Exhibit 99

 

 

PRESS RELEASE

 

For Release:	April 29, 2021
Nasdaq:	MFNC
Contact:	Jesse A. Deering, EVP& Chief Financial Officer (248) 290-5906 /jdeering@bankmbank.com
Website:	www.bankmbank.com

 

MACKINAC FINANCIAL CORPORATION

REPORTS 2021 FIRST quarter FINANCIAL Results

 

Manistique, Michigan –Mackinac Financial Corporation (Nasdaq: MFNC) (“we”, or the “Corporation”) the bank holding company for mBank (“the Bank”) today announced 2021 first quarter net income of $3.88 million, or $.37 per share, compared to 2020 first quarter net income of $3.05 million, or $.28 per share. Weighted average shares outstanding for the first quarter of 2021 were 10,522,899 compared to 10,717,967 for the same period of 2020.

 

Total assets of the Corporation at March 31, 2021 were $1.51 billion, compared to $1.36 billion at March 31, 2020. Shareholders’ equity at March 31, 2021 totaled $170.18 million, compared to $160.06 million at March 31, 2020. Book value per share outstanding equated to $16.13 at the end of the first quarter 2021, compared to $14.93 per share outstanding a year ago. Tangible book value at quarter-end was $146.40 million, or $13.88 per share outstanding, compared to $135.61 million, or $12.87 per share outstanding at the end of the first quarter 2020.

 

Additional notes:

 

·

mBank, the Corporation’s primary asset, recorded net income of $4.26 million for the first quarter of 2021.

 

·

The Bank funded approximately $53 million of Paycheck Protection Program (PPP) loans in the first quarter of 2021 with origination fees totaling approximately $2.78 million. These loans continue to support small businesses throughout our footprint with the majority of recipients residing in the Upper Peninsula and Northern Michigan.

 

·

Non-interest income was very solid for the quarter including secondary market mortgage fees and gains on sale of $1.30 million and premiums on the sale of Small Business Administration (SBA) guaranteed loans of $433 thousand.

 

·

The residential mortgage pipeline resides at robust levels and we expect strong output from this line of business as we look to upcoming quarters.

 

·

Core operating margin, which is net of accretion from acquired loans and PPP fees that were subject to purchase accounting adjustments, was 4.14%.

 

·

On April 12, 2021 the Board of Directors of MFNC announced the signing of a definitive agreement for Nicolet Bankshares (Green Bay, WI) to acquire the Corporation. The transaction is expected to close in the third quarter of 2021. Specific information regarding the transaction can be found at www.bankmbank.com.

 

 

Revenue & PPP Recognition

 

Total revenue of the Corporation for first quarter 2021 was $17.29 million, compared to $17.60 million for the first quarter of 2020. Total interest income for the first three months of 2021 was $14.89 million, compared to $15.67 million for the same period in 2020. The 2021 first quarter interest income included accretive yield of $237 thousand from combined credit mark accretion associated with acquisitions, compared to $818 thousand in the same period of 2020.

 

The first quarter 2021 interest income was also positively impacted by recognition of a portion of the PPP loan origination fees that were earned during the quarter:

 

·

The bank originated approximately $53 million of PPP loans in the first quarter.

 

·

The origination efforts resulted in fees earned of $2.78 million, which are subject to FASB accounting guidance for recognition.

 

·

In accordance with applicable accounting guidance, the bank recognized $826 thousand in pre-tax fee revenue that offset ASC 310-20 eligible origination costs.

 

·

This recognition resulted in $1.95 million of fees remaining to be accreted over the expected life of the PPP loan pool, which will initially be 12-months unless acceleration occurs due to the loans being paid off or forgiven before maturity.

 

·

The amount accreted during the second quarter was $296 thousand.

 

·

The total amount of PPP fees that were recognized in the second quarter was $1.12 million, leaving $1.66 million to be accreted or accelerated upon payoff.

 

Loan Production and Portfolio Mix

 

Total balance sheet loans at March 31, 2021 were $1.06 billion, compared to March 31, 2020 balances of $1.04 billion. Total loans under management reside at $1.31 billion, which includes $244.14 million of service retained loans. Overall loan production for the first three months of 2021 was $133.56 million, which included $53.73 million of PPP loans. The remaining $79.8 million was inclusive of $35.1 million of secondary market loans, compared to total production of $66.9 million in the first quarter 2020, which was inclusive of $19.0 million of secondary market production.

 

 

 

Credit Quality

 

Nonperforming loans totaled $5.02 million, or .47% of total loans (.53% when excluding PPP loans) at March 31, 2021, compared to $6.42 million, or .61% of total loans at March 31, 2020. Total loan delinquencies greater than 30 days resided at .43% (.48% when excluding PPP loans), compared to 1.23% in 2020.  The nonperforming assets to total assets ratio resided at .45% (.48 when excluding PPP loans) for the first quarter of 2021, compared to .64% for the first quarter of 2020. The Corporation currently has no commercial loans in full payment deferral and a nominal $5.3 million that remain in the interest- only portion of their COVID-19 loan modification period. These loans are expected to return to normal principal and interest payments over the next quarter. There are $300 thousand of consumer loans that remain in full payment deferral. Total loans in some type of COVID-19 payment modification are a minimal .59% of total loans. There remains no sign of any adverse systemic issues or deterioration in the loan portfolio and we expect good payment performance as we look to our stronger commerce months ahead.

 

 

Margin Analysis, Funding and Liquidity

 

Net interest income for first quarter 2021 was $13.78 million, resulting in a Net Interest Margin (NIM) of 4.52%, compared to $13.40 million in the first quarter 2020 and a NIM of 4.60%. Core operating margin, which is net of accretion from acquired loans that were subject to purchase accounting adjustments (as well as PPP impact for the 2021 period), was 4.14% for the first quarter of 2021, compared to 4.32% for the same period of 2020.

 

  

 

Total bank deposits (excluding brokered deposits) have increased by approximately $261 million year-over-year from $999.09 million at March 31, 2020 to $1.26 billion at first quarter-end 2021. Total brokered deposits have decreased significantly and were $13.35 million at March 31, 2021, compared to $96.29 million at March 31, 2020, a decrease of 86%. FHLB (Federal Home Loan Bank) borrowings have also decreased from $64.12 million at March 31, 2020 to $53.46 million at March 31, 2021. The company plans to retire an additional $25 million of FHLB borrowings in June 2021. Overall access to short-term functional liquidity remains very strong through multiple sources, if needed.

 

Noninterest Income / Expense

 

First quarter 2021 Noninterest Income was $2.40 million, compared to $1.94 million for the same period of 2020. The significant year-over-year improvement is mainly due to the increase of secondary market mortgage sales. Noninterest Expense for the first quarter of 2021 was $11.85 million, compared to $11.37 million for the same period of 2020. The expense variance was largely a result of PPP related expenses.

 

Assets and Capital

 

Total assets of the Corporation at March 31, 2021 were $1.51 billion, compared to $1.36 billion at March 31, 2020. Shareholders’ equity at March 31, 2021 totaled $170.18 million, compared to $160.06 million at March 31, 2020. Book value per share outstanding equated to $16.13 at the end of the first quarter 2021, compared to $14.93 per share outstanding a year ago. Tangible book value at quarter-end was $146.40 million, or $13.88 per share outstanding, compared to $135.61 million, or $12.87 per share outstanding at the end of the first quarter 2020.

 

Both the Corporation and the Bank are “well-capitalized” with total risk-based capital to risk-weighted assets of 15.34% and 14.62% and tier 1 capital to total tier 1 average assets at the Corporation of 9.63% and at the bank of 9.16%. The leverage ratio is calculated inclusive of PPP loan balances.

 

Paul D. Tobias, Chairman and Chief Executive Officer of the Corporation and Chairman of mBank concluded, “As we move toward closing of the Nicolet transaction, the company continues to work on behalf of all constituencies to make the transition as smooth as possible while maintaining best-in-class service to our valued clients. We know that with our experience on the buy-side and Nicolet being an active acquirer, we have two dedicated teams that will complete this process in the best manner possible.”

 

 

Mackinac Financial Corporation is a registered bank holding company formed under the Bank Holding Company Act of 1956 with assets in excess of $1.5 billion and whose common stock is traded on the NASDAQ stock market as “MFNC.” The principal subsidiary of the Corporation is mBank. Headquartered in Manistique, Michigan, mBank has 28 branch locations: ten in the Upper Peninsula, ten in the Northern Lower Peninsula, one in Oakland County, Michigan, and seven in Northern Wisconsin. The Corporation’s banking services include commercial lending and treasury management products and services geared toward small to mid-sized businesses, as well as a full array of personal and business deposit products and consumer loans.

 

Forward-Looking Statements

 

This release contains certain forward-looking statements. Words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “should,” “will,” and variations of such words and similar expressions are intended to identify forward-looking statements: as defined by the Private Securities Litigation Reform Act of 1995. These statements reflect management’s current beliefs as to expected outcomes of future events and are not guarantees of future performance. These statements involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood, and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such forward-looking statements. Factors that could cause a difference include among others: risks that the Company’s proposed merger with Nicolet Bankshares, Inc. (“Nicolet”) will not be consummated due to inability to obtain shareholder or regulatory approval or to satisfy certain closing conditions, or if consummated, the possibility that any of the anticipated benefits of the proposed merger will not be realized; changes in the national and local economies or market conditions; changes in interest rates and banking regulations; the impact of competition from traditional or new sources; and the possibility that anticipated cost savings and revenue enhancements from mergers and acquisitions, bank consolidations, and other sources may not be fully realized at all or within specified time frames as well as other risks and uncertainties including but not limited to those detailed from time to time in filings of the Company with the Securities and Exchange Commission. These and other factors may cause decisions and actual results to differ materially from current expectations. Mackinac Financial Corporation undertakes no obligation to revise, update, or clarify forward-looking statements to reflect events or conditions after the date of this release.

 

Important Information and Where to Find It

 

Certain communications in this release relate to the proposed merger transaction involving Nicolet and Mackinac. In connection with the proposed merger, Nicolet and Mackinac will file a joint proxy statement/‌prospectus on Form S-4 and other relevant documents concerning the merger with the Securities and Exchange Commission (the “SEC”). BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS ARE URGED TO READ THE JOINT PROXY STATEMENT/‌PROSPECTUS AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED MERGER OR INCORPORATED BY REFERENCE IN THE JOINT PROXY STATEMENT/‌PROSPECTUS BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT NICOLET, MACKINAC AND THE PROPOSED MERGER. When available, the joint proxy statement/‌prospectus will be delivered to shareholders of Nicolet and Mackinac. Investors may obtain copies of the joint proxy statement/prospectus and other relevant documents (as they become available) free of charge at the SEC’s website (www.sec.gov). Copies of the documents filed with the SEC by Nicolet will be available free of charge on Nicolet’s website at www.nicoletbank.com. Copies of the documents filed with the SEC by Mackinac will be available free of charge on Mackinac’s website at www.bankmbank.com.

 

Nicolet, Mackinac and certain of their directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the shareholders of Nicolet and the shareholders of Mackinac in connection with the proposed merger. Information about the directors and executive officers of Nicolet and Mackinac will be included in the joint proxy statement/‌prospectus for the proposed transaction filed with the SEC. Information about the directors and executive officers of Nicolet is also included in the proxy statement for its 2021 annual meeting of shareholders, which was filed with the SEC on March 2, 2021. Information about the directors and executive officers of Mackinac is also included in the proxy statement for its 2021 annual meeting of shareholders, which was filed with the SEC on April 22, 2021. Additional information regarding the interests of such participants and other persons who may be deemed participants in the transaction will be included in the joint proxy statement/prospectus and the other relevant documents filed with the SEC when they become available.

 

 

 

MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES 

SELECTED FINANCIAL HIGHLIGHTS

 

		As of and For the				As of and For the				As of and For the
		Period Ending				Year Ending				Period Ending
		March 31,				December 31,				March 31,
(Dollars in thousands, except per share data)		2021				2020				2020
		(Unaudited)								(Unaudited)
Selected Financial Condition Data (at end of period):
Assets		$	1,508,248			$	1,501,730			$	1,356,381
Loans			1,063,756				1,077,592				1,044,177
Investment securities			109,414				111,836				114,734
Deposits			1,273,279				1,258,776				1,095,381
Borrowings			53,459				63,479				67,120
Shareholders' equity			170,176				167,864				160,060
Selected Statements of Income Data (three months and year ended)
Net interest income		$	13,778			$	54,806			$	13,397
Income before taxes			4,278				17,056				3,862
Net income			3,880				13,473				3,051
Income per common share - Basic			.37				1.27				.28
Income per common share - Diluted			.37				1.27				.28
Weighted average shares outstanding - Basic			10,522,899				10,580,044				10,717,967
Weighted average shares outstanding- Diluted			10,522,899				10,580,044				10,817,470
Selected Financial Ratios and Other Data:
Performance Ratios:
Net interest margin			4.52	%			4.37	%			4.60	%
Efficiency ratio			73.19				71.84				73.78
Return on average assets			1.04				.92				.93
Return on average equity			9.31				8.19				7.54
Average total assets		$	1,512,496			$	1,464,674			$	1,321,134
Average total shareholders' equity			169,023				164,505				162,661
Average loans to average deposits ratio			84.26	%			93.34	%			97.30	%
Common Share Data at end of period:
Market price per common share		$	14.02			$	12.76			$	10.45
Book value per common share			16.13				15.99				15.20
Tangible book value per share			13.88				13.71				12.87
Dividends paid per share, annualized			.56				.56				.56
Common shares outstanding			10,550,393				10,500,758				10,533,589
Other Data at end of period:
Allowance for loan losses		$	5,842			$	5,816			$	5,292
Non-performing assets			6,716				7,210				8,644
Allowance for loan losses to total loans			.55	%			.54	%			.51	%
Non-performing assets to total assets			.45	%			.48	%			.64	%
Texas ratio			4.41	%			4.82	%			6.13	%
Number of:
Branch locations			28				28				29
FTE Employees			310				315				316

 

 

MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES 

CONSOLIDATED BALANCE SHEETS

 

		March 31,				December 31,				March 31,
		2021				2020				2020
		(Unaudited)								(Unaudited)
ASSETS
Cash and due from banks		$	239,831			$	218,901			$	97,041
Federal funds sold			3,661				76				31
Cash and cash equivalents			243,492				218,977				97,072
Interest-bearing deposits in other financial institutions			2,427				2,917				8,825
Securities available for sale			109,414				111,836				114,734
Federal Home Loan Bank stock			4,924				4,924				4,924
Loans:
Commercial			818,584				819,907				760,357
Mortgage			226,780				238,705				263,445
Consumer			18,392				18,980				20,375
Total Loans			1,063,756				1,077,592				1,044,177
Allowance for loan losses			(5,842	)			(5,816	)			(5,292	)
Net loans			1,057,914				1,071,776				1,038,885
Premises and equipment			25,010				25,518				24,522
Other real estate held for sale			1,692				1,752				2,228
Deferred tax asset			2,492				3,303				3,154
Deposit based intangibles			4,200				4,368				4,874
Goodwill			19,574				19,574				19,574
Other assets			37,109				36,785				37,589
TOTAL ASSETS		$	1,508,248			$	1,501,730			$	1,356,381
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Deposits:
Noninterest bearing deposits		$	443,956			$	414,804			$	278,191
NOW, money market, interest checking			478,181				450,556				369,003
Savings			137,134				130,755				109,818
CDs<$250,000			190,320				202,266				227,924
CDs>$250,000			10,337				15,224				14,152
Brokered			13,351				45,171				96,293
Total deposits			1,273,279				1,258,776				1,095,381
Federal funds purchased			—				—				22,790
Borrowings			53,459				63,479				67,120
Other liabilities			11,334				11,611				11,030
Total liabilities			1,338,072				1,333,866				1,196,321
SHAREHOLDERS’ EQUITY:
Common stock and additional paid in capital - No par value Authorized - 18,000,000 shares Issued and outstanding - 10,550,393; 10,500,758 and 10,533,589 respectively			127,397				127,164				127,003
Retained earnings			41,721				39,318				33,316
Accumulated other comprehensive income (loss)
Unrealized (losses) gains on available for sale securities			1,641				1,965				151
Minimum pension liability			(583	)			(583	)			(410	)
Total shareholders’ equity			170,176				167,864				160,060
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	1,508,248			$	1,501,730			$	1,356,381

 

 

 

MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

 

		For the Three Months Ended
		March 31,
		2021				2020
		(Unaudited)
INTEREST INCOME:
Interest and fees on loans:
Taxable		$	14,122			$	14,613
Tax-exempt			20				74
Interest on securities:
Taxable			524				621
Tax-exempt			142				87
Other interest income			84				270
Total interest income			14,892				15,665
INTEREST EXPENSE:
Deposits			889				1,927
Borrowings			225				341
Total interest expense			1,114				2,268
Net interest income			13,778				13,397
Provision for loan losses			50				100
Net interest income after provision for loan losses			13,728				13,297
OTHER INCOME:
Deposit service fees			257				403
Income from loans sold on the secondary market			1,302				538
SBA/USDA loan sale gains			433				710
Mortgage servicing amortization			241				189
Net security gains			36				-
Other			129				97
Total other income			2,398				1,937
OTHER EXPENSE:
Salaries and employee benefits			6,824				6,051
Occupancy			1,183				1,124
Furniture and equipment			842				802
Data processing			770				825
Advertising			113				212
Professional service fees			498				498
Loan origination expenses and deposit and card related fees			450				381
Writedowns and losses on other real estate held for sale			(52	)			3
FDIC insurance assessment			140				150
Communications expense			241				213
Other			839				1,113
Total other expenses			11,848				11,372
Income before provision for income taxes			4,278				3,862
Provision for income taxes			398				811
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS		$	3,880			$	3,051
INCOME PER COMMON SHARE:
Basic		$	.37			$	.28
Diluted		$	.37			$	.28

 

MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES

LOAN PORTFOLIO AND CREDIT QUALITY

 

(Dollars in thousands)

 

Loan Portfolio Balances (at end of period):

 

		March 31,				December 31,				March 31,
		2021				2020				2020
			(Unaudited)				(Audited)				(Unaudited)
Commercial Loans:
Real estate - operators of nonresidential buildings		$	137,356			$	138,992			$	136,477
Hospitality and tourism			105,077				100,237				94,734
Lessors of residential buildings			51,288				52,035				48,529
Gasoline stations and convenience stores			27,562				29,046				26,495
Logging			16,756				18,651				21,380
Commercial construction			49,240				47,698				29,971
Other			431,305				433,248				402,771
Total Commercial Loans			818,584				819,907				760,357
1-4 family residential real estate			214,034				227,044				244,059
Consumer			18,392				18,980				20,375
Consumer construction			12,746				11,661				19,386
Total Loans		$	1,063,756			$	1,077,592			$	1,044,177

 

Credit Quality (at end of period):

 

		March 31,				December 31,				March 31,
		2021				2020				2020
			(Unaudited)				(Audited)				(Unaudited)
Nonperforming Assets :
Nonaccrual loans		$	5,024			$	5,458			$	6,416
Loans past due 90 days or more			-				-				-
Restructured loans			-				-				-
Total nonperforming loans			5,024				5,458				6,416
Other real estate owned			1,692				1,752				2,228
Total nonperforming assets		$	6,716			$	7,210			$	8,644
Nonperforming loans as a % of loans			.47	%			.51	%			.61	%
Nonperforming assets as a % of assets			.45	%			.48	%			.64	%
Reserve for Loan Losses:
At period end		$	5,842			$	5,816			$	5,292
As a % of outstanding loans			.55	%			.54	%			.51	%
As a % of nonperforming loans			116.28	%			106.56	%			82.48	%
As a % of nonaccrual loans			116.28	%			106.56	%			82.48	%
Texas Ratio			4.41	%			4.82	%			6.13	%
Charge-off Information (year to date):
Average loans		$	1,078,022			$	1,117,132			$	1,047,144
Net charge-offs (recoveries)		$	24			$	492			$	116
Charge-offs as a % of average
loans, annualized			.01	%			.04	%			.04	%

 

 

MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES QUARTERLY FINANCIAL HIGHLIGHTS

 

		QUARTER ENDED
		(Unaudited)
		March 31,				December 31,				September 30,				June, 30				March 31,
		2021				2020				2020				2020				2020
BALANCE SHEET (Dollars in thousands)
Total loans		$	1,063,756			$	1,077,592			$	1,144,325			$	1,153,790			$	1,044,177
Allowance for loan losses			(5,842	)			(5,816	)			(5,832	)			(5,355	)			(5,292	)
Total loans, net			1,057,914				1,071,776				1,138,493				1,148,435				1,038,885
Total assets			1,508,248				1,501,730				1,522,917				1,518,473				1,356,381
Core deposits			1,249,591				1,198,381				1,195,062				1,122,582				984,936
Noncore deposits			23,688				60,395				85,825				104,970				110,445
Total deposits			1,273,279				1,258,776				1,280,887				1,227,552				1,095,381
Total borrowings			53,459				63,479				63,505				114,466				67,120
Total shareholders' equity			170,176				167,864				166,168				164,157				160,060
Total tangible equity			146,402				143,922				142,057				139,877				135,612
Total shares outstanding			10,550,393				10,500,758				10,533,589				10,533,589				10,533,589
Weighted average shares outstanding			10,522,899				10,536,023				10,533,589				10,533,589				10,717,967
AVERAGE BALANCES (Dollars in thousands)
Assets		$	1,512,496			$	1,505,869			$	1,536,128			$	1,501,423			$	1,321,134
Earning assets			1,235,235				1,252,038				1,303,102				1,290,012				1,171,551
Loans			1,078,022				1,118,665				1,154,670				1,147,620				1,047,144
Noninterest bearing deposits			426,890				422,081				422,134				346,180				284,677
Deposits			1,279,362				1,255,669				1,269,658				1,211,694				1,076,206
Equity			169,023				167,459				165,450				161,811				162,661
INCOME STATEMENT (Dollars in thousands)
Net interest income		$	13,778			$	13,898			$	13,052			$	14,458			$	13,397
Provision for loan losses			50				400				400				100				100
Net interest income after provision			13,728				13,498				12,652				14,358				13,297
Total noninterest income			2,398				2,779				3,116				2,367				1,937
Total noninterest expense			11,848				11,663				11,561				12,352				11,372
Income before taxes			4,278				4,614				4,207				4,373				3,862
Provision for income taxes			398				970				883				919				811
Net income available to common shareholders		$	3,880			$	3,644			$	3,324			$	3,454			$	3,051
Income pre-tax, pre-provision		$	4,328			$	5,014			$	4,607			$	4,473			$	3,962
PER SHARE DATA
Earnings per common share		$	.37			$	.35			$	.32			$	.33			$	.28
Book value  per common share			16.13				15.99				15.78				15.58				15.20
Tangible book value per share			13.88				13.71				13.49				13.28				12.87
Market value, closing price			14.02				12.76				9.65				10.37				10.45
Dividends per share			.14				.14				.14				.14				.14
ASSET QUALITY RATIOS
Nonperforming loans/total loans			.47	%			.51	%			.47	%			.53	%			.61	%
Nonperforming assets/total assets			.45				.48				.48				.55				.64
Allowance for loan losses/total loans			.55				.54				.51				.46				.51
Allowance for loan losses/nonperforming loans			116.28				106.56				107.72				87.44				82.48
Texas ratio			4.41				4.82				4.91				4.22				6.13
PROFITABILITY RATIOS
Return on average assets			1.04	%			.96	%			.86	%			.93	%			.93	%
Return on average equity			9.31				8.66				7.99				8.58				7.54
Net interest margin			4.52				4.42				3.98				4.51				4.60
Average loans/average deposits			84.26				89.09				90.94				94.71				97.30
CAPITAL ADEQUACY RATIOS
Tier 1 leverage ratio			9.63	%			9.63	%			9.20	%			9.45	%			10.20	%
Tier 1 capital to risk weighted assets			14.74				14.48				13.91				13.27				12.89
Total capital to risk weighted assets			15.34				15.07				14.49				13.79				13.41
Average equity/average assets (for the quarter)			11.18				11.12				10.77				10.78				12.31