Exhibit 99.1

Mercantile Bank Corporation Reports Second Quarter 2011 Results

GRAND RAPIDS, Mich., July 19, 2011 — Mercantile Bank Corporation (NASDAQ: MBWM) (“Mercantile”) reported net income attributable to common shares of $2.4 million, or $0.27 per diluted share, for the second quarter of 2011, compared with a net loss attributable to common shares of $0.7 million, or ($0.08) per diluted share, for the prior-year period. The second quarter was highlighted by:

	•		Significantly improved profitability
	•		Strengthened capital ratios
	•		Additional improvement in asset quality; Nonperforming assets reduced by 19 percent from previous quarter-end, 44 percent from a year ago
	•		Provision for loan losses down $4.5 million or 73 percent from the previous year’s second quarter
	•		Level of loans in the 30- to 89-days delinquent category remains at virtually zero
	•		Continued improvement of core operating earnings; Net interest margin remains near historical high

“We continue to effectively manage the business as evidenced by our improved profitability, ability to further enhance capital ratios, the velocity at which we have reduced nonperforming assets, and our continued focus on re-engaging customers through new and innovative products. We remain diligent in shifting our loan portfolio towards more profitable lines of business, while continuing to grow our local deposits and limiting controllable expenses,” said Michael Price, Chairman and CEO of Mercantile Bank Corporation. “All of these efforts ultimately translate to a solid foundation on which to build as we continue to improve bottom-line results for our shareholders.”

Operating Results

Total revenue, which consists of net interest income and noninterest income, narrowed to $14.9 million during the 2011 second quarter, down $1.6 million or 9.5 percent from the

$16.4 million generated during the second quarter of 2010, primarily reflecting a reduction in average earning assets. Net interest income was $13.2 million, down $1.2 million or 8.8 percent from the $14.4 million earned in the prior-year second quarter. The decrease in net interest income resulted from a 16.2 percent decline in average earning assets, which was partially offset by a 30 basis point increase in the net interest margin. The reduction in average earning assets was the result of a shift of assets out of the loan portfolio as part of management’s strategic initiative to reduce the Bank’s commercial real estate lending.

Noninterest income for the 2011 second quarter was $1.7 million, down $0.3 million or 14.7 percent from the comparable prior-year period. The decrease in noninterest income primarily reflects lower rental income from fewer foreclosed properties.

Mercantile made further progress in reducing the provision for loan losses during the quarter as a result of a significant decline in total nonperforming loans, a slowdown in loan-rating downgrades, and an increase in loan-rating upgrades as the quality of the loan portfolio continues to markedly improve. The provision for loan losses was $1.7 million during the second quarter of 2011, compared to $6.2 million for the year-ago quarter. Additionally, despite the significant reduction in nonperforming loans throughout the last year, the Company maintained its allowance for loan losses at 3.45 percent of total loans as of June 30, 2011, compared to 3.59 percent as of December 31, 2010, and 3.38 percent as of June 30, 2010.

Over the past several years, the Company has made significant reductions in controllable costs and is now reporting progress in reducing costs associated with nonperforming assets, as well as FDIC insurance expense. Noninterest expense for the 2011 second quarter was $10.4 million, down $1.0 million from the year-ago quarter. Costs associated with the administration and resolution of problem assets, including legal expenses, property tax payments, appraisal costs and write-downs on foreclosed properties, totaled $2.0 million during the second quarter of 2011, down $0.5 million or 20.7 percent from the year-ago quarter. FDIC insurance premiums were $0.7 million in the second quarter of 2011, down from $1.2 million in the second quarter of 2010, resulting from a decreased assessment rate.

“We have taken an aggressive stance on resizing our operations and asset base to help sustain our return to profitability, and we are making a deliberate shift from preservation mode to growth,” Price added. “At the same time, we are cognizant of the role that our focused and consistent approach has played in maintaining our financial and brand strength through the recent downturn, and we will continue to be disciplined as we identify new opportunities and avenues for growth.”

Balance Sheet

While the Company continues to aggressively reduce its exposure to loans secured by commercial real estate, commercial/industrial activity has yet to rebound sufficiently to offset these efforts, resulting in a lower level of total assets. As of June 30, 2011, total assets were $1.54 billion, down $94.5 million or 5.8 percent from December 31, 2010; total

loans declined $140 million or 11.1 percent to $1.12 billion over the same time period. Compared to June 30, 2010, total assets declined $266 million or 14.8 percent, with total loans declining $288 million or 20.4 percent.

Real estate loans, particularly loans secured by non-owner-occupied commercial properties, comprise a majority of Mercantile’s loan portfolio. At June 30, 2011, real estate loans, excluding residential mortgage loans representing permanent financing of owner-occupied dwellings and home equity lines of credit, were $772 million, or approximately 69 percent of total loans, representing a decline of $192 million or 19.9 percent from the $964 million, or 68.4 percent of total loans, at June 30, 2010.

Non-owner-occupied commercial real estate (“CRE”) loans totaled $430 million as of June 30, 2011 (38.3 percent of total loans), a decline of $83.1 million over the past 12 months. Owner-occupied CRE loans were $265 million at the end of the second quarter of 2011, a decline of $37.9 million over the same period. Vacant land, land development and construction (“C&D”) loans, including both residential and commercial projects, totaled $77.5 million at June 30, 2011, down $71.1 million from a year ago. The commercial and industrial (“C&I”) segment of the loan portfolio was $262 million at June 30, 2011, a decline of approximately $83 million over the past 12 months, in large part reflecting the continued sluggishness in business activity and a corresponding reduction in accounts receivable and inventory financings, as well as significantly reduced requests for new equipment financing.

LOANS SECURED BY REAL ESTATE

($000s)		6/30/11				3/31/11				12/31/10				9/30/10				6/30/10
Residential-Related:
Vacant Land		$	13,484			$	16,321			$	17,201			$	18,013			$	20,351
Land Development			18,134				27,171				28,147				29,735				29,627
Construction			4,706				4,906				5,621				5,854				6,627
			36,324				48,398				50,969				53,602				56,605
Comm’l Non-Owner Occupied:
Vacant Land			12,639				13,669				14,293				15,416				19,812
Land Development			16,348				16,492				17,807				18,221				18,585
Construction			10,709				10,046				31,827				39,620				52,295
Commercial Buildings			429,708				484,629				489,371				509,777				512,816
			469,404				524,836				553,298				583,034				603,508
Comm’l Owner Occupied:
Construction			1,517				1,404				672				0				1,360
Commercial Buildings			264,848				273,739				282,388				298,846				302,768
			266,365				275,143				283,060				298,846				304,128
Total		$	772,093			$	848,377			$	887,327			$	935,482			$	964,241

Since a peak in December 2008, Mercantile has been focused on reducing wholesale funding and growing local deposits, especially interest-bearing checking and money market deposit accounts, in order to improve its liquidity. As of June 30, 2011, total deposits were $1.25 billion, a decline of $25.9 million since year-end 2010 and a reduction of $352 million since year-end 2008. By comparison, local deposits increased $300 million over the past 30 months to $770 million, representing 61.7 percent of total deposits compared to 29.4 percent at December 31, 2008. Compared to a year ago, local deposits increased $89.1 million, or 13.1 percent. Approximately 80 percent or $241 million of local deposit growth since year-end 2008 occurred in the interest-bearing checking and money market deposit account categories, primarily reflecting new and innovative products, various deposit-gathering initiatives, enhanced advertising and branding campaigns, and transfers from maturing time deposit accounts.

Wholesale funds were $523 million, or 38.3 percent of total funds, as of June 30, 2011, compared to $1.41 billion, or 71.5 percent of total funds, as of December 31, 2008. Compared to a year ago, wholesale funding was reduced by $311 million or 37.3 percent. The $891 million decline in wholesale funding since the end of 2008 reflects both the shift toward local deposits as well as a $734 million decline in total loans. This change has allowed Mercantile to reduce brokered deposits and FHLB advances as they matured over the past 30 months, and to prepay certain FHLB advances during the fourth quarter of 2010 and second quarter of 2011.

Short-term investments, consisting of federal funds sold and interest-bearing bank deposits, averaged $86.1 million during the second quarter of 2011. In addition to its short-term investments, Mercantile had approximately $145 million of borrowing capacity at the quarter’s end through various established lines of credit to meet potential funding needs as well as approximately $34 million of U.S. Government securities available to sell.

Asset Quality

Nonperforming assets (“NPAs”) at June 30, 2011 were $61.9 million, or 4.0 percent of total assets, compared to $86.1 million as of December 31, 2010, and $110.5 million as of June 30, 2010 (5.3 percent and 6.1 percent of total assets, respectively). This represents a decline of $24.2 million or 28.1 percent from the end of 2010 and a decline of $48.6 million or 44.0 percent from the year-ago quarter-end.

Robert B. Kaminski Jr., Mercantile’s Executive Vice President and Chief Operating Officer, added, “We are very pleased with the notable progress made on the overall asset quality as reflected in the significant decline of our nonperforming assets, recent upgrades within our loan portfolio and our 30-to 89-day delinquent loans remaining virtually at zero. Throughout this challenging economic period, we have remained diligent in the acceleration of our strategic plan to enhance our credit administration and resolve our problem assets, while maintaining a disciplined approach to controlling costs.

“Our plan calls for continued growth of local deposits and our team is working hard to make this plan a reality. As we work to grow our balance sheet, we will do so with the mindset of

maintaining our profitability. Mercantile’s ability to re-engage customers on the lending side while maintaining a disciplined and conservative approach, has further underscored the importance of our relationship-based focus through the economic downturn. We will remember the lessons learned and maintain our standard of vigilance, even as conditions improve in our markets.”

Nonperforming loans (“NPLs”) totaled $43.4 million as of June 30, 2011, down $16.8 million and $44.1 million, respectively, from the sequential quarter-end and year-ago quarter-end, while foreclosed real estate and repossessed assets increased $2.6 million and declined $4.5 million from the respective period ends. CRE loans represent 63.6 percent of NPLs, or $27.6 million. Investor-owned nonperforming CRE loans account for $19.8 million of total CRE nonperforming loans (4.6 percent of $430 million investor-owned CRE loans), while owner-occupied CRE loans account for $7.8 million (3.0 percent of $265 million owner-occupied CRE loans). Given the nature of collateral and the condition of the economy in general, and real estate markets specifically, progress toward resolution has been slow in both CRE categories, although some acceleration has been noted over the past few quarters.

Progress has also been achieved this past year toward resolution of nonperforming C&D loans, including both residential and commercial projects. C&D loans currently total $77.5 million, of which $3.5 million or 4.5 percent were nonperforming at June 30, 2011. This represents a substantial improvement since June 30, 2010, when $27.4 million or 18.4 percent of the $149 million C&D loan portfolio was nonperforming. Nonperforming C&I loans were $3.8 million as of June 30, 2011, a decline of $3.2 million since the year-ago quarter-end. Owner-occupied and rental residential NPLs were $8.6 million as of June 30, 2011, up $2.8 million since the year-ago quarter-end.

		NONPERFORMING ASSETS
($000s)		6/30/11				3/31/11				12/31/10				9/30/10				6/30/10
Residential Real Estate:
Land Development		$	8,531			$	14,252			$	14,547			$	16,746			$	21,551
Construction			2,089				2,268				2,333				2,924				10,231
Owner Occupied / Rental			8,996				8,893				9,454				7,251				6,159
			19,616				25,413				26,334				26,921				37,941
Commercial Real Estate:
Land Development			2,223				2,422				2,454				2,277				2,050
Construction			0				0				0				0				571
Owner Occupied			10,749				13,389				14,740				15,083				16,216
Non-Owner Occupied			25,526				30,086				34,209				41,725				46,706
			38,498				45,897				51,403				59,085				65,543
Non-Real Estate:
Commercial Assets			3,777				4,728				8,221				6,386				7,049
Consumer Assets			4				51				161				5				0
			3,781				4,779				8,382				6,391				7,049
Total		$	61,895			$	76,089			$	86,119			$	92,397			$	110,533

		NONPERFORMING LOANS
($000s)		6/30/11				3/31/11				12/31/10				9/30/10				6/30/10
Past due 90 days or more and accruing interest		$	0			$	0			$	766			$	0			$	24
Nonaccrual, including troubled debt restructurings			43,422				55,444				63,915				64,639				81,543
Troubled debt restructurings, accruing interest			0				4,761				4,763				5,862				5,946
Total		$	43,422			$	60,205			$	69,444			$	70,501			$	87,513

During the second quarter of 2011, Mercantile added $6.5 million of NPAs to its problem asset portfolio and successfully disposed of $14.6 million through a combination of asset sales and principal pay-downs. Loan charge-offs were $5.4 million and foreclosed asset valuation write-downs were $0.7 million. In total, NPAs decreased by a net $14.2 million during the second quarter of 2011.

Improvement in asset quality is even more apparent on a year-over-year basis. During the 12-month period ended June 30, 2011, Mercantile added $34.8 million of problem assets to its NPA portfolio, successfully disposed of $51.1 million, and charged-off or wrote-down an additional $32.3 million. In total, NPAs declined by a net $48.6 million since the year-ago quarter-end. By comparison, Mercantile added $98.3 million of NPAs, successfully disposed of $38.6 million, and charged-off or wrote-down an additional $35.8 million during the 12-month period ended June 30, 2010. In total, NPAs increased a net $23.9 million from June 30, 2009 to June 30, 2010.

		NONPERFORMING ASSETS RECONCILIATION
($000s)		2Q 2011				1Q 2011				4Q 2010				3Q 2010				2Q 2010
Beginning balance		$	76,089			$	86,119			$	92,397			$	110,533			$	117,557
Additions			6,478				3,848				13,602				10,905				13,101
Returns to performing status			0				(766	)			(1,019	)			(7,938	)			(1,356	)
Principal payments			(12,067	)			(5,555	)			(7,217	)			(5,422	)			(7,332	)
Sale proceeds			(2,547	)			(2,085	)			(5,282	)			(1,209	)			(2,398	)
Loan charge-offs			(5,393	)			(4,800	)			(4,650	)			(12,829	)			(8,176	)
Valuation write-downs			(665	)			(672	)			(1,712	)			(1,643	)			(863	)
Total		$	61,895			$	76,089			$	86,119			$	92,397			$	110,533

Net loan charge-offs were $5.1 million during the second quarter of 2011, or an annualized 1.7 percent of average loans, compared with $5.4 million (1.8 percent annualized) and $8.6 million (2.4 percent annualized) for the linked and prior-year quarters, respectively.

		NET LOAN CHARGE-OFFS (RECOVERIES)
($000s)		2Q 2011				1Q 2011				4Q 2010				3Q 2010				2Q 2010
Residential Real Estate:
Land Development		$	2,496			$	(2	)		$	312			$	2,115			$	1,254
Construction			(9	)			0				173				93				649
Owner Occupied / Rental			1,819				1,208				120				1,212				407
			4,306				1,206				605				3,420				2,310
Commercial Real Estate:
Land Development			(62	)			(73	)			219				360				674
Construction			0				0				0				0				660
Owner Occupied			755				1,436				976				2,159				726
Non-Owner Occupied			445				(40	)			2,642				6,805				2,551
			1,138				1,323				3,837				9,324				4,611
Non-Real Estate:
Commercial Assets			(336	)			2,794				819				1,517				1,670
Consumer Assets			(9	)			126				47				1				(3	)
			(345	)			2,920				866				1,518				1,667
Total		$	5,099			$	5,449			$	5,308			$	14,262			$	8,588

Capital Position

Shareholders’ equity, totaling $131 million as of June 30, 2011, increased $5.0 million from year end 2010, and regulatory capital ratios continue to improve. The Bank remains “well-capitalized” with a total risk-based capital ratio of 14.0 percent as of June 30, 2011, compared to 11.9 percent at June 30, 2010. At June 30, 2011, the Bank had approximately $50.7 million in excess of the 10.0 percent minimum regulatory threshold required to be considered a “well-capitalized” institution. Mercantile reported 8,605,830 total shares outstanding at the end of the 2011 second quarter.

Mr. Price concluded: “While there remains work to do, we are pleased with the progress we’ve made over the last year and feel most of the ‘Great Recession’s’ impact is now behind us. We believe we are in a good position to take advantage of the opportunities within the markets we serve, allowing us to gain market share even as we continue to administer the remaining non-performing assets. We are determined to use the momentum we’ve built over the last few quarters to continue to improve our capital position, maintain our disciplined approach in regards to credit quality, and profitably grow our business on the relationship-based model our organization was founded upon.”

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 the expertise of its banking staff. 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 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; 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:

AT MERCANTILE BANK CORPORATION:

Michael Price		Charles Christmas
Chairman & CEO		Chief Financial Officer
616-726-1600		616-726-1202
mprice@mercbank.com		cchristmas@mercbank.com

Mercantile Bank Corporation
Second Quarter 2011 Results

MERCANTILE BANK CORPORATION
CONSOLIDATED BALANCE SHEETS

		JUNE 30,				DECEMBER 31,				JUNE 30,
		2011				2010				2010
		(Unaudited)				(Audited)				(Unaudited)
ASSETS
Cash and due from banks		$	13,988,000			$	6,674,000			$	16,521,000
Interest-bearing deposit balances			9,501,000				9,600,000				9,470,000
Federal funds sold			103,510,000				47,924,000				53,892,000
Total cash and cash equivalents			126,999,000				64,198,000				79,883,000
Securities available for sale			199,785,000				220,830,000				217,117,000
Federal Home Loan Bank stock			11,961,000				14,345,000				15,681,000
Loans			1,122,999,000				1,262,630,000				1,410,710,000
Allowance for loan losses			(38,720,000	)			(45,368,000	)			(47,738,000	)
Loans, net			1,084,279,000				1,217,262,000				1,362,972,000
Premises and equipment, net			27,144,000				27,873,000				28,636,000
Bank owned life insurance			47,631,000				46,743,000				45,890,000
Accrued interest receivable			5,010,000				5,942,000				6,278,000
Other real estate owned and repossessed assets			18,473,000				16,675,000				23,020,000
Other assets			16,592,000				18,553,000				24,585,000
Total assets		$	1,537,874,000			$	1,632,421,000			$	1,804,062,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing		$	144,761,000			$	112,944,000			$	126,572,000
Interest-bearing			1,103,171,000				1,160,888,000				1,213,588,000
Total deposits			1,247,932,000				1,273,832,000				1,340,160,000
Securities sold under agreements to repurchase			71,207,000				116,979,000				108,271,000
Federal Home Loan Bank advances			45,000,000				65,000,000				160,000,000
Subordinated debentures			32,990,000				32,990,000				32,990,000
Other borrowed money			1,721,000				11,804,000				16,836,000
Accrued interest and other liabilities			8,107,000				5,880,000				6,762,000
Total liabilities			1,406,957,000				1,506,485,000				1,665,019,000
SHAREHOLDERS’ EQUITY
Preferred stock, net of discount			20,202,000				20,077,000				19,955,000
Common stock			173,939,000				173,815,000				173,769,000
Retained earnings (deficit)			(65,312,000	)			(68,781,000	)			(57,818,000	)
Accumulated other comprehensive income (loss)			2,088,000				825,000				3,137,000
Total shareholders’ equity			130,917,000				125,936,000				139,043,000
Total liabilities and shareholders’ equity		$	1,537,874,000			$	1,632,421,000			$	1,804,062,000

Mercantile Bank Corporation
Second Quarter 2011 Results

MERCANTILE BANK CORPORATION
CONSOLIDATED REPORTS OF OPERATIONS

		THREE MONTHS ENDED				THREE MONTHS ENDED				SIX MONTHS ENDED				SIX MONTHS ENDED
		June 30, 2011				June 30, 2010				June 30, 2011				June 30, 2010
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Interest income
Loans, including fees		$	16,171,000			$	20,066,000			$	32,903,000			$	40,471,000
Investment securities			2,235,000				2,583,000				4,626,000				5,326,000
Federal funds sold			48,000				37,000				78,000				69,000
Interest-bearing deposit balances			6,000				10,000				12,000				19,000
Total interest income			18,460,000				22,696,000				37,619,000				45,885,000
Interest expense
Deposits			4,333,000				5,992,000				8,967,000				12,489,000
Short-term borrowings			116,000				353,000				277,000				697,000
Federal Home Loan Bank advances			606,000				1,576,000				1,212,000				3,272,000
Other borrowed money			247,000				354,000				556,000				700,000
Total interest expense			5,302,000				8,275,000				11,012,000				17,158,000
Net interest income			13,158,000				14,421,000				26,607,000				28,727,000
Provision for loan losses			1,700,000				6,200,000				3,900,000				14,600,000
Net interest income after provision for loan losses			11,458,000				8,221,000				22,707,000				14,127,000
Noninterest income
Service charges on accounts			401,000				447,000				823,000				913,000
Gain on sale of commercial loans			0				5,000				0				225,000
Net gain on sale of investment securities			0				0				0				476,000
Other income			1,302,000				1,544,000				2,632,000				3,037,000
Total noninterest income			1,703,000				1,996,000				3,455,000				4,651,000
Noninterest expense
Salaries and benefits			4,364,000				4,559,000				8,735,000				9,225,000
Occupancy			708,000				723,000				1,409,000				1,473,000
Furniture and equipment			304,000				396,000				607,000				805,000
Nonperforming asset costs			1,950,000				2,460,000				5,048,000				4,964,000
FDIC insurance costs			719,000				1,167,000				1,635,000				2,353,000
Other expense			2,398,000				2,137,000				4,590,000				4,256,000
Total noninterest expense			10,443,000				11,442,000				22,024,000				23,076,000
Income (loss) before federal income tax expense (benefit)			2,718,000				(1,225,000	)			4,138,000				(4,298,000	)
Federal income tax expense (benefit)			0				(862,000	)			0				(1,292,000	)
Net income (loss)			2,718,000				(363,000	)			4,138,000				(3,006,000	)
Preferred stock dividends and accretion			337,000				321,000				669,000				641,000
Net income (loss) attributable to common shares		$	2,381,000			$	(684,000	)		$	3,469,000			$	(3,647,000	)
Basic earnings (loss) per share		$	0.28			$	(0.08	)		$	0.40			$	(0.43	)
Diluted earnings (loss) per share		$	0.27			$	(0.08	)		$	0.39			$	(0.43	)
Average basic shares outstanding			8,604,476				8,505,086				8,601,835				8,503,388
Average diluted shares outstanding			8,872,692				8,505,086				8,878,595				8,503,388

Mercantile Bank Corporation
Second Quarter 2011 Results

MERCANTILE BANK CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)

		Quarterly																				Year-To-Date
		2011				2011				2010				2010				2010
(dollars in thousands except per share data)		2nd Qtr				1st Qtr				4th Qtr				3rd Qtr				2nd Qtr				2011				2010
EARNINGS
Net interest income		$	13,158				13,449				13,687				13,935				14,421				26,607				28,727
Provision for loan losses		$	1,700				2,200				6,800				10,400				6,200				3,900				14,600
Noninterest income		$	1,703				1,752				2,304				2,289				1,996				3,455				4,651
Noninterest expense		$	10,443				11,581				12,181				11,899				11,442				22,024				23,076
Net income (loss) before federal income tax expense (benefit)		$	2,718				1,420				(2,990	)			(6,075	)			(1,225	)			4,138				(4,298	)
Net income (loss)		$	2,718				1,420				(4,953	)			(5,357	)			(363	)			4,138				(3,006	)
Net income (loss) common shares		$	2,381				1,088				(5,282	)			(5,682	)			(684	)			3,469				(3,647	)
Basic earnings (loss) per share		$	0.28				0.13				(0.62	)			(0.67	)			(0.08	)			0.40				(0.43	)
Diluted earnings (loss) per share		$	0.27				0.12				(0.62	)			(0.67	)			(0.08	)			0.39				(0.43	)
Average basic shares outstanding			8,604,476				8,599,166				8,516,202				8,507,174				8,505,086				8,601,835				8,503,388
Average diluted shares outstanding			8,872,692				8,884,675				8,516,202				8,507,174				8,505,086				8,878,595				8,503,388
PERFORMANCE RATIOS
Return on average assets			0.61	%			0.28	%			(1.21	%)			(1.27	%)			(0.15	%)			0.44	%			(0.39	%)
Return on average common equity			7.39	%			3.49	%			(15.83	%)			(16.14	%)			(1.98	%)			5.47	%			(5.28	%)
Net interest margin (fully tax-equivalent)			3.61	%			3.64	%			3.36	%			3.33	%			3.31	%			3.62	%			3.28	%
Efficiency ratio			70.27	%			76.19	%			76.17	%			73.34	%			69.69	%			73.26	%			69.14	%
Full-time equivalent employees			235				241				242				250				248				235				248
CAPITAL
Period-ending equity to assets			8.51	%			8.04	%			7.71	%			7.43	%			7.71	%			8.51	%			7.71	%
Tier 1 leverage capital ratio			10.27	%			9.88	%			9.09	%			9.15	%			9.02	%			10.27	%			9.02	%
Tier 1 risk-based capital ratio			12.58	%			11.70	%			11.17	%			10.77	%			10.65	%			12.58	%			10.65	%
Total risk-based capital ratio			13.85	%			12.98	%			12.45	%			12.04	%			11.92	%			13.85	%			11.92	%
Book value per common share		$	12.77				12.30				12.20				13.23				13.74				12.77				13.74
Cash dividend per common share		$	0.00				0.00				0.00				0.00				0.00				0.00				0.01
ASSET QUALITY
Gross loan charge-offs		$	6,733				6,031				5,892				14,499				9,891				12,764				16,737
Net loan charge-offs		$	5,099				5,449				5,308				14,262				8,588				10,548				14,740
Net loan charge-offs to average loans			1.73	%			1.79	%			1.63	%			4.11	%			2.35	%			1.76	%			1.99	%
Allowance for loan losses		$	38,720				42,118				45,368				43,876				47,738				38,720				47,738
Allowance for loan losses to total loans			3.45	%			3.49	%			3.59	%			3.30	%			3.38	%			3.45	%			3.38	%
Nonperforming loans		$	43,422				60,205				69,444				70,501				87,513				43,422				87,513
Other real estate and repossessed assets		$	18,473				15,884				16,675				21,896				23,020				18,473				23,020
Nonperforming assets to total assets			4.02	%			4.83	%			5.28	%			5.10	%			6.13	%			4.02	%			6.13	%
END OF PERIOD BALANCES
Loans		$	1,122,999				1,206,886				1,262,630				1,329,156				1,410,710				1,122,999				1,410,710
Total earning assets (before allowance)		$	1,447,756				1,494,163				1,555,329				1,715,322				1,706,870				1,447,756				1,706,870
Total assets		$	1,537,874				1,576,935				1,632,421				1,813,383				1,804,062				1,537,874				1,804,062
Deposits		$	1,247,932				1,253,644				1,273,832				1,351,864				1,340,160				1,247,932				1,340,160
Shareholders’ equity		$	130,917				126,814				125,936				134,734				139,043				130,917				139,043
AVERAGE BALANCES
Loans		$	1,179,786				1,233,037				1,292,289				1,378,248				1,465,631				1,206,264				1,491,123
Total earning assets (before allowance)		$	1,483,409				1,519,304				1,636,471				1,680,362				1,770,391				1,501,258				1,796,962
Total assets		$	1,566,708				1,602,882				1,728,375				1,774,671				1,862,526				1,584,695				1,891,478
Deposits		$	1,251,818				1,261,590				1,339,149				1,313,902				1,390,397				1,256,677				1,411,626
Shareholders’ equity		$	129,242				126,412				132,409				139,629				138,907				127,835				139,194