Unassociated Document

Exhibit 99.1

Heritage Commerce Corp Reports Second Quarter Results

San Jose, CA – July 24, 2008 — Heritage Commerce Corp (Nasdaq: HTBK), parent company of Heritage Bank of Commerce, today reported a second quarter net loss of $3.1 million, or ($0.26) per diluted share, compared with net income of $4.0 million, or $0.33 per diluted share, for the same quarter a year ago. The second quarter net loss was primarily the result of the previously announced $5.1 million provision for loan losses for loans to one customer, William J. "Boots" Del Biaggio III. For the first half of 2008, the Company reported a net loss of $1.4 million, or ($0.11) per diluted share, compared to net income of $8.0 million, or $0.68 per diluted share, in the first half of 2007.

“When we recognized that there was a substantial problem with the validity of the collateral on our loan relationship with Boots Del Biaggio, we took the conservative approach by immediately placing all of his loans on nonaccrual and increasing our loan loss provision for the entire $5.1 million in loans outstanding to him,” said Walter Kaczmarek, President and Chief Executive Officer. “We are pursuing all avenues for recovery of these funds from the borrower, as well as other parties. Due to the problems with the securities pledged as collateral for the majority of the debt and the bankruptcy filing of the borrower, we do not expect a quick resolution to this issue.”

Boots Del Biaggio is not, and has not been, a director, officer or employee of Heritage Bank of Commerce or Heritage Commerce Corp for over ten years. He is the son of William J. Del Biaggio, Jr., an executive officer and former director with Heritage Bank of Commerce and Heritage Commerce Corp.

“Despite the Boots Del Biaggio loans, we have generated strong loan growth by gaining traction in the new markets we entered last year and building strength in our traditional footprint in the greater Silicon Valley market,” said Mr. Kaczmarek. “The outstanding banking team we have built over the past few years remains focused and has gained market share by filling the pipeline with new business. Their performance has exceeded our expectations.”

Second Quarter 2008 Financial Highlights

¨	As of June 30, 2008, total assets were $1.49 billion, an increase of 10% from June 30, 2007 and 5% from March 31, 2008.

¨	Loans increased to $1.21 billion, an increase of $283 million or 31% from the second quarter of 2007 and an increase of $77 million or 7% compared to March 31, 2008. Loans increased $173 million or 17% in the first six months of 2008 from $1.04 billion at December 31, 2007.

¨	Commercial loans accounted for 42% of the loan portfolio at June 30, 2008, compared to 37% a year ago.

¨	The Company has no exposure to subprime and mortgage company loans.

¨	Deposits were $1.16 billion, an increase of $40 million or 4% from the second quarter of 2007 and a decrease of $12 million or 1% from March 31, 2008.

¨	The leverage ratio was 8.36% at June 30, 2008.

¨	Heritage Commerce Corp completed its previously announced stock repurchase program during the second quarter of 2008 by repurchasing 394,387 shares of its common stock.

Balance Sheet and Capital Management

Heritage’s assets totaled $1.49 billion at June 30, 2008, compared to $1.35 billion a year ago and $1.41 billion at March 31, 2008. Total loans, excluding loans held for sale, were $1.21 billion at June 30, 2008, compared to $0.93 billion at June 30, 2007 and $1.13 billion at March 31, 2008. Deposits totaled $1.16 billion at June 30, 2008, compared to $1.12 billion at June 30, 2007 and $1.17 billion at March 31, 2008.

The Company’s loan portfolio at June 30, 2008 consisted of 42% commercial loans, 33% commercial real estate mortgage loans, 20% land and construction and 5% consumer and other loans. Of the land and construction portfolio, 58% was secured by “for sale” residential properties and 42% was secured by commercial properties and owner-occupied housing properties.

The Company’s deposits increased by 4% over the same period in the previous year, which included a $43 million increase in Brokered deposits. The decrease in savings and money market balances was primarily due to a reduction of 1031 exchange company deposits which had a significant reduction in business due to market conditions.

During the second quarter of 2008, the Company repurchased 394,387 shares of its common stock at an average price of $17.47 and a cost of $6.9 million. This, along with the second quarter net loss, reduced shareholders’ equity to $142 million, or $12.01 book value per share and $7.96 tangible book value per share, at June 30, 2008. Shareholders’ equity was $170 million, or $12.72 book value per share and $9.12 tangible book value per share at June 30, 2007, and $153 million, or $12.55 book value per share and $8.61 tangible book value per share, at March 31, 2008. The Company adopted the guidance in Emerging Issues Task Force (EITF) Issue 06-4, Accounting for Deferred Compensation and Postretirement Benefit Aspects of Endorsement Split-Dollar Life Insurance Arrangements, on January 1, 2008. The adoption of EITF 06-4 resulted in a cumulative effect adjustment to decrease retained earnings by $3.2 million, net of deferred income taxes, at January 1, 2008.

The share repurchases completed the previously announced common stock repurchase program. Shares were repurchased on the open market using available cash rather than debt. The Company’s Board of Directors had authorized the repurchase of up to $30 million of its common stock over two years. From August 13, 2007 through May 27, 2008, the Company bought back 1,645,607 shares at a cost of $29.9 million.

Credit Quality

Nonperforming assets (NPAs) totaled $14.3 million, or 0.96% of total assets, at June 30, 2008, compared to $6.3 million, or 0.47% of total assets, at June 30, 2007 and $5.4 million, or 0.38% of total assets, at March 31, 2008. Excluding the $5.1 million of Boots Del Biaggio loans and the $2.0 million SBA guaranteed portion of SBA loans, nonperforming assets were $7.3 million or 0.49% of total assets at June 30, 2008. At June 30, 2007, nonperforming assets were $6.0 million or 0.45% of total assets, excluding the $0.3 million SBA guaranteed portion of SBA loans. At March 31, 2008, nonperforming assets were $3.4 million or 0.24% of total assets, excluding the $2.0 million SBA guaranteed portion of SBA loans.

Net charge-offs in the second quarter of 2008 were $370,000 or 0.13% of average loans, compared to net charge-offs of $35,000 or 0.02% of average loans in the second quarter of 2007 and $434,000 or 0.16% of average loans in the first quarter of 2008.

The Company’s provision for loan losses in the second quarter of 2008 was $7.8 million, compared to no provision in the second quarter of 2007 and $1.7 million in the first quarter of 2008. The second quarter 2008 provision for loan losses includes $5.1 million for the Boots Del Biaggio loans. The rest of the second quarter 2008 provision is primarily due to $77 million of loan growth and additional risk in the loan portfolio.

When excluding the $5.1 million specific loss allocation for the Boots Del Biaggio loans, the allowance for loan losses at June 30, 2008 was $15.8 million, or 1.30% of total loans, and represented 183% of nonperforming loans. The allowance for loan losses at June 30, 2007 was $11.1 million, or 1.20% of total loans, and represented 192% of nonperforming loans. The allowance for loan losses at March 31, 2008 was $13.4 million, or 1.19% of total loans, and represented 293% of nonperforming loans.

Operating Results

Comparison of 2008 operating results to 2007 includes the effects of acquiring Diablo Valley Bank (“DVB”) on June 20, 2007. In the DVB transaction, the Company acquired $269 million of tangible assets, including $204 million of net loans, and assumed $249 million of deposits.

Net interest income increased 5% to $13.0 million for the second quarter of 2008 from $12.4 million for the second quarter of 2007 and decreased 1% from $13.1 million for the first quarter of 2008. For the first six months of 2008, net interest income increased 8% to $26.1 million from $24.1 million for the same period of 2007, primarily due to an increase in interest-earning assets. The net interest margin was 4.00% for the second quarter of 2008, compared to 5.11% for the second quarter of 2007 and 4.32% for the first quarter of 2008. For the first six months of 2008, the net interest margin decreased to 4.15% from 5.09% for the first six months of 2007. Decreases in the net interest margin are primarily the result of the 325 basis point decline in short-term interest rates from September 2007 through March 2008.

Noninterest income was $1.8 million for the second quarter of 2008, compared to $2.3 million for the second quarter of 2007 and $1.5 million for the first quarter of 2008. In the first six months of 2008, noninterest income was $3.3 million, compared to $4.8 million in the first six months a year ago. Noninterest income declined in 2008 primarily due to the strategic shift to retain, rather than sell, SBA loan production. Gains on sales of SBA loans were $695,000 in the second quarter of 2007 and $1.7 million in the first six months of 2007, with no corresponding income in 2008. Noninterest income was primarily comprised of loan servicing income, the increase in cash surrender value of Company owned life insurance, and service charges on deposit accounts.

Noninterest expense was $11.0 million for the second quarter of 2008, compared to $8.5 million in the second quarter of 2007 and $10.6 million in the first quarter of 2008. In the first six months of 2008, noninterest expense was $21.6 million, compared to $16.8 million in the first six months a year ago. Operating expenses increased in 2008 due to the acquisition of DVB, the new office in Walnut Creek, and the addition of experienced banking professionals.

The efficiency ratio was 74.51% in the second quarter of 2008, compared to 58.00% in the second quarter of 2007 and 72.38% in the first quarter of 2008. The efficiency ratio for the first six months of 2008 increased to 73.45% from 58.13% a year ago. The efficiency ratio increased in 2008 primarily due to compression of the net interest margin, a decrease in noninterest income and an increase in expenses, as discussed above. The annualized returns on average assets and average equity for the second quarter of 2008 were (0.85%) and (8.34%), compared to 1.50% and 12.17% for the quarter ended June 30, 2007, respectively. Returns on average assets and average equity for the first six months of 2008 were (0.20%) and (1.81%), compared to 1.53% and 12.63% for the first six months of 2007, respectively.

Heritage Commerce Corp, a bank holding company established in February 1998, is the parent company of Heritage Bank of Commerce, established in 1994 and headquartered in San Jose with full-service branches in Los Gatos, Fremont, Danville, Pleasanton, Walnut Creek, Morgan Hill, Gilroy, Mountain View, and Los Altos. Heritage Bank of Commerce is an SBA Preferred Lender with Loan Production Offices in Fresno, Sacramento, Oakland and Santa Rosa, California. For more information, please visit www.heritagecommercecorp.com.

Forward Looking Statement Disclaimer

This release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include, but are not necessarily limited to, the Company’s ability to sustain dividend payments, fluctuations in interest rates and monetary policy established by the Federal Reserve, inflation, government regulations, general economic conditions, competition within the business areas in which the Company is conducting its operations, including the real estate market in California, the ability to recognize identified cost savings, and other factors beyond the Company's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. For a discussion of factors which could cause results to differ, please see the Company's reports on Forms 10-K and 10-Q as filed with the Securities and Exchange Commission and the Company's press releases. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

Member FDIC

	For the Three Months Ended:						Percent Change From:				For the Six Months Ended:
CONSOLIDATED INCOME STATEMENTS	June 30,		March 31,		June 30,		March 31,		June 30,		June 30,		June 30,		Percent
(in $000's, unaudited)	2008		2008		2007		2008		2007		2008		2007		Change
Interest Income	$	18,699	$	19,895	$	18,317		-6%		2%	$	38,594	$	35,551		9%
Interest Expense		5,731		6,791		5,924		-16%		-3%		12,522		11,427		10%
Net Interest Income		12,968		13,104		12,393		-1%		5%		26,072		24,124		8%
Provision for Loan Losses		7,800		1,650		-		-373%		N/A		9,450		(236)		4,104%
Net Interest income after Provision for Loan Losses		5,168		11,454		12,393		-55%		-58%		16,622		24,360		-32%
Noninterest Income:
Gain on Sale of SBA Loans		-		-		695		N/A		-100%		-		1,706		-100%
Servicing Income		377		479		534		-21%		-29%		856		1,050		-18%
Increase in Cash Surrender Value of Life Insurance		418		398		353		5%		18%		816		697		17%
Service Charges and Other Fees on Deposit Accounts		537		415		336		29%		60%		952		610		56%
Other		460		222		344		107%		34%		682		713		-4%
Total Noninterest Income		1,792		1,514		2,262		18%		-21%		3,306		4,776		-31%

Noninterest Expense:
Salaries & Employee Benefits		5,970		6,059		4,685		-1%		27%		12,029		9,573		26%
Occupancy & Equipment		1,044		1,119		889		-7%		17%		2,163		1,764		23%
Other		3,984		3,402		2,926		17%		36%		7,386		5,463		35%
Total Noninterest Expense		10,998		10,580		8,500		4%		29%		21,578		16,800		28%
Income (Loss) Before Income Taxes		(4,038)		2,388		6,155		-269%		-166%		(1,650)		12,336		-113%
Income Tax Expense (Benefit)		(955)		684		2,140		-240%		-145%		(271)		4,288		-106%
Net Income (Loss)	$	(3,083)	$	1,704	$	4,015		-281%		-177%	$	(1,379)	$	8,048		-117%

PER SHARE DATA
(unaudited)
Basic Earnings (Loss) Per Share	$	(0.26)	$	0.14	$	0.34		-286%		-176%	$	(0.11)	$	0.69		-116%
Diluted Earnings (Loss) Per Share	$	(0.26)	$	0.14	$	0.33		-286%		-179%	$	(0.11)	$	0.68		-116%
Common Shares Outstanding at Period End		11,806,167		12,170,346		13,375,163		-3%		-12%		11,806,167		13,375,163		-12%
Book Value Per Share	$	12.01	$	12.55	$	12.72		-4%		-6%	$	12.01	$	12.72		-6%
Tangible Book Value Per Share	$	7.96	$	8.61	$	9.12		-8%		-13%	$	7.96	$	9.12		-13%

KEY FINANCIAL RATIOS
(unaudited)
Annualized Return on Average Equity		-8.34%		4.33%		12.17%		-293%		-169%		-1.81%		12.63%		-114%
Annualized Return on Average Tangible Equity		-12.30%		6.21%		12.65%		-298%		-197%		-2.63%		12.89%		-120%
Annualized Return on Average Assets		-0.85%		0.50%		1.50%		-270%		-157%		-0.20%		1.53%		-113%
Annualized Return on Average Tangible Assets		-0.88%		0.52%		1.50%		-269%		-159%		-0.20%		1.53%		-113%
Net Interest Margin		4.00%		4.32%		5.11%		-7%		-22%		4.15%		5.09%		-18%
Efficiency Ratio		74.51%		72.38%		58.00%		3%		28%		73.45%		58.13%		26%

AVERAGE BALANCES
(in $000's, unaudited)
Average Assets	$	1,456,396	$	1,376,217	$	1,075,271		6%		35%	$	1,415,295	$	1,057,683		34%
Average Tangible Assets	$	1,408,536	$	1,328,133	$	1,070,251		6%		32%	$	1,367,319	$	1,055,059		30%
Average Earning Assets	$	1,304,987	$	1,218,888	$	972,016		7%		34%	$	1,261,938	$	955,874		32%
Average Total Loans	$	1,170,274	$	1,075,605	$	730,337		9%		60%	$	1,122,940	$	715,562		57%
Average Loans Held For Sale	$	-	$	-	$	12,823		N/A		-100%	$	-	$	15,693		-100%
Average Deposits	$	1,169,860	$	1,102,706	$	880,079		6%		33%	$	1,136,283	$	863,422		32%
Average Demand Deposits - Noninterest Bearing	$	260,361	$	249,173	$	223,415		4%		17%	$	254,767	$	220,727		15%
Average Interest Bearing Deposits	$	909,499	$	853,533	$	656,664		7%		39%	$	881,516	$	642,695		37%
Average Interest Bearing Liabilities	$	1,018,685	$	940,498	$	696,773		8%		46%	$	979,591	$	685,412		43%
Average Equity	$	148,660	$	158,428	$	132,347		-6%		12%	$	153,544	$	128,509		19%
AverageTangible Equity	$	100,800	$	110,344	$	127,327		-9%		-21%	$	105,568	$	125,885		-16%

	End of Period:									Percent Change From:
CONSOLIDATED BALANCE SHEETS	June 30,			March 31,			June 30,			March 31,			June 30,
(in $000's, unaudited)	2008			2008			2007			2008			2007
ASSETS
Cash and Due from Banks	$	42,642		$	28,356		$	45,881			50	%		-7	%
Federal Funds Sold		150			100			57,810			50	%		-100	%
Securities Available-for-Sale, at Fair Value		116,594			130,784			169,498			-11	%		-31	%
Loans Held For Sale		-			-			20,018			N/	A		-100	%
Loans:
Commercial Loans		509,887			468,540			344,172			9	%		48	%
Real Estate-Mortgage		403,526			384,060			330,422			5	%		22	%
Real Estate-Land and Construction		243,731			233,073			203,457			5	%		20	%
Home Equity		45,991			42,194			42,474			9	%		8	%
Consumer Loans		4,686			2,848			4,715			65	%		-1	%
Loans		1,207,821			1,130,715			925,240			7	%		31	%
Deferred Loan Costs, net		1,301			1,090			504			19	%		158	%
Loans, Net of Deferred Costs		1,209,122			1,131,805			925,744			7	%		31	%
Allowance for Loan Losses		(20,865	)		(13,434	)		(11,104	)		55	%		88	%
Net Loans		1,188,257			1,118,371			914,640			6	%		30	%
Company Owned Life Insurance		39,819			39,402			37,900			1	%		5	%
Premises & Equipment, Net		9,052			9,193			9,186			-2	%		-1	%
Goodwill		43,181			43,181			43,172			0	%		0	%
Intangible Assets		4,584			4,760			5,031			-4	%		-9	%
Accrued Interest Receivable and Other Assets		42,708			40,580			43,795			5	%		-2	%
Total Assets	$	1,486,987		$	1,414,727		$	1,346,931			5	%		10	%

LIABILITIES & SHAREHOLDERS' EQUITY
Liabilities:
Deposits
Demand Deposits-Noninterest Bearing	$	262,813		$	254,938		$	266,404			3	%		-1	%
Demand Deposits-Interest Bearing		145,151			159,046			162,003			-9	%		-10	%
Savings and Money Market		435,754			494,912			448,528			-12	%		-3	%
Time Deposits, Under $100		33,911			35,095			33,735			-3	%		1	%
Time Deposits, $100 and Over		173,766			161,840			143,544			7	%		21	%
Brokered Deposits		108,623			65,873			65,439			65	%		66	%
Total Deposits		1,160,018			1,171,704			1,119,653			-1	%		4	%
Securities Sold under Agreement to Repurchase		35,000			35,900			10,900			-3	%		221	%
Other Short-term Borrowing		98,000			5,000			-			1860	%		N/	A
Notes Payable To Subsidiary Grantor Trusts		23,702			23,702			23,702			0	%		0	%
Accrued Interest Payable and Other Liabilities		28,518			25,649			22,522			11	%		27	%
Total Liabilities		1,345,238			1,261,955			1,176,777			7	%		14	%

Shareholders' Equity:
Common Stock		75,941			82,120			103,498			-8	%		-27	%
Accumulated Other Comprehensive Loss		(930	)		(145	)		(2,446	)		541	%		-62	%
Retained Earnings		66,738			70,797			69,102			-6	%		-3	%
Total Shareholders' Equity		141,749			152,772			170,154			-7	%		-17	%
Total Liabilities & Shareholders' Equity	$	1,483,987		$	1,414,727		$	1,346,931			5	%		10	%


CREDIT QUALITY DATA
(in $000's, unaudited)
Nonaccrual Loans	$	12,226		$	4,580		$	3,192			167	%		283	%
Loans Over 90 Days Past Due and Still Accruing		1,488			-			2,604			N/	A		-43	%
Total Nonperforming Loans		13,714			4,580			5,796			199	%		137	%
Other Real Estate Owned		580			792			487			-27	%		19	%
Total Nonperforming Assets	$	14,294		$	5,372		$	6,283			166	%		128	%
Net Charge-offs		370			434			35			-15	%		957	%
Net Charge-offs as Percent of Average Loans		0.13	%		0.16	%		0.02	%		-19	%		550	%
Allowance for Loan Losses to Total Loans		1.73	%		1.19	%		1.20	%		45	%		44	%
Allowance for Loan Losses to Total Loans, Excluding
$5.1 Million Specific Loss Allowance for Del Biaggio III Loans		1.30	%		1.19	%		1.20	%		9	%		9	%
Allowance for Loan Losses to Nonperforming Loans		152.14	%		293.32	%		191.58	%		-48	%		-21	%
Nonperforming Assets to Total Assets		0.96	%		0.38	%		0.47	%		153	%		104	%
Nonperforming Loans to Total Loans		1.13	%		0.40	%		0.68	%		183	%		66	%

OTHER PERIOD-END STATISTICS
(unaudited)
Shareholders' Equity / Total Assets		9.53	%		10.80	%		12.63	%		-12	%		-25	%
Loan to Deposit Ratio		104.23	%		96.59	%		82.68	%		8	%		26	%
Noninterest Bearing Deposits / Total Deposits		22.66	%		21.76	%		23.79	%		4	%		-5	%
Leverage Ratio		8.36	%		9.63	%		14.29	%		-13	%		-41	%


	For the Three Months Ended							For the Three Months Ended
	June 30, 2008							June 30, 2007
			Interest		Average					Interest		Average
NET INTEREST INCOME AND NET INTEREST MARGIN	Average		Income/		Yield/			Average		Income/		Yield/
(in $000's, unaudited)	Balance		Expense		Rate			Balance		Expense		Rate
Assets:
Loans, gross	$	1,170,274	$	17,250		5.93	%	$	743,160	$	15,589		8.41	%
Securities		131,428		1,433		4.39	%		171,896		1,982		4.62	%
Interest bearing deposits in other financial institutions		470		2		1.71	%		3,243		40		4.95	%
Federal funds sold		2,815		14		2.00	%		53,717		706		5.27	%
Total interest earning assets		1,304,987	$	18,699		5.76	%		972,016	$	18,317		7.56	%
Cash and due from banks		35,476							33,305
Premises and equipment, net		9,144							3,111
Goodwill and other intangible assets		47,860							5,020
Other assets		58,929							61,819
Total assets	$	1,456,396						$	1,075,271

Liabilities and shareholders' equity:
Deposits:
Demand, interest bearing	$	155,130	$	367		0.95	%	$	141,230	$	780		2.22	%
Savings and money market		467,428		1,862		1.60	%		328,580		2,456		3.00	%
Time deposits, under $100		34,507		271		3.16	%		30,872		301		3.91	%
Time deposits, $100 and over		174,534		1,363		3.14	%		102,284		1,067		4.18	%
Brokered time deposits		77,900		793		4.09	%		53,698		617		4.61	%
Notes payable to subsidiary grantor trusts		23,702		526		8.93	%		23,702		583		9.87	%
Securities sold under agreement to repurchase		35,890		255		2.86	%		14,820		98		2.65	%
Other short-term borrowings		49,594		294		2.38	%		1,587		22		5.56	%
Total interest bearing liabilities		1,018,685	$	5,731		2.26	%		696,773	$	5,924		3.41	%
Demand, noninterest bearing		260,361							223,415
Other liabilities		28,690							22,736
Total liabilities		1,307,736							942,924
Shareholders' equity:		148,660							132,347
Total liabilities and shareholders' equity	$	1,456,396						$	1,075,271

Net interest income / margin			$	12,968		4.00	%			$	12,393		5.11	%

	For the Six Months Ended							For the Six Months Ended
	June 30, 2008							June 30, 2007
			Interest		Average					Interest		Average
NET INTEREST INCOME AND NET INTEREST MARGIN	Average		Income/		Yield/			Average		Income/		Yield/
(in $000's, unaudited)	Balance		Expense		Rate			Balance		Expense		Rate
Assets:
Loans, gross	$	1,122,940	$	35,605		6.38	%	$	731,255	$	30,259		8.34	%
Securities		134,619		2,934		4.38	%		172,603		3,934		4.60	%
Interest bearing deposits in other financial institutions		768		9		2.36	%		2,936		73		5.01	%
Federal funds sold		3,611		46		2.56	%		49,080		1,285		5.28	%
Total interest earning assets		1,261,938	$	38,594		6.15	%		955,874	$	35,551		7.50	%
Cash and due from banks		37,017							34,311
Premises and equipment, net		9,208							2,807
Goodwill and other intangible assets		47,976							2,624
Other assets		59,156							62,067
Total assets	$	1,415,295						$	1,057,683

Liabilities and shareholders' equity:
Deposits:
Demand, interest bearing	$	151,800	$	968		1.28	%	$	138,876	$	1,545		2.24	%
Savings and money market		472,009		4,751		2.02	%		323,549		4,740		2.95	%
Time deposits, under $100		34,566		591		3.44	%		30,929		590		3.85	%
Time deposits, $100 and over		160,633		2,753		3.45	%		101,741		2,079		4.12	%
Brokered time deposits		62,508		1,311		4.22	%		47,600		1,052		4.46	%
Notes payable to subsidiary grantor trusts		23,702		1,083		9.19	%		23,702		1,164		9.90	%
Securities sold under agreement to repurchase		29,027		410		2.84	%		18,218		235		2.60	%
Other short-term borrowings		45,346		655		2.90	%		797		22		5.57	%
Total interest bearing liabilities		979,591	$	12,522		2.57	%		685,412	$	11,427		3.36	%
Demand, noninterest bearing		254,767							220,727
Other liabilities		27,393							23,035
Total liabilities		1,261,751							929,174
Shareholders' equity:		153,544							128,509
Total liabilities and shareholders' equity	$	1,415,295						$	1,057,683

Net interest income / margin			$	26,072		4.15	%			$	24,124		5.09	%