets                     2019       2019       2018  
Cash and due from banks                   $ 31,942     $ 50,870     $ 40,526  
Federal funds sold and other short-term investments                     240,508       319,566       130,758  
Debt securities available for sale                     225,249       209,895       226,986  
Debt securities held to maturity                     82,720       81,995       70,334  
Federal Home Loan Bank Stock                     11,558       11,558       11,558  
Loans held for sale                     3,294       1,317       415  
Total loans                     1,385,627       1,377,227       1,405,658  
Less allowance for loan loss                     17,200       17,145       16,876  
Net loans                     1,368,427       1,360,082       1,388,782  
Premises and equipment, net                     43,417       43,956       44,862  
Bank-owned life insurance                     42,156       41,960       41,185  
Other real estate owned                     2,748       3,109       3,380  
Other assets                     18,058       20,190       16,338  
                             
Total Assets                   $ 2,070,077     $ 2,144,498     $ 1,975,124  
                             
Liabilities and Shareholders' Equity                            
Noninterest-bearing deposits                   $ 482,499     $ 501,731     $ 485,530  
Interest-bearing deposits                     1,270,795       1,318,409       1,191,209  
Total deposits                     1,753,294       1,820,140       1,676,739  
Other borrowed funds                     60,000       60,000       60,000  
Long-term debt                     20,619       41,238       41,238  
Other liabilities                     18,695       11,335       6,294  
Total Liabilities                     1,852,608       1,932,713       1,784,271  
                             
Shareholders' equity                     217,469       211,785       190,853  
                             
Total Liabilities and Shareholders' Equity                   $ 2,070,077     $ 2,144,498     $ 1,975,124  
                             


MACATAWA BANK CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Unaudited)
(Dollars in thousands except per share information)
                             
    Quarterly   Year to Date
                             
    4th Qtr   3rd Qtr   2nd Qtr   1st Qtr   4th Qtr        
      2019       2019       2019       2019       2018       2019       2018  
EARNINGS SUMMARY                            
Net interest income   $ 15,675     $ 15,836     $ 15,955     $ 16,020     $ 15,628     $ 63,487     $ 59,626  
Provision for loan losses     -       -       (200 )     (250 )     850       (450 )     450  
Total non-interest income     5,089       5,213       5,098       4,328       4,405       19,728       17,503  
Total non-interest expense     10,643       11,009       11,334       11,238       10,397       44,224       44,329  
Federal income tax expense     1,949       1,882       1,916       1,714       1,743       7,462       5,971  
Net income   $ 8,172     $ 8,158     $ 8,003     $ 7,646     $ 7,043     $ 31,979     $ 26,379  
                             
Basic earnings per common share   $ 0.24     $ 0.24     $ 0.24     $ 0.22     $ 0.21     $ 0.94     $ 0.78  
Diluted earnings per common share   $ 0.24     $ 0.24     $ 0.24     $ 0.22     $ 0.21     $ 0.94     $ 0.78  
                             
MARKET DATA                            
Book value per common share   $ 6.38     $ 6.22     $ 6.04     $ 5.81     $ 5.61     $ 6.38     $ 5.61  
Tangible book value per common share   $ 6.38     $ 6.22     $ 6.04     $ 5.81     $ 5.61     $ 6.38     $ 5.61  
Market value per common share   $ 11.13     $ 10.39     $ 10.26     $ 9.94     $ 9.62     $ 11.13     $ 9.62  
Average basic common shares     34,080,275       34,060,796       34,042,886       34,040,380       34,031,454       34,056,200       34,018,259  
Average diluted common shares     34,080,275       34,060,796       34,042,886       34,040,380       34,031,454       34,056,200       34,018,554  
Period end common shares     34,103,542       34,061,080       34,042,331       34,044,149       34,045,411       34,103,542       34,045,411  
                             
PERFORMANCE RATIOS                            
Return on average assets     1.59%       1.59%       1.62%       1.57%       1.47%       1.59%       1.40%  
Return on average equity     15.27%       15.69%       15.94%       15.81%       15.12%       15.66%       14.69%  
Net interest margin (fully taxable equivalent)     3.24%       3.29%       3.45%       3.54%       3.46%       3.38%       3.38%  
Efficiency ratio     51.26%       52.30%       53.84%       55.23%       51.90%       53.14%       57.47%  
Full-time equivalent employees (period end)     325       327       338       332       334       325       334  
                             
ASSET QUALITY                            
Gross charge-offs   $ 33     $ 48     $ 41     $ 157     $ 1,179     $ 279     $ 1,335  
Net charge-offs/(recoveries)   $ (55 )   $ (259 )   $ (194 )   $ (266 )   $ 776     $ (774 )   $ 174  
Net charge-offs to average loans (annualized)     -0.02%       -0.08%       -0.06%       -0.08%       0.23%       -0.06%       0.01%  
Nonperforming loans   $ 203     $ 211     $ 293     $ 409     $ 1,304     $ 203     $ 1,304  
Other real estate and repossessed assets   $ 2,748     $ 3,109     $ 3,067     $ 3,261     $ 3,380     $ 2,748     $ 3,380  
Nonperforming loans to total loans     0.01%       0.02%       0.02%       0.03%       0.09%       0.01%       0.09%  
Nonperforming assets to total assets     0.14%       0.15%       0.17%       0.19%       0.24%       0.14%       0.24%  
Allowance for loan losses   $ 17,200     $ 17,145     $ 16,886     $ 16,892     $ 16,876     $ 17,200     $ 16,876  
Allowance for loan losses to total loans     1.24%       1.24%       1.26%       1.22%       1.20%       1.24%       1.20%  
Allowance for loan losses to nonperforming loans     8472.91%       8125.59%       5763.14%       4130.07%       1293.18%       8472.91%       1293.18%  
                             
CAPITAL                            
Average equity to average assets     10.42%       10.15%       10.15%       9.93%       9.71%       10.17%       9.51%  
Common equity tier 1 to risk weighted assets (Consolidated)     13.45%       13.23%       13.13%       12.55%       12.01%       13.45%       12.01%  
Tier 1 capital to average assets (Consolidated)     11.49%       12.22%       12.34%       12.22%       12.12%       11.49%       12.12%  
Total capital to risk-weighted assets (Consolidated)     15.77%       16.83%       16.78%       16.14%       15.54%       15.77%       15.54%  
Common equity tier 1 to risk weighted assets (Bank)     14.25%       15.31%       15.27%       14.66%       14.09%       14.25%       14.09%  
Tier 1 capital to average assets (Bank)     11.15%       11.88%       12.01%       11.90%       11.78%       11.15%       11.78%  
Total capital to risk-weighted assets (Bank)     15.32%       16.39%       16.36%       15.73%       15.13%       15.32%       15.13%  
Common equity to assets     10.51%       9.88%       10.40%       10.29%       9.67%       10.51%       9.67%  
Tangible common equity to assets     10.51%       9.88%       10.40%       10.29%       9.67%       10.51%       9.67%  
                             
END OF PERIOD BALANCES                            
Total portfolio loans   $ 1,385,627     $ 1,377,227     $ 1,343,512     $ 1,384,567     $ 1,405,658     $ 1,385,627     $ 1,405,658  
Earning assets     1,943,356       1,999,817       1,856,962       1,809,469       1,849,630       1,943,356       1,849,630  
Total assets     2,070,077       2,144,498       1,978,405       1,925,880       1,975,124       2,070,077       1,975,124  
Deposits     1,753,294       1,820,140       1,661,106       1,617,864       1,676,739       1,753,294       1,676,739  
Total shareholders' equity     217,469       211,785       205,519       197,966       190,853       217,469       190,853  
                             
AVERAGE BALANCES                            
Total portfolio loans   $ 1,377,051     $ 1,348,417     $ 1,367,202     $ 1,399,464     $ 1,363,548     $ 1,372,905     $ 1,332,878  
Earning assets     1,931,333       1,921,346       1,860,353       1,833,924       1,806,229       1,887,101       1,773,608  
Total assets     2,055,398       2,049,006       1,978,880       1,948,301       1,918,543       2,008,302       1,888,441  
Deposits     1,727,946       1,728,657       1,667,580       1,646,268       1,618,861       1,692,935       1,586,748  
Total shareholders' equity     214,112       208,031       200,888       193,463       186,361       204,191       179,627  

Contact:
Jon Swets, CFO
616-494-7645