Exhibit

For Immediate Release

Level One Bancorp, Inc. reports second quarter 2018 net income of $4.0 million, representing $0.53 of earnings per diluted average share

Successful completion of initial public offering in April 2018 resulted in net proceeds of $29.0 million, after deducting underwriting commissions and offering expenses

Farmington Hills, MI – July 30, 2018 – Level One Bancorp, Inc. (“Level One”) (Nasdaq: LEVL) today reported net income of $4.0 million, or $0.53 per diluted share, in the second quarter of 2018. This compares with net income of $3.2 million, or $0.47 per diluted share, in the preceding quarter and $3.3 million, or $0.50 per diluted share, in the second quarter of 2017.

Patrick J. Fehring, President and Chief Executive Officer, commented, "We are pleased to report a solid second quarter with earnings of $4.0 million, or $0.53 per diluted share. These earnings represent year over year loan growth of 11.70% and reflect our strong credit quality. We are committed to providing shareholder returns with a strategy of quality growth."

Second Quarter Financial Highlights


•	Net income was $4.0 million, or $0.53 per diluted share, for the second quarter of 2018


•	Net interest margin was 3.99%, compared to 4.03% in the preceding quarter and 4.32% in the second quarter of 2017


•	Annualized return on average assets was 1.23%, compared to 1.12% in the second quarter of 2017


•	Annualized return on average equity was 11.93%, compared to 12.98% in the second quarter of 2017


•	Total assets increased 9.89% to $1.32 billion at June 30, 2018, compared to $1.20 billion at June 30, 2017


•	Total deposits increased 7.55% to $1.07 billion at June 30, 2018, compared to $990.5 million at June 30, 2017


•	Total loans increased 11.70% to $1.05 billion at June 30, 2018, compared to $936.2 million at June 30, 2017


•	Book value per share increased 13.56% to $18.51 per share compared to $16.30 per share at June 30, 2017


•	Tangible book value per share increased 17.13% to $17.23 per share compared to $14.71 per share at June 30, 2017

Balance Sheet Review

Level One's total assets were $1.32 billion at June 30, 2018, an increase of $22.3 million, or 1.71%, from March 31, 2018, and up $119.1 million, or 9.89%, from $1.20 billion at June 30, 2017.

The investment securities portfolio was $196.0 million at June 30, 2018, an increase of $35.7 million, or 22.26%, from $160.3 million at March 31, 2018, and up $80.5 million, or 69.6%, from $115.6 million at June 30, 2017.

Total loans were $1.05 billion at June 30, 2018, a decrease of $5.6 million, or 0.53%, from $1.05 billion at March 31, 2018, and up $109.6 million, or 11.70%, from $936.2 million at June 30, 2017. The growth in total loans compared to June 30, 2017 was primarily due to growth in our commercial and industrial and commercial real estate loan portfolios.

Total deposits were $1.07 billion at June 30, 2018, a decrease of $47.4 million, or 4.26%, from $1.11 billion at March 31, 2018, and up $74.7 million, or 7.55%, from $990.5 million at June 30, 2017. Total deposit composition at June 30, 2018 consisted of 35.42% of demand deposit accounts, 23.24% of savings and money market accounts and 41.34% of time deposits.

Operating Results

Level One's net interest income before the provision for loan losses increased $288 thousand, or 2.37%, to $12.4 million in the second quarter of 2018, compared to $12.1 million in the preceding quarter, and increased $309 thousand, or 2.55%, compared to $12.1 million in the second quarter of 2017, primarily as a result of increased income on originated loans.

Level One’s net interest margin was 3.99% in the second quarter of 2018, compared to 4.03% in the preceding quarter and 4.32% in the second quarter of 2017, primarily as a result of higher cost of funds.

Level One's second quarter 2018 noninterest income increased $80 thousand, or 5.83%, to $1.5 million in the second quarter of 2018, compared to $1.4 million in the preceding quarter, and decreased $332 thousand, or 18.61%, compared to $1.8 million in the second quarter of 2017. The change in noninterest income compared to the prior period was primarily due to an increase in net gain on sale of residential mortgage loans. The change in noninterest income compared to the second quarter of 2017 was impacted by decreases in other charges and fees and service charges on deposits as well as a decrease in net gain on sales of securities.

Level One’s second quarter 2018 noninterest expenses were $9.7 million, compared to $9.1 million in the preceding quarter and $8.9 million in the second quarter of 2017, primarily as a result of increased salary and employee benefits. The efficiency ratio, which is a measure of operating expenses as a percentage of net interest income and noninterest income, for the second quarter of 2018 was 69.99%, compared to 67.67% for the preceding quarter and 63.72% in the second quarter of 2017.

Level One's income tax provision was $860 thousand, or 17.65% of pretax income, in the second quarter of 2018, as compared to $642 thousand, or 16.85% of pretax income, in the preceding quarter and $1.7 million, or 33.19% of pretax income, in the second quarter of 2017. The decrease in tax expense during the three months ended June 30, 2018, as compared to the second quarter of 2017, is primarily a result of the change in tax rates from 35% to 21% due to the enactment of the Tax Cuts and Jobs Act.

Asset Quality

Level One's asset quality remained solid during the second quarter of 2018. Total nonperforming loans were $11.3 million, or 1.08% of total loans, at June 30, 2018, a decrease of $1.7 million from nonperforming loans of $13.0 million, or 1.23% of total loans, at March 31, 2018, and an increase of $1.6 million from nonperforming loans of $9.7 million, or 1.04% of total loans, at June 30, 2017. Level One had no other real estate owned assets at June 30, 2018 or March 31, 2018, compared to $268 thousand at June 30, 2017. Nonperforming assets, consisting of nonaccrual loans and other real estate owned, as a percentage of total assets were 0.85% at June 30, 2018, compared to 1.00% at March 31, 2018, and 0.83% at June 30, 2017.

In addition, we had $259 thousand in loans 90 days or more past due and still accruing at June 30, 2018, compared to $263 thousand at March 31, 2018 and $662 thousand at June 30, 2017.

Performing troubled debt restructured loans that were not included in nonaccrual loans at June 30, 2018 were $2.5 million, compared to $2.4 million in the preceding quarter and $1.2 million at June 30, 2017. Borrowers who are in financial difficulty and who have been granted concessions that may include interest rate reductions, forbearance agreements, and principal deferral or reduction, are categorized as troubled debt restructured loans.

Net recoveries in the second quarter of 2018 were $669 thousand, or 0.26% of average loans on an annualized basis, compared to $755 thousand of net charge offs, or 0.29% of average loans on an annualized basis, for the preceding quarter and $96 thousand of net recoveries, or 0.04% of average loans on an annualized basis at June 30, 2017.

Level One's second quarter provision for loan losses was a provision benefit of $710 thousand, compared to a provision expense of $554 thousand in the preceding quarter and a provision expense of $68 thousand in the second quarter of 2017. The allowance for loan losses was $11.5 million, or 1.10% of total loans, at June 30, 2018, compared to $11.5 million, or 1.09% of total loans, at March 31, 2018, and $11.4 million, or 1.22% of total loans, at June 30, 2017. As of June 30, 2018, the allowance for loan losses as a percentage of nonperforming loans was 101.67%, compared to 88.67% at March 31, 2018, and 117.36% at June 30, 2017.

Capital

Total shareholders’ equity was $143.4 million at June 30, 2018, an increase of $32.9 million, or 29.79%, compared with $110.5 million at March 31, 2018 and increased $39.2 million, or 37.66%, from $104.2 million at June 30, 2017, primarily as the result of our initial public offering.

Recent Developments

Initial Public Offering: On April 24, 2018, Level One completed its initial public offering. In the offering, Level One sold 1,150,765 shares, including 180,000 shares of common stock pursuant to the exercise in full by the underwriters of their option to purchase additional shares, at an initial public offering price of $28.00 per share. The selling shareholders sold an additional 229,235 shares of common stock in the offering at the initial public offering price. Level One did not receive any proceeds from the sale of shares of common stock sold by the selling shareholders in the offering. The shares began trading on the Nasdaq Global Select Market on Friday, April 20, 2018, under the symbol "LEVL".

Second Quarter Dividend: On June 21, 2018, Level One’s Board of Directors declared a quarterly cash dividend of $0.03 per share. This dividend was paid out on July 15, 2018, to stockholders of record at the close of business on June 30, 2018.

Expansion of Mortgage Division: On July 9, 2018, Level One announced it was doubling the size of its mortgage division with the addition of new mortgage loan officers and support staff.

“We are excited to welcome a team of 30 successful residential mortgage team members to Level One Bank. This strategic action was a great opportunity for Level One to expand our mortgage business with a proven team. We expect the addition of this team will increase our presence in the residential marketplace and add to our fee revenue in future quarters,” commented Level One Bank President and Chief Executive Officer, Patrick J. Fehring.

About Level One Bancorp, Inc.

Level One Bancorp, Inc. is the holding company for Level One Bank, a full-service commercial and consumer bank headquartered in Michigan with assets of approximately $1.32 billion as of June 30, 2018. It operates eleven banking centers throughout southeast Michigan and west Michigan. Level One Bank's success has been recognized both locally and nationally as the U.S. Small Business Administration's (SBA) "Community Lender of the Year" and "Export Finance Lender of the Year" and one of S&P Global's Top 10 "Best-Performing Community Banks" in the nation. Level One's commercial division provides a menu of products including lines of credit, term loans, leases, commercial mortgages, SBA loans, export-import financing, and a full suite of treasury management and private banking services. The consumer division offers personal savings and checking accounts and a complete array of consumer loan products including residential mortgages, home equity, auto, and credit card services. Level One Bank offers a variety of online banking services and a robust mobile banking application for individuals and businesses. Level One Bank offers the sophistication of a big bank, the heart of a community bank, and the spirit of an entrepreneur. For more information, visit www.levelonebank.com.

Forward-Looking Statements

This release contains forward-looking statements that reflect management’s current views of future events and operations. These forward-looking statements are based on the information currently available to the Company as of the date of this release. It is important to note that these forward-looking statements are not guarantees of future performance and involve risk and uncertainties, including, but not limited to, the ability of the Company to implement its strategy and expand its lending operations, changes in interest rates and other general economic, business and political conditions, including changes in the financial markets, as well as other risks described in the Company's filings with the Securities and Exchange Commission. The Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.



Media Contact:	Investor Relations Contact:
Nicole Ransom	Peter Root
(248) 538-2183	(248) 538-2186



Summary Consolidated Financial Information
(Unaudited)	As of or for the quarter ended,
(Dollars in thousands, except per share data)	June 30, 2018			March 31, 2018			December 31, 2017			September 30, 2017			June 30, 2017
Earnings Summary
Interest income	$	15,380		$	14,774		$	14,378		$	13,752		$	14,034
Interest expense	2,965			2,647			2,374			2,075			1,928
Net interest income	12,415			12,127			12,004			11,677			12,106
Provision for loan losses	(710		)	554			956			194			68
Noninterest income	1,452			1,372			1,395			1,942			1,784
Noninterest expense	9,705			9,135			9,193			9,331			8,851
Income before income taxes	4,872			3,810			3,250			4,094			4,971
Income tax provision	860			642			2,317			1,259			1,650
Net income	$	4,012		$	3,168		$	933		$	2,835		$	3,321
Per Share Data
Basic earnings per common share	$	0.54		$	0.48		$	0.15		$	0.44		$	0.52
Diluted earnings per common share	0.53			0.47			0.14			0.43			0.50
Book value per common share	18.51			16.78			16.78			16.74			16.30
Tangible book value per share ⁽¹⁾	17.23			15.27			15.21			15.16			14.71
Shares outstanding (in thousands)	7,749			6,585			6,435			6,392			6,392
Average basic common shares (in thousands)	7,456			6,539			6,403			6,392			6,391
Average diluted common shares (in thousands)	7,613			6,699			6,630			6,610			6,606
Selected Period End Balances
Total assets	$	1,322,913		$	1,300,629		$	1,301,291		$	1,266,919		$	1,203,853
Securities available-for-sale	196,047			160,349			150,969			141,700			115,581
Total loans	1,045,789			1,051,354			1,034,923			980,721			936,218
Total deposits	1,065,216			1,112,644			1,120,382			1,069,874			990,470
Total liabilities	1,179,468			1,190,106			1,193,331			1,159,934			1,099,647
Total shareholders' equity	143,445			110,523			107,960			106,985			104,206
Tangible shareholders' equity ⁽¹⁾	133,501			100,524			97,906			96,872			94,035
Performance and Capital Ratios
Return on average assets (annualized)	1.23		%	1.00		%	0.29		%	0.94		%	1.12		%
Return on average equity (annualized)	11.97			11.64			3.40			10.58			13.02
Net interest margin (fully taxable equivalent)⁽²⁾	3.99			4.03			4.01			4.05			4.32
Total shareholders' equity to total assets	10.84			8.50			8.30			8.44			8.66
Tangible equity to tangible assets ⁽¹⁾	10.17			7.79			7.58			7.71			7.88
Common equity tier 1 capital ⁽³⁾	12.36			9.47			9.10			9.33			9.50
Tier 1 leverage ratio ⁽³⁾	10.83			8.15			7.92			8.14			7.98
Tier 1 risk-based capital ⁽³⁾	12.36			9.47			9.10			9.33			9.50
Total risk-based capital ⁽³⁾	13.38			11.87			11.55			11.86			12.15
Asset Quality Ratios:
Net charge-offs (recoveries) to average loans	(0.26		)%	0.29		%	0.35		%	(0.01		)%	(0.04		)%
Nonperforming assets as a percentage of total assets	0.85			1.00			1.13			1.26			0.83
Nonperforming loans as a percent of total loans	1.08			1.23			1.36			1.59			1.04
Allowance for loan losses as a percentage of period-end loans	1.10			1.09			1.13			1.19			1.22
Allowance for loan losses as a percentage of nonperforming loans	101.67			88.67			83.38			74.38			117.36
Allowance for loan losses as a percentage of nonperforming loans, excluding allowance allocated to loans accounted for under ASC 310-30	92.93			80.36			75.68			66.62			104.87

⁽¹⁾ See section entitled "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" below.

⁽²⁾ Presented on a tax equivalent basis using a 35% tax rate for 2017 time periods and 21% tax rate for 2018 time periods.

⁽³⁾ Capital ratios for June 30, 2018 are Level One Bank capital ratios.

GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

Some of the financial measures included in this earnings release are not measures of financial performance recognized by GAAP. These non-GAAP financial measures include tangible shareholders' equity, tangible book value per share and the ratio of tangible shareholders' equity to tangible assets. Our management uses these non-GAAP financial measures in its analysis of our performance, and we believe financial analysts and others frequently use these measures, and other similar measures, to evaluate capital adequacy. We calculate: (i) tangible shareholders' equity as total shareholders' equity less core deposit intangibles and goodwill; (ii) tangible book value per share as tangible shareholders' equity divided by shares of common stock outstanding; and (iii) tangible assets as total assets, less core deposit intangibles and goodwill.

The following presents these non-GAAP financial measures along with their most directly comparable financial measure calculated in accordance with GAAP:



Reconciliation of Non-GAAP Financial Measures
(Unaudited)	As of
(Dollars in thousands, except per share data)	June 30, 2018			March 31, 2018			December 31, 2017			September 30, 2017			June 30, 2017

Total shareholders' equity	$	143,445		$	110,523		$	107,960		$	106,985		$	104,206
Less:
Goodwill	9,387			9,387			9,387			9,387			9,387
Core deposit intangibles	557			612			667			726			784
Tangible shareholders' equity	$	133,501		$	100,524		$	97,906		$	96,872		$	94,035

Shares outstanding (in thousands)	7,749			6,585			6,435			6,392			6,392
Tangible book value per share	$	17.23		$	15.27		$	15.21		$	15.16		$	14.71

Total assets	$	1,322,913		$	1,300,629		$	1,301,291		$	1,266,919		$	1,203,853
Less:
Goodwill	9,387			9,387			9,387			9,387			9,387
Core deposit intangibles	557			612			667			726			784
Tangible assets	$	1,312,969		$	1,290,630		$	1,291,237		$	1,256,806		$	1,193,682

Tangible equity to tangible assets	10.17		%	7.79		%	7.58		%	7.71		%	7.88		%



Consolidated Balance Sheets
(Unaudited)	As of
	June 30,		March 31,		December 31,		June 30,
(Dollars in thousands, except share data)	2018		2018		2017		2017

Assets
Cash and cash equivalents	$	34,767	$	39,882	$	63,661	$	103,444
Securities available-for-sale	196,047		160,349		150,969		115,581
Federal Home Loan Bank stock	8,303		8,303		8,303		8,303
Mortgage loans held for sale, at fair value	3,991		1,871		4,548		3,566
Loans:
Originated loans	946,724		946,179		920,895		803,573
Acquired loans	99,065		105,175		114,028		132,645
Total loans	1,045,789		1,051,354		1,034,923		936,218
Less: Allowance for loan losses	(11,465)		(11,506)		(11,713)		(11,404)
Net loans	1,034,324		1,039,848		1,023,210		924,814
Premises and equipment, net	13,144		13,282		13,435		13,752
Goodwill	9,387		9,387		9,387		9,387
Other intangible assets, net	557		612		667		784
Bank-owned life insurance	11,703		11,622		11,542		11,376
Income tax benefit	2,510		3,026		3,102		3,565
Other assets	8,180		12,447		12,467		9,281
Total assets	$	1,322,913	$	1,300,629	$	1,301,291	$	1,203,853
Liabilities
Deposits:
Noninterest-bearing demand deposits	$	320,213	$	298,917	$	324,923	$	326,472
Interest-bearing demand deposits	57,060		68,479		62,644		60,162
Money market and savings deposits	247,542		278,042		289,363		244,001
Time deposits	440,401		467,206		443,452		359,835
Total deposits	1,065,216		1,112,644		1,120,382		990,470
Borrowings	86,594		52,783		47,833		82,005
Subordinated notes	14,867		14,853		14,844		14,815
Other liabilities	12,791		9,826		10,272		12,357
Total liabilities	1,179,468		1,190,106		1,193,331		1,099,647
Shareholders' equity
Common stock:
Authorized - 20,000,000 shares at 6/30/18, 3/31/2018, 12/31/2017 and 6/30/2017
Issued and outstanding - 7,748,641 shares at 6/30/2018, 6,584,676 shares at 3/31/2018, 6,435,461 shares at 12/31/2017 and 6,392,041 shares at 6/30/2017	90,201		60,886		59,511		58,755
Retained earnings	56,383		52,568		49,232		45,464
Accumulated other comprehensive loss, net of tax	(3,139)		(2,931)		(783)		(13)
Total shareholders' equity	143,445		110,523		107,960		104,206
Total liabilities and shareholders' equity	$	1,322,913	$	1,300,629	$	1,301,291	$	1,203,853



Consolidated Statements of Income
(Unaudited)
	Three months ended							Six months ended
	June 30,			March 31,		June 30,		June 30,			June 30,
(In thousands, except per share data)	2018			2018		2017		2018			2017
Interest income
Originated loans, including fees	$	11,833		$	11,178	$	9,739	$	23,011		$	19,093
Acquired loans, including fees	2,293			2,426		3,438		4,719			6,831
Securities:
Taxable	667			574		402		1,241			816
Tax-exempt	380			351		210		731			381
Federal funds sold and other	207			245		245		452			360
Total interest income	15,380			14,774		14,034		30,154			27,481
Interest Expense
Deposits	2,487			2,178		1,451		4,665			2,728
Borrowed funds	225			219		224		444			400
Subordinated notes	253			250		253		503			503
Total interest expense	2,965			2,647		1,928		5,612			3,631
Net interest income	12,415			12,127		12,106		24,542			23,850
Provision for loan losses	(710		)	554		68		(156		)	266
Net interest income after provision for loan losses	13,125			11,573		12,038		24,698			23,584
Noninterest income
Service charges on deposits	618			642		718		1,260			1,298
Net gain on sale of securities	—			—		58		—			58
Net gain on sale of residential mortgage loans	404			236		413		640			712
Net gain on sale of commercial loans	11			—		—		11			146
Other charges and fees	419			494		595		913			950
Total noninterest income	1,452			1,372		1,784		2,824			3,164
Noninterest expense
Salary and employee benefits	6,169			5,956		5,319		12,125			10,590
Occupancy and equipment expense	1,074			1,046		1,012		2,120			2,024
Professional service fees	471			266		540		737			1,080
Marketing expense	291			142		232		433			479
Printing and supplies expense	112			104		121		216			234
Data processing expense	511			436		479		947			892
Other expense	1,077			1,185		1,148		2,262			2,229
Total noninterest expense	9,705			9,135		8,851		18,840			17,528
Income before income taxes	4,872			3,810		4,971		8,682			9,220
Income tax provision	860			642		1,650		1,502			3,147
Net income	$	4,012		$	3,168	$	3,321	$	7,180		$	6,073
Earnings per common share:
Basic	$	0.54		$	0.48	$	0.52	$	1.02		$	0.95
Diluted	$	0.53		$	0.47	$	0.50	$	1.00		$	0.92
Average common shares outstanding - basic	7,456			6,539		6,391		7,050			6,380
Average common shares outstanding - diluted	7,613			6,699		6,606		7,211			6,597



Net Interest Income and Net Interest Margin
(Unaudited)	For the three months ended,
	June 30, 2018							March 31, 2018							June 30, 2017
(Dollars in thousands)	Average Balance			Interest (1)		Average Rate (2)		Average Balance			Interest (1)		Average Rate (2)		Average Balance			Interest (1)		Average Rate (2)
Interest-earning assets:
Gross loans (3)	$	1,045,715		$	14,126	5.42	%	$	1,037,045		$	13,604	5.32	%	$	954,665		$	13,177	5.54	%
Investment securities (4):
Taxable	114,957			667		2.33		102,135			574		2.28		79,488			402		2.03
Tax-exempt	58,976			380		3.10		54,996			351		3.16		33,892			210		3.66
Interest earning cash balances	25,828			119		1.85		27,090			106		1.59		59,377			161		1.09
Federal Home Loan Bank Stock	8,303			88		4.25		8,303			139		6.78		8,303			84		4.06
Total interest-earning assets	1,253,779			15,380		4.94	%	1,229,569			14,774		4.90	%	1,135,725			14,034		4.99	%
Non-earning assets:
Cash and due from banks	17,800							18,531							19,238
Premises and equipment	12,621							13,362							15,235
Goodwill	9,387							9,387							9,387
Other intangible assets, net	589							644							820
Bank-owned life insurance	11,650							11,570							11,323
Allowance for loan losses	(11,473		)					(11,822		)					(11,520		)
Other non-earning assets	7,839							12,195							10,614
Total assets	$	1,302,192						$	1,283,436						$	1,190,822
Interest-bearing liabilities:
Interest-bearing demand deposits	$	64,394		$	48	0.30	%	$	63,501		$	51	0.33	%	$	58,081		$	39	0.27	%
Money market and savings deposits	276,496			678		0.98		273,699			548		0.81		264,691			405		0.61
Time deposits	445,894			1,761		1.58		456,555			1,579		1.40		359,052			1,007		1.12
Borrowings	48,604			225		1.86		56,819			219		1.56		84,838			224		1.06
Subordinated notes	14,859			253		6.83		14,844			250		6.83		14,806			253		6.85
Total interest-bearing liabilities	850,247			2,965		1.40	%	865,418			2,647		1.24	%	781,468			1,928		0.99	%
Noninterest-bearing liabilities and shareholders' equity:
Noninterest bearing demand deposits	306,547							298,681							297,565
Other liabilities	10,923							8,931							9,485
Shareholders' equity	134,475							110,406							102,304
Total liabilities and shareholders' equity	$	1,302,192						$	1,283,436						$	1,190,822
Net interest income				$	12,415						$	12,127						$	12,106
Interest spread						3.54	%						3.66	%						4.00	%
Net interest margin (5)						3.97							4.00							4.28
Tax equivalent effect						0.02							0.03							0.04
Net interest margin on a fully tax equivalent basis						3.99							4.03							4.32

(1) Interest income is shown on actual basis and does not include taxable equivalent adjustments.

(2) Average rates and yields are presented on an annual basis and includes a taxable equivalent adjustment to interest income of $76 thousand, $78 thousand and $99 thousand on tax-exempt securities for the three months ended June 30, 2018, March 31, 2018 and June 30, 2017, respectively, using the statutory tax rate of 21% for the 2018 periods and 35% for the 2017 period.

(3) Includes nonaccrual loans.

(4) For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.

(5) Net interest margin represents net interest income divided by average total interest-earning assets.



	For the six months ended,
	June 30, 2018							June 30, 2017
(Dollars in thousands)	Average Balance			Interest (1)		Average Rate (2)		Average Balance			Interest (1)		Average Rate (2)
Interest-earning assets:
Gross loans (3)	$	1,041,404		$	27,730	5.37	%	$	958,054		$	25,924	5.46	%
Investment securities (4):
Taxable	108,581			1,241		2.31		78,979			816		2.08
Tax-exempt	56,997			731		3.12		31,313			381		3.62
Interest earning cash balances	26,455			225		1.71		43,496			220		1.02
Federal Home Loan Bank Stock	8,303			227		5.51		8,022			140		3.52
Total interest-earning assets	1,241,740			30,154		4.92	%	1,119,864			27,481		4.98	%
Non-earning assets:
Cash and due from banks	18,163							18,789
Premises and equipment	12,990							15,432
Goodwill	9,387							9,387
Other intangible assets, net	616							849
Company-owned life insurance	11,610							11,282
Allowance for loan losses	(11,646		)					(11,345		)
Other non-earning assets	10,006							10,481
Total assets	$	1,292,866						$	1,174,739
Interest-bearing liabilities:
Deposits:
Interest-bearing demand deposits	$	63,950		$	99	0.31	%	$	57,774		$	78	0.27	%
Money market and savings deposits	275,105			1,226		0.90		275,860			779		0.57
Time deposits	451,195			3,340		1.49		338,485			1,871		1.11
Borrowings	52,689			444		1.70		95,085			400		0.85
Subordinated notes	14,852			503		6.83		14,799			503		6.85
Total interest-bearing liabilities	857,791			5,612		1.32	%	782,003			3,631		0.94	%
Noninterest-bearing liabilities and shareholders' equity:
Noninterest bearing demand deposits	302,635							283,007
Other liabilities	9,933							9,103
Shareholders' equity	122,507							100,626
Total liabilities and shareholders' equity	$	1,292,866						$	1,174,739
Net interest income				$	24,542						$	23,850
Interest spread						3.60	%						4.04	%
Net interest margin (5)						3.99							4.29
Tax equivalent effect						0.02							0.03
Net interest margin on a fully tax equivalent basis						4.01							4.32

(1) Interest income is shown on actual basis and does not include taxable equivalent adjustments.

(2) Average rates and yields are presented on an annual basis and includes a taxable equivalent adjustment to interest income of $150 thousand and $181 thousand on tax-exempt securities for the six months ended June 30, 2018 and June 30, 2017, respectively, using the statutory tax rate of 21% for the 2018 period and 35% for the 2017 period.

(3) Includes nonaccrual loans.

(5) Net interest margin represents net interest income divided by average total interest-earning assets.



Loan Composition (Unaudited)	As of
	June 30,		March 31,		December 31,		September 30,		June 30,
(Dollars in thousands)	2018		2018		2017		2017		2017
Commercial real estate
Non-owner occupied	$	361,341	$	360,014	$	343,420	$	312,644	$	322,361
Owner-occupied	172,615		172,608		168,342		156,690		159,932
Total commercial real estate	533,956		532,622		511,762		469,334		482,293
Commercial and industrial	363,239		371,464		377,686		380,512		330,114
Residential real estate	147,763		146,436		144,439		130,117		122,427
Consumer	831		832		1,036		758		1384
Total loans	$	1,045,789	$	1,051,354	$	1,034,923	$	980,721	$	936,218



Impaired Assets (Unaudited)	As of
	June 30,		March 31,		December 31,		September 30,		June 30,
(Dollars in thousands)	2018		2018		2017		2017		2017
Nonaccrual loans
Commercial real estate	$	2,557	$	1,946	$	2,257	$	1,998	$	106
Commercial and industrial	5,983		8,192		9,024		11,911		7,754
Residential real estate	2,737		2,838		2,767		1,727		1,857
Total nonaccrual loans	11,277		12,976		14,048		15,636		9,717
Other real estate owned	—		—		652		384		268
Total nonperforming assets	11,277		12,976		14,700		16,020		9,985
Performing troubled debt restructurings
Commercial real estate	1,517		1,525		—		287		—
Commercial and industrial	578		582		961		975		988
Residential real estate	364		258		261		1,049		247
Total performing troubled debt restructurings	2,459		2,365		1,222		2,311		1,235
Total impaired assets	$	13,736	$	15,341	$	15,922	$	18,331	$	11,220

Loans 90 days or more past due and still accruing	$	259	$	263	$	440	$	486	$	662