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## CONSUMER LENDING 

In 2003, total consumer loans, including home equity, auto, boat and recreational vehicle loans, grew to $259.7 million, an increase of 108.1 percent from December 31, 2002. We also expanded our home equity lines of credit beyond our traditional markets of Michigan and Indiana to 38 additional states. In 2004, we plan to roll out home equity lines of credit to our wholesale lending customers. 

Our business development efforts in 2003 targeted indirect lending customers, a segment we will continue to pursue in 2004. Going forward, we hope to increase originations through improved technology and refocused customer service to cross sell consumer loans in our banking centers. 

## COMMERCIAL LENDING 

The primary focus of our commercial lending is to help businesses build, buy or refinance property in our banking markets. In 2003, we expanded staff both in Michigan and Indiana to meet the commercial real estate needs generated by our growing banking network. 

We closed $239.5 million in commercial real estate loans in 2003, bringing our portfolio to $548.4 million, an increase of 23.2 percent from December 31, 2002. We had $7.8 million in non-real estate commercial loans at December 31, 2003. 

## CONSTRUCTION LENDING 

Our leadership in the mortgage business has naturally led us to develop strong relationships with the leading builders in our retail markets. In 2003, we expanded our construction loan capabilities to all 48 contiguous states. 

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## AT HEART WE’RE A COMMUNITY BANK, DEDICATED TO THE COMMUNITIES WE SERVE. 

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