GRAND RAPIDS, Mich., Oct. 20, 2009 (GLOBE NEWSWIRE) -- Mercantile Bank Corporation (Nasdaq:MBWM) ("Mercantile") reported a third quarter 2009 net loss attributable to common shares of $5.6 million compared with net income of $1.1 million for the third quarter of 2008. The net loss attributable to common shares for the 2009 third quarter was ($0.66) per diluted share, compared with $0.13 per diluted share for the year-ago third quarter. For the nine months year-to-date, Mercantile recorded a net loss attributable to common shares of $16.5 million, or ($1.94) per diluted share, compared to a net loss of $5.3 million, or ($0.62) per diluted share, for the prior-year nine month period.
Included in third quarter results was a $158,000 pretax charge relating to the final segment of Mercantile's consolidation of its mid- and eastern-Michigan banking regions. Total consolidation expense was $1.3 million ($0.86 million after-tax, or $0.10 per diluted share), recorded in the second and third quarters of 2009. In addition, Mercantile recorded a $0.9 million pretax charge ($0.62 million after-tax, or $0.07 per diluted share) in the second quarter for the industry-wide FDIC special assessment. Excluding the impact of these one-time charges, the third quarter net loss attributable to common shares was $5.5 million, or ($0.65) per diluted share, and the nine-month net loss attributable to common shares was $15.0 million, or ($1.77) per diluted share.
Third quarter performance continues to reflect the impact of increased levels of problem assets; a large quarterly loan and lease loss provision was taken to boost reserves, reflecting Mercantile's aggressive administration and disposition of its problem assets. Performance also reflects the positive steps taken to partially mitigate the impact of deteriorating asset quality, as evidenced by an improved net interest margin, higher regulatory capital ratios, increased local deposits, reduced reliance on wholesale funding, and lower overhead expenses.
Michael Price, Chairman and CEO of Mercantile Bank Corporation, commented, "In response to the sustained duration of this recession and its particularly deep impact on the State of Michigan, we continue to refine and implement a two-pronged approach to managing our bank to optimize performance under current adverse conditions. First: We have been addressing our problem assets aggressively from the start of this cycle, to contain and reduce their impact on our financial performance. This includes building an enhanced credit administration infrastructure, proactive recognition and attention to weakening loan relationships, actively managing loan workouts to improve efficiency and outcomes, and finally, working expeditiously to gain control of underlying collateral. We have been largely successful in these areas, but unfortunately, our results have been masked by the relentless deterioration in our economy and the distressed condition of our real estate markets.
"The second prong of our strategy is also critical to our present and future performance. We are pursuing continuous improvement in all activities within our control to mitigate the impact of asset quality on our financial performance. We have always paid close attention to all facets of our profitability, but we have been forced by present circumstances to reach deeper; we have a renewed commitment to cost-saving disciplines as well as a greater focus on pricing and liquidity. Our margin has been expanding over the course of the past year as we replace maturing high-rate deposits with lower-cost funds. Equally important, we have used this opportunity to reprice our loans upward to reflect current market conditions and believe we will be able to continue to do so. We also grew our local deposit base, reduced our reliance on wholesale funds, completed our branch consolidation, and reinforced our capital ratios with the sale of preferred stock in the second quarter and a reduction in total loans outstanding. As we exit this downturn, these efficiencies should position us as a stronger competitor than ever, with an enhanced reputation in our markets."
Operating Results
Total revenue for the third quarter of 2009, consisting of net interest income and noninterest income, was $15.3 million, up 12.8 percent from the $13.5 million reported for the third quarter of 2008. Net interest income was $13.6 million compared to $11.7 million for the year-ago quarter, up 15.7 percent. Year-over-year, the net interest margin improved by 55 basis points to 2.85 percent for the current quarter, more than offsetting the impact of a 6.7 percent decline in average earning assets.
Mr. Price added, "We are making good progress in lowering our cost of funds, and anticipate further improvements in coming quarters. On the asset side, the improvement in loan pricing we have achieved in this more rational banking environment has substantially offset the combined impact of higher levels of nonaccruing loans and a balance sheet shift to a higher level of short-term, lower-yielding investments, a decision we made to enhance liquidity in light of current market conditions."
Compared to the second quarter, third quarter 2009 net interest income increased $1.1 million, or 9.0 percent; the net interest margin improved 35 basis points, partially offset by a 5.6 percent decline in average earning assets. Third quarter margin improvement primarily reflects the substantial and sustained decline in the cost of funds; the asset yield remained virtually unchanged as loan portfolio pricing initiatives offset the higher level of nonaccruing loans.
Net interest income increased $4.1 million, or 12.2 percent, during the first nine months of 2009 compared to the year-ago nine-month period, primarily reflecting the impact of a 27 basis point improvement in the net interest margin. While average earning assets increased 3.2 percent during this time period, the growth reflects a shift in the balance sheet mix toward a higher level of short-term, lower-yielding investments to enhance liquidity, thereby reducing the average earning asset yield. Noninterest income remains a steady source of revenue, down slightly during the third quarter of 2009 compared to the prior-year third quarter, but up slightly during the first nine months of 2009 in comparison to the same time period in 2008.
The provision for loan and lease losses was $11.8 million for the third quarter of 2009 compared with $1.9 million for the year-ago third quarter. "We continue to aggressively manage the inherent and specific risks contained in our loan portfolio -- increasing reserves to account for changes in risk assessments on individual borrowing relationships and industries, as well as to provide for identified collateral shortfalls on impaired loans," Price noted. Since year-end 2008, Mercantile added $33.7 million to the allowance for loan and lease losses through provisions, compared to net loan and lease charge-offs totaling $27.4 million. The $6.3 million net addition year-to-date has boosted the allowance for loan and lease losses to $33.4 million. At September 30, 2009, the allowance for loan and lease losses equaled 2.07 percent of total loans and leases, compared with 1.91 percent and 1.46 percent at June 30, 2009 and year-end 2008, respectively.
Noninterest expense for the third quarter of 2009 was $12.5 million. Excluding one-time branch consolidation charges of $158,000, noninterest expense was $12.4 million, up $1.8 million, or 17.6 percent, from the third quarter of 2008. Higher costs associated with the administration and resolution of problem assets (namely, legal expenses, property tax payments and write-downs on foreclosed properties) and higher FDIC insurance premiums accounted for an increase of $2.9 million compared to the year-ago quarter. Mercantile partially offset the increased problem credit administration and FDIC costs through disciplined control of overhead expenses. Salaries and benefits, occupancy, and furniture and equipment expenses declined $0.9 million, or 12.7 percent, from the year-ago quarter.
Balance Sheet
Total assets were $2.02 billion as of September 30, 2009, down $190.7 million, or 8.6 percent, from the $2.21 billion reported at 2008 year-end. Loans and leases declined $242.7 million, or 13.1 percent, to $1.61 billion during the same nine-month period.
Approximately 75 percent of Mercantile's loan and lease portfolio is secured by real estate, including commercial real estate ("CRE") loans of $880 million and construction and land development ("C&D") loans of $201 million; these categories accounted for approximately 55 percent and 12 percent, respectively, of total loans and leases at September 30, 2009. This compares with $929 million for CRE loans and $263 million for C&D loans at year-end 2008. "We are managing both loan categories aggressively," Price commented. "In particular, residential C&D loans have declined $29 million, or 31 percent, and commercial C&D loans declined $33 million, or 20 percent, during the past nine months." CRE loans, of which 40 percent are owner-occupied and 60 percent investor-owned, have declined $49 million, or 5.2 percent, since year-end 2008.
Commercial and industrial ("C&I") loans were $395 million at September 30, 2009, down $122 million, or 23.6 percent, from year-end 2008. This portfolio segment accounted for about 24 percent of total loans and leases at September 30, 2009, down from approximately 28 percent nine months ago. "The decline in C&I loans is primarily a reflection of the slowdown in the economy," Mr. Price added. "Our clients have a reduced need to borrow due to declining sales and reduced levels of inventory.
"Local deposits have increased significantly since year-end 2008, up nearly 40 percent," added Price. "We are pleased our customers recognize the value we provide as we all work through this difficult environment. While we remain relatively aggressive with our deposit rates, our ability to attract additional local deposits also reflects several new initiatives within our deposit and lending functions, including the introduction of new deposit products that incorporate technological advances that provide improved information, convenience and timeliness."
Total deposits at September 30, 2009 were $1.45 billion, down a net $149 million, or 9.3 percent, from December 31, 2008. Local deposits increased $185 million during the first nine months of 2009, primarily in certificates of deposit and interest-bearing checking accounts. The increase in local deposits, combined with a $191 million decline in total assets, has allowed Mercantile to reduce brokered deposits by $334 million, or 29.6 percent, since year-end 2008. Local deposits now comprise approximately 45 percent of total deposits compared to about 29 percent at year-end 2008.
Asset Quality
Robert B. Kaminski, Executive Vice President and Chief Operating Officer of Mercantile Bank Corporation, addressed the persistence of asset quality issues. "As the recession drags on, the growing level of problem assets reflects strains on borrower cash flows and collateral valuation degradation. The primary pressure this quarter relates to non-owner occupied commercial real estate and C&I credit relationships. Our preferred recourse has been, and continues to be, to establish a workout plan for each of our stressed credit relationships, determine the current market value of underlying collateral, write-down impaired loans to market values while building additional reserves for others, and proceed to a speedy resolution." Nonperforming assets at September 30, 2009, were $110.8 million, or 5.5 percent of total assets, compared to $86.6 million (4.2 percent of total assets) and $47.8 million (2.2 percent of total assets) at June 30, 2009 and September 30, 2008, respectively. Approximately $43.0 million was added to nonperforming assets this past quarter, offset by $6.1 million of principal paydowns and foreclosed real estate ("OREO") and repossessed asset sales proceeds, $11.1 million of charge-offs, and $1.6 million of OREO valuation write-downs.
Of the $17.6 million of net additions to nonperforming loans and leases during the third quarter of 2009, increases were recorded in all major portfolio segments: C&D up $5.8 million; CRE up $4.6 million; C&I up $4.6 million; and residential mortgage up $2.6 million. Approximately 40 percent of nonperforming loans and leases were contractually current as of September 30, 2009. OREO totaled $19.5 million at third quarter-end, up from $13.0 million at June 30, 2009 and $5.7 million for the year-ago quarter. The net increase in OREO is not unexpected, as Mercantile continues to gain ownership of properties through the foreclosure process which includes a six-to-twelve month redemption period.
Total nonperforming CRE assets were $57.9 million as of September 30, 2009, compared with $45.5 million as of June 30, 2009. Non-owner occupied CRE assets accounted for $36.5 million (up $8.4 million, primarily as OREO), while owner-occupied CRE accounted for $21.4 million (up $4.0 million, primarily as nonaccruing loans). Year-to-date, $8.3 million of CRE loans were charged-off, of which $4.5 million occurred during the third quarter.
Nonperforming C&D assets totaled $31.5 million as of September 30, 2009, compared with $25.6 million at June 30, 2009; these consist primarily of loans on residential-related projects, divided between $21.0 million of nonperforming loans and $5.7 million of OREO. Net C&D charge-offs were $3.7 million during the third quarter and $6.5 million year-to-date.
Nonperforming C&I loans and repossessed assets totaled $14.5 million at September 30, 2009, up from $10.6 million at June 30, 2009. Net charge-offs of C&I loans were $2.2 million during the third quarter and $9.6 million year-to-date.
Nonperforming owner-occupied and rental residential loans and OREO totaled $6.8 million at September 30, 2009, up from $4.9 million at June 30, 2009. Year-to-date, $2.7 million has been charged-off.
Net loan and lease charge-offs during the third quarter of 2009 totaled $11.0 million, or an annualized 2.61 percent of average loans and leases, compared with $10.8 million, or an annualized 2.47 percent, for the second quarter of 2009. For the nine-month periods, net loan and lease charge-offs were $27.4 million for 2009, or an annualized 2.10 percent of average loans and leases, compared to $13.5 million for 2008, or an annualized 0.99 percent.
In the current quarter, approximately 33 percent, or $3.8 million, of loans and leases charged-off were eliminations of specific reserves established in prior periods; this compares with 53 percent, or $5.7 million, for the second quarter of 2009. Excluding charges associated with the elimination of specific reserves, net loan and lease charge-offs for the third quarter of 2009 were an annualized 1.71 percent of average loans and leases.
Capital Position
Shareholders' equity totaled $177.3 million at September 30, 2009, an increase of $5.9 million, or 3.5 percent, from September 30, 2008. The Bank remains "well-capitalized", with a total risk-based capital ratio of 11.7 percent as of September 30, 2009. The Bank's total regulatory capital as of September 30, 2009 was $215.3 million, approximately $32.0 million in excess of the minimum 10 percent required to be categorized as "well-capitalized". Mercantile's total shares outstanding at third quarter-end were 8,590,946.
Mr. Price concluded, "A primary objective throughout this difficult period has been to improve and maintain sound capital and liquidity positions while continuing to serve the needs of our valued customers. Our capital ratios are improving despite our aggressive administration of problem assets. Liquidity, as reflected in higher levels of short-term investments and local deposits relative to our contracting asset size, has also been expanding."
About Mercantile Bank Corporation
Based in Grand Rapids, Michigan, Mercantile Bank Corporation is the bank holding company for Mercantile Bank of Michigan. Founded in 1997 to provide banking services to businesses, individuals, and governmental units, the Bank differentiates itself on the basis of service quality and its banking staff expertise. Mercantile has seven full-service banking offices in Grand Rapids, Holland and Lansing, Michigan. 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; 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.
MERCANTILE BANK CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
Quarterly
----------------------------------------------------------
2009 2009 2009 2008 2008
(dollars in 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr
thousands ---------- ---------- ---------- ---------- ----------
except per
share data)
EARNINGS
Net
interest
income $ 13,567 12,450 11,805 12,505 11,728
Provision
for loan
and lease
losses $ 11,800 11,500 10,400 4,000 1,900
Noninterest
income $ 1,710 1,863 2,032 1,818 1,817
Noninterest
expense $ 12,517 12,364 10,772 10,506 10,513
Net income
(loss) $ (5,286) (6,225) (4,489) 313 1,079
Net income
(loss)
common
share-
holders $ (5,606) (6,388) (4,489) 313 1,079
Basic
earnings
(loss)
per share $ (0.66) (0.75) (0.53) 0.04 0.13
Diluted
earnings
(loss)
per share $ (0.66) (0.75) (0.53) 0.04 0.13
Average
basic
shares
out-
standing 8,492,946 8,487,747 8,481,265 8,476,119 8,529,514
Average
diluted
shares
out-
standing 8,492,946 8,487,747 8,481,265 8,532,153 8,529,514
PERFORMANCE
RATIOS
Return on
average
assets (1.09%) (1.19%) (0.81%) 0.06% 0.20%
Return on
average
common
equity (12.26%) (14.54%) (10.50%) 0.72% 2.53%
Net
interest
margin
(fully
tax-equi-
valent) 2.85% 2.50% 2.28% 2.40% 2.30%
Efficiency
ratio 81.93% 86.38% 77.85% 73.35% 77.62%
Full-time
equivalent
employees 265 278 298 303 307
CAPITAL
Period-
ending
equity to
assets 8.79% 8.77% 7.56% 7.90% 7.76%
Tier 1
leverage
capital
ratio 9.70% 9.46% 8.49% 9.17% 9.34%
Tier 1
risk-
based
capital
ratio 10.72% 10.48% 9.38% 9.68% 9.61%
Total
risk-
based
capital
ratio 11.98% 11.74% 10.63% 10.93% 10.86%
Book value
per
common
share $ 18.19 18.71 19.70 20.29 20.08
Cash
dividend
per
common
share $ 0.01 0.01 0.04 0.04 0.04
ASSET
QUALITY
Gross loan
charge-
offs $ 11,545 11,111 5,740 6,564 4,462
Net loan
charge-
offs $ 10,963 10,779 5,624 6,403 4,271
Net loan
charge-
offs to
average
loans 2.61% 2.47% 1.25% 1.37% 0.91%
Allowance
for loan
and lease
losses $ 33,443 32,605 31,884 27,108 29,511
Allowance
for
losses
to total
loans 2.07% 1.91% 1.79% 1.46% 1.58%
Non-
performing
loans $ 91,242 73,671 74,369 49,303 42,047
Other real
estate
and re-
possessed
assets $ 19,523 12,960 9,378 8,118 5,743
Non-
performing
assets to
total
assets 5.49% 4.18% 3.74% 2.60% 2.17%
END OF
PERIOD
BALANCES
Loans and
leases $1,614,226 1,708,524 1,778,057 1,856,915 1,870,799
Total
earning
assets
(before
allowance)$1,904,944 1,968,436 2,140,804 2,108,752 2,099,408
Total
assets $2,017,350 2,071,372 2,239,764 2,208,010 2,207,359
Deposits $1,450,968 1,478,633 1,651,283 1,599,575 1,575,713
Share-
holders'
equity $ 177,291 181,692 169,345 174,372 171,348
AVERAGE
BALANCES
Loans and
leases $1,663,510 1,749,919 1,821,428 1,858,701 1,852,848
Total
earning
assets
(before
allowance)$1,935,637 2,050,071 2,155,278 2,116,540 2,073,787
Total
assets $2,042,355 2,146,593 2,254,307 2,214,412 2,172,859
Deposits $1,469,264 1,558,206 1,658,323 1,588,615 1,550,544
Share-
holders'
equity $ 181,400 176,189 173,414 172,374 169,241
Year-To-Date
----------------------
(dollars in thousands except per share data) 2009 2008
----------- ---------
EARNINGS
Net interest income $ 37,822 33,703
Provision for loan and lease losses $ 33,700 17,200
Noninterest income $ 5,605 5,465
Noninterest expense $ 35,653 31,619
Net income (loss) $ (16,000) (5,271)
Net income (loss) common shareholders $ (16,483) (5,271)
Basic earnings (loss) per share $ (1.94) (0.62)
Diluted earnings (loss) per share $ (1.94) (0.62)
Average basic shares outstanding $8,487,362 8,468,951
Average diluted shares outstanding $8,487,362 8,468,951
PERFORMANCE RATIOS
Return on average assets (1.03%) (0.33%)
Return on average common equity (12.45%) (4.06%)
Net interest margin (fully tax-equivalent) 2.53% 2.26%
Efficiency ratio 82.10% 80.73%
Full-time equivalent employees 265 307
CAPITAL
Period-ending equity to assets 8.79% 7.76%
Tier 1 leverage capital ratio 9.70% 9.34%
Tier 1 risk-based capital ratio 10.72% 9.61%
Total risk-based capital ratio 11.98% 10.86%
Book value per common share $ 18.19 20.08
Cash dividend per common share $ 0.06 0.27
ASSET QUALITY
Gross loan charge-offs $ 28,396 14,030
Net loan charge-offs $ 27,366 13,503
Net loan charge-offs to average loans 2.10% 0.99%
Allowance for loan and lease losses $ 33,443 29,511
Allowance for losses to total loans 2.07% 1.58%
Nonperforming loans $ 91,242 42,047
Other real estate and repossessed assets $ 19,523 5,743
Nonperforming assets to total assets 5.49% 2.17%
END OF PERIOD BALANCES
Loans and leases $1,614,226 1,870,799
Total earning assets (before allowance) $1,904,944 2,099,408
Total assets $2,017,350 2,207,359
Deposits $1,450,968 1,575,713
Shareholders' equity $ 177,291 171,348
AVERAGE BALANCES
Loans and leases $1,744,374 1,819,944
Total earning assets (before allowance) $2,046,191 2,039,622
Total assets $2,146,975 2,138,152
Deposits $1,561,239 1,553,636
Shareholders' equity $ 177,030 172,912
MERCANTILE BANK CORPORATION
CONSOLIDATED REPORTS OF INCOME
THREE MONTHS THREE MONTHS NINE MONTHS NINE MONTHS
ENDED ENDED ENDED ENDED
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2009 2008 2009 2008
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Interest income
Loans and leases,
including fees $23,185,000 $27,161,000 $ 72,450,000 $82,707,000
Investment
securities 2,685,000 2,641,000 8,205,000 8,067,000
Federal funds
sold 22,000 40,000 108,000 157,000
Short term
investments 1,000 1,000 17,000 6,000
----------- ----------- ------------ -----------
Total interest
income 25,893,000 29,843,000 80,780,000 90,937,000
Interest expense
Deposits 9,357,000 14,180,000 33,419,000 46,144,000
Short term
borrowings 471,000 483,000 1,385,000 1,506,000
Federal Home
Loan Bank
advances 2,113,000 2,839,000 6,860,000 7,834,000
Long term
borrowings 385,000 613,000 1,294,000 1,750,000
----------- ----------- ------------ -----------
Total interest
expense 12,326,000 18,115,000 42,958,000 57,234,000
----------- ----------- ------------ -----------
Net interest
income 13,567,000 11,728,000 37,822,000 33,703,000
Provision for
loan and lease
losses 11,800,000 1,900,000 33,700,000 17,200,000
----------- ----------- ------------ -----------
Net interest
income after
provision for
loan and lease
losses 1,767,000 9,828,000 4,122,000 16,503,000
Noninterest income
Service charges
on accounts 488,000 488,000 1,500,000 1,472,000
Other income 1,222,000 1,329,000 4,105,000 3,993,000
----------- ----------- ------------ -----------
Total
noninterest
income 1,710,000 1,817,000 5,605,000 5,465,000
Noninterest
expense
Salaries and
benefits 4,798,000 5,584,000 15,597,000 17,031,000
Occupancy 855,000 967,000 2,659,000 2,899,000
Furniture and
equipment 486,000 482,000 1,419,000 1,502,000
Nonperforming
asset costs 2,903,000 804,000 5,005,000 2,346,000
FDIC insurance
costs 1,220,000 447,000 3,650,000 1,040,000
Branch
consolidation
costs 158,000 0 1,308,000 0
Other expense 2,097,000 2,229,000 6,015,000 6,801,000
----------- ----------- ------------ -----------
Total
noninterest
expense 12,517,000 10,513,000 35,653,000 31,619,000
----------- ----------- ------------ -----------
Income (loss)
before federal
income tax
expense
(benefit) (9,040,000) 1,132,000 (25,926,000) (9,651,000)
Federal income tax
expense (benefit) (3,754,000) 53,000 (9,926,000) (4,380,000)
----------- ----------- ------------ -----------
Net income (loss) (5,286,000) 1,079,000 (16,000,000) (5,271,000)
Preferred stock
dividends and
accretion 320,000 0 483,000 0
----------- ----------- ------------ -----------
Net income
(loss)
available
to common
shareholders $(5,606,000) $ 1,079,000 $(16,483,000) $(5,271,000)
----------- ----------- ------------ -----------
Basic earnings
(loss) per share ($0.66) $0.13 ($1.94) ($0.62)
Diluted earnings
(loss) per share ($0.66) $0.13 ($1.94) ($0.62)
Average
basic shares
outstanding 8,492,946 8,529,514 8,487,362 8,468,951
Average
diluted shares
outstanding 8,492,946 8,529,514 8,487,362 8,468,951
MERCANTILE BANK CORPORATION
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30,
2009 2008 2008
---- ---- ----
(Unaudited) (Audited) (Unaudited)
ASSETS
Cash and due
from banks $ 14,445,000 $ 16,754,000 $ 25,694,000
Short term
investments 1,804,000 100,000 87,000
Federal funds sold 50,426,000 8,950,000 4,820,000
-------------- -------------- --------------
Total cash and cash
equivalents 66,675,000 25,804,000 30,601,000
Securities available
for sale 160,880,000 162,669,000 144,019,000
Securities held to
maturity 61,927,000 64,437,000 64,002,000
Federal Home Loan
Bank stock 15,681,000 15,681,000 15,681,000
Loans and leases 1,614,226,000 1,856,915,000 1,870,799,000
Allowance for loan
and lease losses (33,443,000) (27,108,000) (29,511,000)
-------------- -------------- --------------
Loans and leases,
net 1,580,783,000 1,829,807,000 1,841,288,000
Premises and
equipment, net 30,247,000 32,334,000 32,958,000
Bank owned life
insurance policies 44,490,000 42,462,000 41,459,000
Accrued interest
receivable 8,069,000 8,513,000 9,044,000
Other assets 48,598,000 26,303,000 28,307,000
-------------- -------------- --------------
Total assets $2,017,350,000 $2,208,010,000 $2,207,359,000
-------------- -------------- --------------
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing $ 108,509,000 $ 110,712,000 $ 109,154,000
Interest-bearing 1,342,459,000 1,488,863,000 1,466,559,000
-------------- -------------- --------------
Total deposits 1,450,968,000 1,599,575,000 1,575,713,000
Securities sold under
agreements to
repurchase 102,847,000 94,413,000 105,986,000
Federal Home Loan
Bank advances 225,000,000 270,000,000 285,000,000
Subordinated
debentures 32,990,000 32,990,000 32,990,000
Other borrowed money 16,867,000 19,528,000 19,393,000
Accrued interest and
other liabilities 11,387,000 17,132,000 16,929,000
-------------- -------------- --------------
Total liabilities 1,840,059,000 2,033,638,000 2,036,011,000
SHAREHOLDERS' EQUITY
Preferred stock, net
of discount 19,782,000 0 0
Common stock 173,500,000 172,353,000 172,480,000
Retained earnings
(deficit) (17,764,000) (1,281,000) (1,593,000)
Accumulated other
comprehensive income 1,773,000 3,300,000 461,000
-------------- -------------- --------------
Total shareholders'
equity 177,291,000 174,372,000 171,348,000
-------------- -------------- --------------
Total liabilities
and shareholders'
equity $2,017,350,000 $2,208,010,000 $2,207,359,000
-------------- -------------- --------------