Mercantile Bank (MBWM) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights Mercantile Bank Corporation reported strong Q2 2025 financial results, driven by net income growth and strategic initiatives to enhance liquidity and market position Q2 2025 Financial Performance Overview Mercantile Bank Corporation reported robust financial results for Q2 2025, with significant increases in net income and diluted EPS compared to the prior year. The strong performance was driven by net interest income growth, substantial noninterest income growth, and a notable reduction in federal income tax expense | Metric | Q2 2025 | Q2 2024 | YoY Change | YoY % Change | | :--------------------- | :-------- | :-------- | :--------- | :----------- | | Net Income | $22.6 million | $18.8 million | +$3.8 million | +20.2% | | Diluted EPS | $1.39 | $1.17 | +$0.22 | +18.8% | | Net Revenue | $60.9 million | $56.7 million | +$4.2 million | +7.4% | | Net Interest Income | $49.5 million | $47.1 million | +$2.4 million | +5.1% | | Noninterest Income | $11.5 million | $9.7 million | +$1.8 million | +18.4% | - Key drivers of strong operating performance included net interest income growth, a stabilizing net interest margin, increases in core noninterest income, a significant decline in federal income tax expense, robust commercial loan expansion, and sustained strength in asset quality and capital levels[2] Key Strategic Initiatives & Outlook Mercantile is focused on lowering its loan-to-deposit ratio through local deposit generation and strengthening on-balance sheet liquidity. The announced partnership with Eastern Michigan Financial Corporation is a key strategic move to enhance its position as Michigan's largest bank and expand its footprint - Strategic goals include lowering the loan-to-deposit ratio through local deposit generation (expanding existing relationships and new client acquisition) and strengthening on-balance sheet liquidity[2] - The partnership with Eastern Michigan Financial Corporation will enhance Mercantile's position as the largest bank founded, headquartered, and operated in Michigan, and help achieve strategic goals like lowering the loan-to-deposit ratio, strengthening liquidity, and expanding its footprint in Eastern and Southeastern Michigan[2] - Second quarter highlights included net interest income growth, notable increases in mortgage banking, interest rate swap, treasury management, and payroll services income, reduction in federal income tax expense, solid commercial loan portfolio expansion, and robust capital position[4] Operating Results Mercantile's Q2 2025 operating results show increased net interest income and noninterest income, alongside higher expenses and a reduced tax burden, contributing to overall profitability Net Interest Income & Margin Net interest income increased by 5.1% year-over-year, primarily due to growth in earning assets, which offset a lower net interest margin. The net interest margin declined to 3.49% in Q2 2025, mainly due to a reduced yield on loans and a change in earning asset mix, despite a decrease in the cost of funds | Metric | Q2 2025 | Q2 2024 | YoY Change | | :---------------------- | :-------- | :-------- | :--------- | | Net Interest Income | $49.5 million | $47.1 million | +$2.4 million | | Net Interest Margin | 3.49% | 3.63% | -0.14% | | Yield on Average Earning Assets | 5.77% | 6.07% | -0.30% | | Yield on Loans | 6.32% | 6.64% | -0.32% | | Cost of Funds | 2.28% | 2.44% | -0.16% | - The lower yield on loans was mainly due to lower interest rates on variable-rate commercial loans, following FOMC rate decreases in late 2024[5] - The decrease in cost of funds was primarily due to lower rates paid on money market accounts and time deposits, reflecting the decreased interest rate environment[6] Noninterest Income Noninterest income saw an 18.4% increase in Q2 2025, driven by higher mortgage banking income, interest rate swap income, treasury management fees, bank owned life insurance earnings, and payroll service fees, along with tax credit syndication fees | Metric | Q2 2025 | Q2 2024 | YoY Change | YoY % Change | | :---------------------- | :-------- | :-------- | :--------- | :----------- | | Total Noninterest Income | $11.5 million | $9.7 million | +$1.8 million | +18.4% | | Mortgage Banking Income | $3.969 million | $3.023 million | +$0.946 million | +31.3% | | Interest Rate Swap Income | $1.230 million | $0.766 million | +$0.464 million | +60.6% | | Treasury Management Fees (part of Other Income) | Increased | Increased | - | - | | Payroll Service Fees | $0.783 million | $0.686 million | +$0.097 million | +14.1% | - Mortgage banking income increased due to a higher percentage of loans originated with intent to sell (79% in Q2 2025 vs. 75% in Q2 2024) and a 16% increase in total loan originations[8] - The recognition of tax credit syndication fees also contributed to the increase in noninterest income[8] Provision for Credit Losses The provision for credit losses decreased significantly in Q2 2025 compared to Q2 2024. The current quarter's provision was mainly driven by an individual allocation for a nonaccrual commercial construction loan and net loan growth, partially offset by reductions from nonperforming loan payoffs | Metric | Q2 2025 | Q2 2024 | YoY Change | | :-------------------------- | :-------- | :-------- | :--------- | | Provision for Credit Losses | $1.6 million | $3.5 million | -$1.9 million | - The Q2 2025 provision included a $2.5 million individual allocation for a commercial construction loan placed on nonaccrual and $0.7 million for net loan growth, offset by a $1.0 million reduction from nonperforming loan payoffs/paydowns[7] - Changes in loan portfolio composition and an improved economic forecast positively impacted provision expense[7] Noninterest Expense Noninterest expense increased in Q2 2025, primarily due to higher salary and benefit costs resulting from annual merit increases, market adjustments, a larger bonus accrual, and increased health insurance claims and payroll taxes. Higher allocations to the reserve for unfunded loan commitments also contributed | Metric | Q2 2025 | Q2 2024 | YoY Change | YoY % Change | | :------------------- | :-------- | :-------- | :--------- | :----------- | | Total Noninterest Expense | $33.4 million | $29.7 million | +$3.7 million | +12.5% | | Salaries and Benefits | $20.711 million | $17.913 million | +$2.798 million | +15.6% | - The increase in salary and benefit costs reflected annual merit pay increases, market adjustments, a larger bonus accrual, lower residential mortgage loan deferred salary costs, higher health insurance claims, and increased payroll taxes[9] - Higher allocations to the reserve for unfunded loan commitments, mainly from increased commercial loan commitments, also contributed to the rise[9] Federal Income Tax Expense Federal income tax expense decreased significantly in Q2 2025, primarily due to a $1.5 million tax benefit from the acquisition of transferable energy tax credits, which lowered the effective tax rate | Metric | Q2 2025 | Q2 2024 | YoY Change | | :------------------------ | :-------- | :-------- | :--------- | | Federal Income Tax Expense | $3.3 million | $4.7 million | -$1.4 million | | Effective Tax Rate | 12.9% | 20.1% | -7.2% | | Tax Benefit from Energy Tax Credits | $1.5 million | N/A | N/A | - The acquisition of transferable energy tax credits provided an aggregate $1.5 million tax benefit during the period, positively impacting the effective tax rate[10] Balance Sheet Analysis Total assets grew, driven by commercial loan expansion and increased securities, while deposits remained stable, leading to a higher loan-to-deposit ratio Assets Total assets increased to $6.18 billion as of June 30, 2025, up from year-end 2024. This growth was primarily driven by an increase in total loans, particularly commercial loans, and an increase in securities available for sale | Metric | June 30, 2025 | Dec 31, 2024 | Change | | :-------------------------- | :-------------- | :------------- | :----------- | | Total Assets | $6.18 billion | $6.05 billion | +$129 million | | Total Loans | $4.698 billion | $4.601 billion | +$97.2 million | | Commercial Loans Growth (annualized H1 2025) | +6.2% | N/A | N/A | | Securities Available for Sale | $826.4 million | $730.4 million | +$96.1 million | - Commercial loans grew an annualized 6.2% during the first half of 2025, despite significant payoffs and paydowns totaling approximately $154 million[12] - Unfunded commitments on commercial construction and development loans totaled $237 million, and residential construction loans totaled $35 million, expected to be funded over the next 12-18 months[14] Liabilities (Deposits & Borrowings) Total deposits remained relatively stable at $4.71 billion. While local deposits saw a slight reduction due to seasonal withdrawals, this was largely offset by growth in existing relationships and new client acquisitions. The loan-to-deposit ratio increased to 100% as of June 30, 2025 | Metric | June 30, 2025 | Dec 31, 2024 | Change | | :-------------------------- | :-------------- | :------------- | :----------- | | Total Deposits | $4.71 billion | $4.70 billion | +$12.1 million | | Local Deposits | Down $37.1 million | N/A | -0.8% | | Brokered Deposits | Up $49.2 million | N/A | N/A | | Loan-to-Deposit Ratio | 100% | 98% | +2% | | Wholesale Funds | $555 million | $537 million | +$18 million | - The slight reduction in local deposits was primarily due to seasonal withdrawals for bonus and tax payments, largely offset by net growth in existing deposit relationships and new client acquisitions[16] - Noninterest-bearing checking accounts represented approximately 25% of total deposits[16] Loan Portfolio Composition Commercial loans continued to expand, with commercial and industrial loans and owner-occupied commercial real estate loans representing approximately 55% of total commercial loans. The company noted accelerated commercial loan growth in Q2 2025 as economic uncertainties eased - Commercial and industrial loans and owner-occupied commercial real estate loans combined represented approximately 55% of total commercial loans as of June 30, 2025[15] - Commercial loan growth accelerated during Q2 2025 as tariff-induced concerns eased, leading to the commencement of previously delayed construction projects and business expansion activities[17] - Management believes abundant opportunities exist for booking commercial loans in future periods, supported by the current pipeline and ongoing discussions with borrowers[17] Asset Quality Nonperforming assets increased due to a specific commercial construction loan, yet overall asset quality remained strong with nominal past due loans and net loan recoveries Nonperforming Assets Nonperforming assets increased to $9.7 million, or 0.2% of total assets, as of June 30, 2025. This increase was primarily due to the deterioration of a commercial construction loan, which represented approximately 57% of total nonperforming assets | Metric | June 30, 2025 | Dec 31, 2024 | June 30, 2024 | | :-------------------------- | :-------------- | :------------- | :-------------- | | Nonperforming Assets | $9.7 million | $5.7 million | $9.1 million | | Nonperforming Assets to Total Assets | 0.2% | <0.1% | 0.2% | | Commercial Construction Loan (NPA) | ~57% of total NPA | N/A | N/A | - The increase in nonperforming assets during the first six months of 2025 mainly reflected the deterioration of a previously mentioned nonperforming commercial construction loan[18] - The level of past due loans remained nominal, and asset quality metrics remained strong due to cautious underwriting and customers' ability to operate effectively[18][19] Loan Charge-offs and Recoveries Mercantile reported net loan recoveries of $0.1 million, or an annualized 0.01% of average total loans, during the first six months of 2025, indicating strong loan quality | Metric | H1 2025 | H1 2024 | | :------------------------------------ | :-------- | :-------- | | Loan Charge-offs | <$0.1 million | N/A | | Recoveries of Prior Period Loan Charge-offs | >$0.1 million | N/A | | Net Loan Recoveries | $0.1 million | N/A | | Net Loan Recoveries to Average Total Loans (annualized) | 0.01% | N/A | - The residential mortgage loan and consumer loan portfolios continued to exhibit strong performance, as evidenced by ongoing low past due and charge-off levels[19] Capital Position Mercantile maintained a strong 'well-capitalized' position with increased shareholders' equity, despite a reduction in net unrealized losses on investments Shareholders' Equity & Capital Ratios Shareholders' equity increased to $632 million as of June 30, 2025. Mercantile Bank maintained a 'well-capitalized' position with a total risk-based capital ratio of 13.9%, exceeding the minimum regulatory threshold by approximately $218 million | Metric | June 30, 2025 | Dec 31, 2024 | Change | | :-------------------------- | :-------------- | :------------- | :----------- | | Shareholders' Equity | $632 million | $584.5 million | +$47.0 million | | Total Risk-Based Capital Ratio | 13.9% | 13.9% | 0% | | Excess Capital over 10% Regulatory Threshold | ~$218 million | N/A | N/A | - Mercantile Bank maintained 'well-capitalized' positions at the end of Q2 2025 and year-end 2024[20] Unrealized Losses on Investments The net unrealized loss on available-for-sale investments decreased to $45.3 million as of June 30, 2025, resulting in a lower after-tax reduction to equity capital compared to year-end 2024. Even with this adjustment, the bank's excess capital remains robust | Metric | June 30, 2025 | Dec 31, 2024 | Change | | :------------------------------------ | :-------------- | :------------- | :----------- | | Net Unrealized Loss on Investments | $45.3 million | $63.1 million | -$17.8 million | | After-Tax Reduction to Equity Capital | $35.8 million | $49.8 million | -$14.0 million | | Adjusted Excess Capital (over 10% regulatory threshold) | ~$183 million | N/A | N/A | - Unrealized gains and losses on investments are excluded from regulatory capital ratio calculations[21] Strategic Partnership Mercantile announced a strategic merger with Eastern Michigan Financial Corporation, aiming to expand its market presence and enhance liquidity Eastern Michigan Financial Corporation Merger Mercantile Bank Corporation announced a definitive agreement to combine with Eastern Michigan Financial Corporation in a cash and stock transaction. This partnership is expected to strengthen Mercantile's position as Michigan's largest bank, expand its operating footprint, and enhance liquidity through Eastern Michigan's strong deposit franchise - Mercantile and Eastern Michigan Financial Corporation entered into a definitive agreement for a cash and stock transaction[24] - The partnership will strengthen Mercantile's position as the largest bank headquartered in Michigan by total assets[24] - The merger is expected to strategically expand Mercantile's operating footprint and leverage Eastern Michigan's exceptional deposit franchise with substantial excess liquidity[24] Company Information & Disclosures This section provides an overview of Mercantile Bank Corporation, its services, and important disclaimers regarding forward-looking statements and investor communication About Mercantile Bank Corporation Mercantile Bank Corporation, based in Grand Rapids, Michigan, is the bank holding company for Mercantile Bank. It provides financial products and services to businesses, individuals, and governmental units, distinguished by exceptional service and community commitment. With approximately $6.2 billion in assets, it is one of Michigan's largest banks - Mercantile Bank Corporation is based in Grand Rapids, Michigan, and serves businesses, individuals, and governmental units[27] - The company is one of the largest Michigan-based banks with approximately $6.2 billion in assets[27] - Mercantile Bank Corporation's common stock is listed on the NASDAQ Global Select Market under the symbol 'MBWM'[27] Forward-Looking Statements This section contains a standard disclaimer regarding forward-looking statements, highlighting that actual results may differ materially due to various risks and uncertainties, including changes in interest rates, economic conditions, competition, and regulatory actions. Mercantile undertakes no obligation to update these statements - The news release contains forward-looking statements subject to risks and uncertainties, which may cause actual results to differ materially[28] - Factors influencing actual results include changes in interest rates, inflation, real estate values, market volatility, demand for services, regulatory changes, and technological advances[28] - Mercantile undertakes no obligation to update or clarify forward-looking statements, and investors are cautioned not to place undue reliance on them[28] Investor Presentation & Contact Information Mercantile has prepared investor presentation materials for its Q2 2025 conference call, available on its Investor Relations website. Contact information for the President and CEO, and Executive Vice President and CFO, is provided for further inquiries - Investor presentation materials for the Q2 2025 conference call are available in the Investor Relations section of Mercantile's website[26] - Contact information for Raymond Reitsma (President and CEO) and Charles Christmas (Executive Vice President and CFO) is provided for further information[29] Consolidated Financial Statements This section presents the detailed consolidated balance sheets, reports of income, and financial highlights for Mercantile Bank Corporation Consolidated Balance Sheets The consolidated balance sheets provide a snapshot of Mercantile Bank Corporation's financial position as of June 30, 2025, compared to December 31, 2024, and June 30, 2024, detailing assets, liabilities, and shareholders' equity | (dollars in thousands) | JUNE 30, 2025 | DECEMBER 31, 2024 | JUNE 30, 2024 | | :--------------------------------- | :-------------- | :---------------- | :-------------- | | ASSETS | | | | | Cash and due from banks | $98,900 | $56,991 | $61,863 | | Interest-earning assets | 197,172 | 336,019 | 135,766 | | Total cash and cash equivalents | 296,072 | 393,010 | 197,629 | | Securities available for sale | 826,415 | 730,352 | 647,907 | | Federal Home Loan Bank stock | 21,513 | 21,513 | 21,513 | | Mortgage loans held for sale | 27,569 | 15,824 | 22,126 | | Loans | 4,698,019 | 4,600,781 | 4,438,245 | | Allowance for credit losses | (58,375) | (54,454) | (55,408) | | Loans, net | 4,639,644 | 4,546,327 | 4,382,837 | | Premises and equipment, net | 54,792 | 53,427 | 50,158 | | Bank owned life insurance | 95,012 | 93,839 | 86,001 | | Goodwill | 49,473 | 49,473 | 49,473 | | Other assets | 170,498 | 148,396 | 144,744 | | Total assets | $6,180,988 | $6,052,161 | $5,602,388 | | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | Deposits: | | | | | Noninterest-bearing | $1,180,801 | $1,264,523 | $1,119,888 | | Interest-bearing | 3,529,671 | 3,433,843 | 3,026,686 | | Total deposits | 4,710,472 | 4,698,366 | 4,146,574 | | Securities sold under agreements to repurchase | 242,785 | 121,521 | 221,898 | | Federal Home Loan Bank advances | 356,221 | 387,083 | 427,083 | | Subordinated debentures | 50,672 | 50,330 | 49,987 | | Subordinated notes | 89,486 | 89,314 | 89,143 | | Accrued interest and other liabilities | 99,833 | 121,021 | 116,552 | | Total liabilities | 5,549,469 | 5,467,635 | 5,051,237 | | SHAREHOLDERS' EQUITY | | | | | Common stock | 302,294 | 299,705 | 297,591 | | Retained earnings | 364,991 | 334,646 | 306,804 | | Accumulated other comprehensive income/(loss) | (35,766) | (49,825) | (53,244) | | Total shareholders' equity | 631,519 | 584,526 | 551,151 | | Total liabilities and shareholders' equity | $6,180,988 | $6,052,161 | $5,602,388 | Consolidated Reports of Income The consolidated reports of income present Mercantile Bank Corporation's financial performance for the three and six months ended June 30, 2025, compared to the same periods in 2024, detailing interest income, interest expense, net interest income, noninterest income, noninterest expense, and net income | (dollars in thousands except per share data) | THREE MONTHS ENDED June 30, 2025 | THREE MONTHS ENDED June 30, 2024 | SIX MONTHS ENDED June 30, 2025 | SIX MONTHS ENDED June 30, 2024 | | :----------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | INTEREST INCOME | | | | | | Loans, including fees | $73,962 | $72,819 | $145,954 | $144,089 | | Investment securities | 5,860 | 3,624 | 11,272 | 7,046 | | Interest-earning assets | 2,136 | 2,436 | 5,071 | 4,469 | | Total interest income | 81,958 | 78,879 | 162,297 | 155,604 | | INTEREST EXPENSE | | | | | | Deposits | 25,725 | 24,710 | 50,918 | 46,934 | | Short-term borrowings | 1,919 | 1,757 | 3,682 | 3,412 | | Federal Home Loan Bank advances | 2,897 | 3,252 | 5,795 | 6,651 | | Other borrowed money | 1,938 | 2,088 | 3,875 | 4,173 | | Total interest expense | 32,479 | 31,807 | 64,270 | 61,170 | | Net interest income | 49,479 | 47,072 | 98,027 | 94,434 | | Provision for credit losses | 1,600 | 3,500 | 3,700 | 4,800 | | Net interest income after provision for credit losses | 47,879 | 43,572 | 94,327 | 89,634 | | NONINTEREST INCOME | | | | | | Service charges on accounts | 1,967 | 1,692 | 3,806 | 3,224 | | Mortgage banking income | 3,969 | 3,023 | 6,620 | 5,365 | | Credit and debit card income | 2,350 | 2,266 | 4,551 | 4,387 | | Interest rate swap income | 1,230 | 766 | 1,310 | 2,104 | | Payroll services | 783 | 686 | 1,823 | 1,582 | | Earnings on bank owned life insurance | 561 | 437 | 1,104 | 1,609 | | Other income | 602 | 811 | 950 | 2,277 | | Total noninterest income | 11,462 | 9,681 | 20,164 | 20,548 | | NONINTEREST EXPENSE | | | | | | Salaries and benefits | 20,711 | 17,913 | 40,268 | 36,150 | | Occupancy | 2,155 | 2,220 | 4,273 | 4,509 | | Furniture and equipment | 826 | 923 | 1,613 | 1,852 | | Data processing costs | 3,599 | 3,415 | 7,369 | 6,704 | | Charitable foundation contributions | 2 | 4 | 5 | 707 | | Other expense | 6,086 | 5,262 | 10,955 | 9,758 | | Total noninterest expense | 33,379 | 29,737 | 64,483 | 59,680 | | Income before federal income tax expense | 25,962 | 23,516 | 50,008 | 50,502 | | Federal income tax expense | 3,344 | 4,730 | 7,853 | 10,154 | | Net Income | $22,618 | $18,786 | $42,155 | $40,348 | | Basic earnings per share | $1.39 | $1.17 | $2.60 | $2.50 | | Diluted earnings per share | $1.39 | $1.17 | $2.60 | $2.50 | | Average basic shares outstanding | 16,239,919 | 16,122,813 | 16,219,064 | 16,120,836 | | Average diluted shares outstanding | 16,239,919 | 16,122,813 | 16,219,064 | 16,120,836 | Consolidated Financial Highlights This section provides detailed quarterly and year-to-date financial highlights, including earnings, performance ratios, yield on assets, cost of funds, mortgage banking activity, capital ratios, and asset quality metrics, offering a comprehensive view of the company's trends | (dollars in thousands except per share data) | 2nd Qtr 2025 | 1st Qtr 2025 | 4th Qtr 2024 | 3rd Qtr 2024 | 2nd Qtr 2024 | YTD 2025 | YTD 2024 | | :----------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | :------- | :------- | | EARNINGS | | | | | | | | | Net interest income | $49,479 | $48,548 | $48,361 | $48,292 | $47,072 | $98,027 | $94,434 | | Provision for credit losses | $1,600 | $2,100 | $1,500 | $1,100 | $3,500 | $3,700 | $4,800 | | Noninterest income | $11,462 | $8,702 | $10,172 | $9,667 | $9,681 | $20,164 | $20,548 | | Noninterest expense | $33,379 | $31,104 | $33,806 | $32,303 | $29,737 | $64,483 | $59,680 | | Net income | $22,618 | $19,537 | $19,626 | $19,618 | $18,786 | $42,155 | $40,348 | | Diluted earnings per share | $1.39 | $1.21 | $1.22 | $1.22 | $1.17 | $2.60 | $2.50 | | PERFORMANCE RATIOS | | | | | | | | | Return on average assets | 1.50% | 1.32% | 1.30% | 1.35% | 1.36% | 1.41% | 1.48% | | Return on average equity | 14.72% | 13.34% | 13.36% | 13.73% | 13.93% | 14.05% | 15.15% | | Net interest margin (fully tax-equivalent) | 3.49% | 3.47% | 3.41% | 3.52% | 3.63% | 3.49% | 3.68% | | Efficiency ratio | 54.77% | 54.33% | 57.76% | 55.73% | 52.40% | 54.56% | 51.90% | | YIELD ON ASSETS / COST OF FUNDS | | | | | | | | | Yield on loans | 6.32% | 6.31% | 6.41% | 6.69% | 6.64% | 6.31% | 6.65% | | Yield on total earning assets | 5.77% | 5.74% | 5.81% | 6.08% | 6.07% | 5.76% | 6.06% | | Cost of funds (total earning assets) | 2.28% | 2.27% | 2.40% | 2.56% | 2.44% | 2.27% | 2.38% | | MORTGAGE BANKING ACTIVITY | | | | | | | | | Total mortgage loans originated | $141,921 | $100,396 | $121,010 | $160,944 | $122,728 | $242,317 | $202,658 | | Income on sale of mortgage loans | $3,219 | $2,455 | $3,768 | $3,376 | $2,487 | $5,674 | $4,551 | | CAPITAL | | | | | | | | | Tangible equity to tangible assets | 9.49% | 9.17% | 8.91% | 9.10% | 9.03% | 9.49% | 9.03% | | Total risk-based capital ratio | 14.37% | 14.44% | 14.17% | 14.13% | 14.10% | 14.37% | 14.10% | | Book value per common share | $38.87 | $37.47 | $36.20 | $36.14 | $34.15 | $38.87 | $34.15 | | Cash dividend per common share | $0.37 | $0.37 | $0.36 | $0.36 | $0.35 | $0.74 | $0.70 | | ASSET QUALITY | | | | | | | | | Net loan charge-offs (recoveries) | $(109) | $(112) | $3,637 | $(82) | $(270) | $(221) | $(694) | | Allowance to loans | 1.24% | 1.22% | 1.18% | 1.24% | 1.25% | 1.24% | 1.25% | | Nonperforming loans to total loans | 0.21% | 0.12% | 0.12% | 0.22% | 0.21% | 0.21% | 0.21% | | Nonperforming assets to total assets | 0.16% | 0.09% | 0.09% | 0.17% | 0.16% | 0.16% | 0.16% | | LOAN PORTFOLIO COMPOSITION (Total loans) | | | | | | | | | Commercial | $3,821,158 | $3,751,591 | $3,707,304 | $3,648,288 | $3,533,278 | $3,821,158 | $3,533,278 | | Retail | $876,861 | $884,958 | $893,477 | $904,730 | $904,967 | $876,861 | $904,967 | | END OF PERIOD BALANCES | | | | | | | | | Total assets | $6,180,988 | $6,141,200 | $6,052,161 | $5,917,127 | $5,602,388 | $6,180,988 | $5,602,388 | | Total deposits | $4,710,472 | $4,681,785 | $4,698,366 | $4,455,898 | $4,146,574 | $4,710,472 | $4,146,574 | | Shareholders' equity | $631,519 | $608,346 | $584,526 | $583,311 | $551,151 | $631,519 | $551,151 |