Exhibit 99.1

Mercantile Bank Corporation Reports Third Quarter 2020 Results

Continued strength in mortgage banking income and asset quality metrics highlight quarter

GRAND RAPIDS, Mich., October 20, 2020 – Mercantile Bank Corporation (NASDAQ: MBWM) ("Mercantile") reported net income of $10.7 million, or $0.66 per diluted share, for the third quarter of 2020, compared with net income of $12.6 million, or $0.77 per diluted share, for the respective prior-year period. Net income during the first nine months of 2020 totaled $30.1 million, or $1.85 per diluted share, compared to $36.1 million, or $2.20 per diluted share, during the first nine months of 2019.

“In light of the challenging operating environment created by the ongoing COVID-19 pandemic, we are pleased with our overall financial performance during the third quarter of 2020,” said Robert B. Kaminski, Jr., President and Chief Executive Officer of Mercantile. “We have implemented strategic initiatives to address the identifiable impacts of the pandemic, and we will continue to focus on appropriately planning for potential future risks posed by it.”

Third quarter highlights include:

● Strong capital position

● Continued solid asset quality metrics

● Ongoing strength in commercial loan and residential mortgage loan pipelines

● Substantial increase in mortgage banking income and growth in other key fee income categories

● Controlled overhead costs

Operating Results

Total revenue, which consists of net interest income and noninterest income, was $42.8 million during the third quarter of 2020, up $4.5 million, or 11.8 percent, from the prior-year third quarter. Net interest income during the third quarter of 2020 was $29.5 million, down $2.1 million, or 6.6 percent, from the third quarter of 2019, reflecting a decreased net interest margin, which more than offset the positive impact of earning asset growth. Noninterest income totaled $13.3 million during the third quarter of 2020, up $6.6 million from the respective 2019 period, mainly due to increased mortgage banking income.

The net interest margin was 2.86 percent in the third quarter of 2020, compared to 3.71 percent in the third quarter of 2019. The yield on average earning assets was 3.45 percent during the third quarter of 2020, down from 4.73 percent during the prior-year third quarter, mainly due to a decreased yield on commercial loans, which equaled 4.06 percent in the current-year third quarter compared to 5.15 percent in the respective 2019 period. The decreased yield on commercial loans primarily reflected reduced interest rates on variable-rate commercial loans resulting from the Federal Open Market Committee significantly lowering the targeted federal funds rate by a total of 225 basis points during the second half of 2019 and first three months of 2020. A significant volume of excess on-balance sheet liquidity consisting of low-yielding deposits with the Federal Reserve Bank of Chicago and a correspondent bank negatively impacted the yield on average earning assets during the third quarter of 2020. The excess funds are mainly a product of federal government stimulus programs as well as lower business and consumer investing and spending. A lower yield on interest-earning deposits, reflecting the decreasing interest rate environment, also contributed to the reduced yield on average earning assets.

The cost of funds declined from 1.02 percent during the third quarter of 2019 to 0.59 percent during the current-year third quarter, primarily due to lower rates paid on local deposit accounts and borrowings, reflecting the declining interest rate environment. A change in funding mix, consisting of an increase in lower-costing non-time deposits as a percentage of total funding sources, also contributed to the decrease in the cost of funds.

Mercantile recorded provision expense of $3.2 million during the third quarter of 2020, compared to $7.6 million during the second quarter of 2020 and $0.7 million during the third quarter of 2019. The provision expense recorded during the current-year third quarter was primarily comprised of increased allocations associated with the downgrading of certain non-impaired commercial loan relationships, while the provision expense recorded during the second quarter of 2020 mainly consisted of an allocation associated with the newly-created COVID-19 pandemic environmental factor (“COVID-19 factor”) and an increased allocation related to the existing economic conditions environmental factor. The COVID-19 factor was added to address the unique challenges and economic uncertainty resulting from the pandemic and its potential impact on the collectability of the loan portfolio. The provision expense recorded during the third quarter of 2019 mainly reflected ongoing net loan growth.

Noninterest income during the third quarter of 2020 was $13.3 million, representing an increase of $6.6 million, or 99.3 percent, from the $6.7 million recorded during the third quarter of 2019. The higher level of noninterest income primarily reflected increased mortgage banking income stemming from a substantial upturn in refinance activity spurred by a decrease in residential mortgage loan interest rates, an increase in purchase activity, and the ongoing success of strategic initiatives that were implemented to boost market share. Growth in credit and debit card income and payroll processing fees also contributed to the increased level of noninterest income.

Noninterest expense totaled $26.4 million during the third quarter of 2020, up $4.4 million, or 20.0 percent, from the prior-year third quarter. The higher level of expense primarily resulted from increased compensation costs, mainly reflecting higher residential mortgage loan originator commissions and related incentives and an increased bonus accrual. The higher level of commissions and associated incentives primarily depicted the significant increase in residential mortgage loan originations during the third quarter of 2020, which were up nearly 79 percent compared to the respective 2019 period.

Mr. Kaminski commented, “The continuing success of strategic initiatives that were implemented to increase market penetration and enhance revenue, combined with strong residential mortgage loan production levels, allowed us to achieve another record breaking level of mortgage banking income during the third quarter of 2020. Our residential mortgage lending team has put forth a tremendous effort to ensure the entire loan origination process, from the receipt of an application to closing, is completed in an efficient manner, often providing us with a competitive advantage. We were pleased with the growth in service charges on accounts and credit and debit card income during the third quarter of 2020 compared to the linked quarter, primarily reflecting the relaxation of certain restrictions that were put in place as a result of the COVID-19 pandemic. Controlling overhead costs remains an integral component of growth initiatives, and we will continue our efforts to ascertain opportunities to function more efficiently.”

Balance Sheet

As of September 30, 2020, total assets were $4.42 billion, up $788 million, or 21.7 percent, from December 31, 2019. Total loans increased $494 million during the first nine months of 2020, primarily reflecting Paycheck Protection Program loan originations of $555 million during the second and third quarters. Commercial lines of credit remained relatively steady during the third quarter of 2020 after having declined $109 million during the second quarter of 2020 largely due to the impacts of the COVID-19 pandemic environment and federal government stimulus programs. As of September 30, 2020, unfunded commitments on commercial construction and development loans totaled approximately $99 million, which are expected to be largely funded over the next 12 to 18 months. Interest-earning deposits increased $315 million during the first nine months of 2020, mainly resulting from growth in certain local deposit account categories and sweep accounts.

Ray Reitsma, President of Mercantile Bank of Michigan, noted, “We are very pleased that our asset quality metrics remained solid throughout the third quarter of 2020, as we continue to closely monitor and evaluate the impact of the COVID-19 pandemic on the performance of our loan portfolio. Our ongoing focus on sound credit underwriting has served us well during this period of uncertainty and weakened economic conditions. Past due loan and nonperforming asset levels continue to be low, and a vast majority of commercial and retail loan customers that were granted loan payment deferrals under internally developed programs have reverted back to making full contractual loan payments. As part of our internal loan review program and reflective of our desire to identify potential loan problems in a timely manner, certain non-impaired commercial loan relationships were downgraded during the third quarter to bring the loan risk ratings in sync with the current economic environment and the borrowers’ financial conditions, resulting in a substantial portion of the provision expense recorded during the quarter.”

Mr. Reitsma added, “Although we continued to assist customers in obtaining funds under the Paycheck Protection Program and began helping loan recipients gather and submit required information to the Small Business Administration for a loan forgiveness determination during the third quarter of 2020, we remained focused on meeting the traditional credit needs of our existing clients and identifying potential new customer relationships. We are pleased with the level of net commercial loan growth achieved during the third quarter, and based on the strength of our current pipeline, we expect to fund additional commercial loans in future periods.”

Excluding the impact of Paycheck Protection Program loan originations, commercial and industrial loans and owner-occupied commercial real estate loans together represented approximately 55 percent of total commercial loans as of September 30, 2020, a level that has remained relatively consistent and in line with internal expectations.

Total deposits at September 30, 2020, were $3.37 billion, up $682 million, or 25.3 percent, from December 31, 2019. Local deposits were up $749 million during the first nine months of 2020, while brokered deposits were down $67.5 million during the same time period. The growth in local deposits mainly reflected Paycheck Protection Program loan proceeds being deposited into customers’ accounts at the time the loans were originated and remaining on deposit as of September 30, 2020, along with federal government stimulus payments and reduced business and consumer investing and spending. Wholesale funds were $460 million, or approximately 12 percent of total funds, as of September 30, 2020, compared to $487 million, or approximately 15 percent of total funds, as of December 31, 2019.

Asset Quality

Nonperforming assets at September 30, 2020, were $4.7 million, or 0.1 percent of total assets, compared to $2.7 million, or 0.1 percent of total assets, at December 31, 2019, and $2.9 million, or 0.1 percent of total assets, at September 30, 2019. During the third quarter of 2020, loan charge-offs totaled $0.1 million, while recoveries of prior-period loan charge-offs equaled $0.2 million, providing for net loan recoveries of $0.1 million, or an annualized 0.02 percent of average total loans.

Capital Position

Shareholders’ equity totaled $432 million as of September 30, 2020, an increase of $15.3 million from year-end 2019. The Bank’s capital position remains above “well-capitalized” with a total risk-based capital ratio of 13.5 percent as of September 30, 2020, compared to 13.0 percent at December 31, 2019. At September 30, 2020, the Bank had approximately $116 million in excess of the 10.0 percent minimum regulatory threshold required to be considered a “well-capitalized” institution. Mercantile reported 16,243,124 total shares outstanding at September 30, 2020.

As part of a $20 million common stock repurchase program announced in May 2019 and instituted in conjunction with the completion of its existing program that was introduced in January 2015 and later expanded in April 2016, Mercantile repurchased approximately 222,000 shares for $6.3 million, or a weighted average all-in cost per share of $28.25, during the first quarter of 2020; no shares were repurchased during the second and third quarters of 2020. Mercantile has elected to temporarily cease stock repurchases to preserve capital for lending and other purposes while management assesses the potential impacts of the COVID-19 pandemic. Management has the ability to reinstate the buyback program as circumstances warrant.

Mr. Kaminski concluded, “As part of our COVID-19 pandemic response plan, we have continued to utilize information distributed by government agencies and health officials as a basis for pandemic-related actions designed to provide clients with needed banking services while protecting them and our employees from the spread of the coronavirus to the fullest extent possible. We will continue to closely monitor new pandemic-related developments and revise the response plan as necessary. We were pleased to announce earlier today that our Board of Directors declared a regular quarterly cash dividend. Our sustained financial strength has allowed us to continue the cash dividend program and provide our shareholders with a cash return on their investments despite the uncertainty stemming from the pandemic and associated deterioration in economic conditions.”

Investor Presentation

Mercantile has prepared presentation materials (the “Conference Call & Webcast Presentation”) that management intends to use during its previously announced third quarter 2020 conference call on Tuesday, October 20, 2020, at 10:00 a.m. Eastern Time, and from time to time thereafter in presentations about the Company’s operations and performance. The Investor Presentation also contains more detailed information relating to Mercantile’s COVID-19 pandemic response plan. These materials have been furnished to the U.S. Securities and Exchange Commission concurrently with this press release, and are also available on Mercantile’s website at www.mercbank.com.

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 $4.4 billion and operates 40 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 may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such comments 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, including the significant disruption to financial market and other economic activity caused by the outbreak of COVID-19; 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. President & CEO 616-726-1502 rkaminski@mercbank.com Charles Christmas Executive Vice President & CFO 616-726-1202 cchristmas@mercbank.com

Mercantile Bank Corporation

Third Quarter 2020 Results

MERCANTILE BANK CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	SEPTEMBER 30,			DECEMBER 31,			SEPTEMBER 30,
	2020			2019			2019
ASSETS
Cash and due from banks	$	59,283,000		$	53,262,000		$	84,275,000
Interest-earning deposits		495,308,000			180,469,000			144,263,000
Total cash and cash equivalents		554,591,000			233,731,000			228,538,000
Securities available for sale		312,424,000			334,655,000			345,533,000
Federal Home Loan Bank stock		18,002,000			18,002,000			18,002,000
Loans		3,350,544,000			2,856,667,000			2,933,013,000
Allowance for loan losses		(35,572,000	)		(23,889,000	)		(24,414,000	)
Loans, net		3,314,972,000			2,832,778,000			2,908,599,000
Premises and equipment, net		60,446,000			57,327,000			54,585,000
Bank owned life insurance		71,170,000			70,297,000			67,993,000
Goodwill		49,473,000			49,473,000			49,473,000
Core deposit intangible, net		2,754,000			3,840,000			4,237,000
Other assets		36,778,000			32,812,000			33,420,000
Total assets	$	4,420,610,000		$	3,632,915,000		$	3,710,380,000
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing	$	1,449,879,000		$	924,916,000		$	967,189,000
Interest-bearing		1,922,155,000			1,765,468,000			1,799,902,000
Total deposits		3,372,034,000			2,690,384,000			2,767,091,000
Securities sold under agreements to repurchase		157,017,000			102,675,000			103,990,000
Federal Home Loan Bank advances		394,000,000			354,000,000			364,000,000
Subordinated debentures		47,392,000			46,881,000			46,710,000
Accrued interest and other liabilities		18,267,000			22,414,000			21,389,000
Total liabilities		3,988,710,000			3,216,354,000			3,303,180,000
SHAREHOLDERS' EQUITY
Common stock		301,896,000			305,035,000			304,065,000
Retained earnings		124,451,000			107,831,000			98,876,000
Accumulated other comprehensive income/(loss)		5,553,000			3,695,000			4,259,000
Total shareholders' equity		431,900,000			416,561,000			407,200,000
Total liabilities and shareholders' equity	$	4,420,610,000		$	3,632,915,000		$	3,710,380,000

Mercantile Bank Corporation

Third Quarter 2020 Results

MERCANTILE BANK CORPORATION

CONSOLIDATED REPORTS OF INCOME

(Unaudited)

	THREE MONTHS ENDED		THREE MONTHS ENDED		NINE MONTHS ENDED		NINE MONTHS ENDED
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
INTEREST INCOME
Loans, including fees	$	33,664,000	$	37,005,000	$	101,428,000	$	109,559,000
Investment securities		1,788,000		2,660,000		8,554,000		7,587,000
Other interest-earning assets		142,000		651,000		711,000		1,627,000
Total interest income		35,594,000		40,316,000		110,693,000		118,773,000
INTEREST EXPENSE
Deposits		3,466,000		5,573,000		11,808,000		15,906,000
Short-term borrowings		38,000		71,000		132,000		244,000
Federal Home Loan Bank advances		2,072,000		2,257,000		6,499,000		6,751,000
Other borrowed money		509,000		810,000		1,857,000		2,506,000
Total interest expense		6,085,000		8,711,000		20,296,000		25,407,000
Net interest income		29,509,000		31,605,000		90,397,000		93,366,000
Provision for loan losses		3,200,000		700,000		11,550,000		2,450,000
Net interest income after provision for loan losses		26,309,000		30,905,000		78,847,000		90,916,000
NONINTEREST INCOME
Service charges on accounts		1,135,000		1,185,000		3,401,000		3,406,000
Mortgage banking income		9,479,000		2,889,000		19,746,000		5,291,000
Credit and debit card income		1,636,000		1,547,000		4,371,000		4,397,000
Payroll services		399,000		367,000		1,346,000		1,227,000
Earnings on bank owned life insurance		290,000		330,000		933,000		3,567,000
Other income		368,000		358,000		1,042,000		1,755,000
Total noninterest income		13,307,000		6,676,000		30,839,000		19,643,000
NONINTEREST EXPENSE
Salaries and benefits		16,734,000		13,680,000		44,388,000		39,982,000
Occupancy		2,023,000		1,697,000		5,944,000		5,089,000
Furniture and equipment		871,000		629,000		2,500,000		1,885,000
Data processing costs		2,676,000		2,342,000		7,793,000		6,854,000
Other expense		4,119,000		3,679,000		11,954,000		12,134,000
Total noninterest expense		26,423,000		22,027,000		72,579,000		65,944,000
Income before federal income tax expense		13,193,000		15,554,000		37,107,000		44,615,000
Federal income tax expense		2,507,000		2,954,000		7,051,000		8,476,000
Net Income	$	10,686,000	$	12,600,000	$	30,056,000	$	36,139,000
Basic earnings per share	$	0.66	$	0.77	$	1.85	$	2.20
Diluted earnings per share	$	0.66	$	0.77	$	1.85	$	2.20
Average basic shares outstanding		16,233,196		16,390,203		16,265,208		16,415,843
Average diluted shares outstanding		16,233,666		16,393,078		16,265,986		16,420,845

Mercantile Bank Corporation

Third Quarter 2020 Results

MERCANTILE BANK CORPORATION

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

	Quarterly															Year-To-Date
(dollars in thousands except per share data)	2020			2020			2020			2019			2019
	3rd Qtr			2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2020			2019
EARNINGS
Net interest income	$	29,509			30,571			30,317			31,168			31,605			90,397			93,366
Provision for loan losses	$	3,200			7,600			750			(700	)		700			11,550			2,450
Noninterest income	$	13,307			10,984			6,550			7,312			6,676			30,839			19,643
Noninterest expense	$	26,423			23,216			22,940			23,335			22,027			72,579			65,944
Net income before federal income tax expense	$	13,193			10,739			13,177			15,845			15,554			37,107			44,615
Net income	$	10,686			8,698			10,673			13,317			12,600			30,056			36,139
Basic earnings per share	$	0.66			0.54			0.65			0.81			0.77			1.85			2.20
Diluted earnings per share	$	0.66			0.54			0.65			0.81			0.77			1.85			2.20
Average basic shares outstanding		16,233,196			16,212,500			16,350,281			16,373,458			16,390,203			16,265,208			16,415,843
Average diluted shares outstanding		16,233,666			16,213,264			16,351,559			16,375,740			16,393,078			16,265,986			16,420,845
PERFORMANCE RATIOS
Return on average assets		0.98	%		0.85	%		1.19	%		1.45	%		1.38	%		0.99	%		1.37	%
Return on average equity		9.86	%		8.26	%		10.20	%		12.87	%		12.39	%		9.44	%		12.40	%
Net interest margin (fully tax-equivalent)		2.86	%		3.17	%		3.63	%		3.63	%		3.71	%		3.19	%		3.79	%
Efficiency ratio		61.71	%		55.87	%		62.22	%		60.64	%		57.54	%		59.87	%		58.40	%
Full-time equivalent employees		618			637			626			619			624			618			624
YIELD ON ASSETS / COST OF FUNDS
Yield on loans		4.03	%		4.18	%		4.69	%		5.01	%		5.06	%		4.28	%		5.15	%
Yield on securities		2.26	%		3.37	%		4.73	%		2.90	%		2.99	%		3.47	%		2.89	%
Yield on other interest-earning assets		0.12	%		0.15	%		1.22	%		1.65	%		2.15	%		0.32	%		2.32	%
Yield on total earning assets		3.45	%		3.85	%		4.54	%		4.61	%		4.73	%		3.91	%		4.82	%
Yield on total assets		3.25	%		3.62	%		4.23	%		4.31	%		4.42	%		3.67	%		4.50	%
Cost of deposits		0.41	%		0.48	%		0.70	%		0.79	%		0.83	%		0.52	%		0.82	%
Cost of borrowed funds		1.78	%		1.91	%		2.31	%		2.36	%		2.35	%		1.98	%		2.39	%
Cost of interest-bearing liabilities		0.99	%		1.11	%		1.36	%		1.47	%		1.52	%		1.15	%		1.52	%
Cost of funds (total earning assets)		0.59	%		0.68	%		0.91	%		0.98	%		1.02	%		0.72	%		1.03	%
Cost of funds (total assets)		0.56	%		0.64	%		0.85	%		0.91	%		0.95	%		0.67	%		0.96	%
PURCHASE ACCOUNTING ADJUSTMENTS
Loan portfolio - increase interest income	$	332			169			285			316			327			786			1,107
Trust preferred - increase interest expense	$	171			171			171			171			171			513			513
Core deposit intangible - increase overhead	$	318			371			397			397			397			1,086			1,324
MORTGAGE BANKING ACTIVITY
Total mortgage loans originated	$	237,195			275,486			132,859			110,611			132,852			645,540			257,989
Purchase mortgage loans originated	$	93,068			58,015			46,538			49,407			61,839			197,621			133,716
Refinance mortgage loans originated	$	144,127			217,471			86,321			61,204			71,013			447,919			124,273
Mortgage loans originated with intent to sell	$	191,318			225,665			95,327			81,590			104,890			512,310			175,788
Income on sale of mortgage loans	$	10,199			7,760			2,086			3,062			2,886			20,045			5,003
CAPITAL
Tangible equity to tangible assets		8.69	%		8.74	%		10.14	%		10.15	%		9.67	%		8.69	%		9.67	%
Tier 1 leverage capital ratio		9.80	%		10.21	%		11.47	%		11.28	%		11.08	%		9.80	%		11.08	%
Common equity risk-based capital ratio		11.37	%		11.34	%		10.92	%		11.00	%		10.53	%		11.37	%		10.53	%
Tier 1 risk-based capital ratio		12.74	%		12.74	%		12.28	%		12.36	%		11.87	%		12.74	%		11.87	%
Total risk-based capital ratio		13.82	%		13.73	%		13.03	%		13.09	%		12.60	%		13.82	%		12.60	%
Tier 1 capital	$	420,225			412,526			406,445			405,148			395,010			420,225			395,010
Tier 1 plus tier 2 capital	$	455,797			444,772			431,273			429,038			419,424			455,797			419,424
Total risk-weighted assets	$	3,298,047			3,238,444			3,309,336			3,276,754			3,327,723			3,298,047			3,327,723
Book value per common share	$	26.59			26.20			25.82			25.36			24.93			26.59			24.93
Tangible book value per common share	$	23.37			22.96			22.55			22.12			21.64			23.37			21.64
Cash dividend per common share	$	0.28			0.28			0.28			0.27			0.27			0.84			0.79
ASSET QUALITY
Gross loan charge-offs	$	124			335			40			112			519			499			771
Recoveries	$	250			153			229			287			180			632			355
Net loan charge-offs (recoveries)	$	(126	)		182			(189	)		(175	)		339			(133	)		416
Net loan charge-offs to average loans		(0.02	%)		0.02	%		(0.03	%)		(0.02	%)		0.05	%		(0.01	%)		0.02	%
Allowance for loan losses	$	35,572			32,246			24,828			23,889			24,414			35,572			24,414
Allowance to loans		1.06	%		0.97	%		0.86	%		0.89	%		0.88	%		1.06	%		0.88	%
Allowance to loans excluding PPP loans		1.27	%		1.16	%		0.86	%		0.89	%		0.88	%		1.27	%		0.88	%
Nonperforming loans	$	4,141			3,212			3,469			2,284			2,644			4,141			2,644
Other real estate/repossessed assets	$	512			198			271			452			243			512			243
Nonperforming loans to total loans		0.12	%		0.10	%		0.12	%		0.08	%		0.09	%		0.12	%		0.09	%
Nonperforming assets to total assets		0.11	%		0.08	%		0.10	%		0.08	%		0.08	%		0.11	%		0.08	%
NONPERFORMING ASSETS - COMPOSITION
Residential real estate:
Land development	$	36			36			37			34			32			36			32
Construction	$	198			198			283			0			0			198			0
Owner occupied / rental	$	2,597			2,750			2,922			2,364			2,576			2,597			2,576
Commercial real estate:
Land development	$	0			0			43			0			0			0			0
Construction	$	0			0			0			0			0			0			0
Owner occupied	$	1,576			275			287			326			240			1,576			240
Non-owner occupied	$	23			25			0			0			26			23			26
Non-real estate:
Commercial assets	$	198			98			156			0			0			198			0
Consumer assets	$	25			28			12			12			13			25			13
Total nonperforming assets		4,653			3,410			3,740			2,736			2,887			4,653			2,887
NONPERFORMING ASSETS - RECON
Beginning balance	$	3,410			3,740			2,736			2,887			3,951			2,736			4,952
Additions - originated loans/former branch	$	1,615			220			1,344			30			339			3,179			904
Other activity	$	0			0			(31	)		135			57			(31	)		91
Return to performing status	$	(72	)		(26	)		(7	)		0			(126	)		(105	)		(126	)
Principal payments	$	(249	)		(278	)		(110	)		(232	)		(1,014	)		(637	)		(1,908	)
Sale proceeds	$	0			(49	)		(192	)		(36	)		(253	)		(241	)		(756	)
Loan charge-offs	$	(51	)		(173	)		0			(48	)		(59	)		(224	)		(241	)
Valuation write-downs	$	0			(24	)		0			0			(8	)		(24	)		(29	)
Ending balance	$	4,653			3,410			3,740			2,736			2,887			4,653			2,887
LOAN PORTFOLIO COMPOSITION
Commercial:
Commercial & industrial	$	1,321,419			1,307,456			873,679			846,551			882,747			1,321,419			882,747
Land development & construction	$	50,941			52,984			62,908			56,118			48,418			50,941			48,418
Owner occupied comm'l R/E	$	549,364			567,621			579,229			579,004			567,267			549,364			567,267
Non-owner occupied comm'l R/E	$	878,897			841,145			823,366			835,345			883,079			878,897			883,079
Multi-family & residential rental	$	137,740			132,047			133,148			124,526			126,855			137,740			126,855
Total commercial	$	2,938,361			2,901,253			2,472,330			2,441,544			2,508,366			2,938,361			2,508,366
Retail:
1-4 family mortgages	$	348,460			367,060			356,338			339,749			346,095			348,460			346,095
Home equity & other consumer	$	63,723			64,743			72,875			75,374			78,552			63,723			78,552
Total retail	$	412,183			431,803			429,213			415,123			424,647			412,183			424,647
Total loans	$	3,350,544			3,333,056			2,901,543			2,856,667			2,933,013			3,350,544			2,933,013
END OF PERIOD BALANCES
Loans	$	3,350,544			3,333,056			2,901,543			2,856,667			2,933,013			3,350,544			2,933,013
Securities	$	330,426			325,663			330,149			352,657			363,535			330,426			363,535
Other interest-earning assets	$	495,308			386,711			186,938			180,469			144,263			495,308			144,263
Total earning assets (before allowance)	$	4,176,278			4,045,430			3,418,630			3,389,793			3,440,811			4,176,278			3,440,811
Total assets	$	4,420,610			4,314,379			3,657,387			3,632,915			3,710,380			4,420,610			3,710,380
Noninterest-bearing deposits	$	1,449,879			1,445,620			956,290			924,916			967,189			1,449,879			967,189
Interest-bearing deposits	$	1,922,155			1,816,660			1,689,126			1,765,468			1,799,902			1,922,155			1,799,902
Total deposits	$	3,372,034			3,262,280			2,645,416			2,690,384			2,767,091			3,372,034			2,767,091
Total borrowed funds	$	600,892			611,298			576,996			506,301			517,523			600,892			517,523
Total interest-bearing liabilities	$	2,523,047			2,427,958			2,266,122			2,271,769			2,317,425			2,523,047			2,317,425
Shareholders' equity	$	431,900			425,221			418,389			416,561			407,200			431,900			407,200
AVERAGE BALANCES
Loans	$	3,315,741			3,294,883			2,861,047			2,871,674			2,903,161			3,157,802			2,846,735
Securities	$	327,668			333,843			344,906			362,347			363,394			335,443			358,557
Other interest-earning assets	$	457,598			251,833			153,638			176,034			118,314			288,310			93,800
Total earning assets (before allowance)	$	4,101,007			3,880,559			3,359,591			3,410,055			3,384,869			3,781,555			3,299,092
Total assets	$	4,346,624			4,119,573			3,602,784			3,650,087			3,622,168			4,024,175			3,531,841
Noninterest-bearing deposits	$	1,454,887			1,304,986			923,827			948,602			930,851			1,228,729			886,536
Interest-bearing deposits	$	1,863,302			1,767,985			1,724,030			1,759,377			1,741,563			1,785,391			1,710,120
Total deposits	$	3,318,189			3,072,971			2,647,857			2,707,979			2,672,414			3,014,120			2,596,656
Total borrowed funds	$	583,994			607,074			517,961			509,932			529,590			569,729			531,073
Total interest-bearing liabilities	$	2,447,296			2,375,059			2,241,991			2,269,309			2,271,153			2,355,120			2,241,193
Shareholders' equity	$	429,865			422,230			419,612			410,593			403,350			423,924			389,628