Mercantile Bank Corporation Reports Second Quarter 2012 Results

Full repurchase of TARP preferred stock, improved asset quality, increased profitability and growth of loan portfolio

Jul 17, 2012, 06:00 ET from Mercantile Bank Corporation


GRAND RAPIDS, Mich., July 17, 2012  /PRNewswire/ -- Mercantile Bank Corporation (NASDAQ: MBWM) ("Mercantile") reported net income attributable to common shares of $3.3 million, or $0.36 per diluted share, for the second quarter of 2012, compared with net income attributable to common shares of $2.4 million, or $0.27 per diluted share, for the prior-year period. On a pre-tax basis, income was $5.8 million in the second quarter of 2012 compared to $2.7 million in the prior-year second quarter, an increase of 115 percent.

The second quarter was highlighted by:

  • Exit from the TARP Program with the repurchase of all outstanding preferred stock, without issuing additional stock or debt
  • Significant improvement in profitability as asset quality continues to improve
  • Nonperforming assets declined 35 percent from a year ago and 66 percent since peak in early 2010
  • Level of loans in the 30- to 89-days delinquent category remains at virtually zero
  • Net increase in total loans
  • Net interest margin remains strong
  • Regulatory capital ratios remain significantly above minimum requirements for "well-capitalized" institutions

"The second quarter marked a number of significant accomplishments that has Mercantile poised to take advantage of lending and market opportunities," said Michael Price, Chairman and CEO of Mercantile Bank Corporation. "Our improving levels of profitability and the strength of our balance sheet enabled us to complete the repurchase of the preferred stock outstanding under TARP. For the first time in the Company's history, we had a net recovery of loan losses and recorded a negative provision for loan losses, reflecting an especially dynamic quarter pertaining to asset quality improvement. Our performance in the second quarter highlights the strength of our community banking model and the value we bring to the communities we serve."

Operating Results

Total revenue, which consists of net interest income and noninterest income, was $13.5 million during the 2012 second quarter, down $1.4 million or about 9 percent from the $14.9 million generated during the second quarter of 2011, primarily reflecting a reduction in earning assets. Net interest income was $11.5 million, down $1.7 million or 12.5 percent from the $13.2 million earned in the prior-year second quarter. The decrease in net interest income resulted from a 13.0 percent decline in average earning assets as part of management's strategic initiative to reduce commercial real estate exposure and shift certain loans out of the loan portfolio. The net interest margin during the second quarter of 2012 was 3.63 percent, slightly higher than the level during the second quarter of 2011 and remaining well above the historical average level.

Noninterest income for the 2012 second quarter was $2.0 million, up $0.2 million or 13.9 percent from the comparable 2011 period. The increase in noninterest income primarily resulted from increased residential mortgage banking fee income and an increase in rental income on foreclosed properties.

Mercantile had a negative $3.0 million provision for loan losses during the second quarter of 2012 compared to a provision expense of $1.7 million for the year-ago quarter. The negative provision expense is the result of several factors, including: a net recovery of prior-period loan charge-offs of $1.7 million, certain specific reserve allocations that were fully eliminated or significantly reduced due to successful collection efforts, a low level of loan-rating downgrades, and a significant number of loan-rating upgrades.

Noninterest expense for the 2012 second quarter was $10.6 million, up $0.2 million from the same period in 2011. Salaries and benefits totaled $4.9 million, up $0.5 million from the prior-year quarter, primarily reflecting the expense associated with certain employee benefit programs that had been suspended or lowered in prior years. 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 $2.1 million during the 2012 second quarter, up $0.1 million from the year-ago quarter. Federal Deposit Insurance Corporation insurance premiums were $0.3 million in the second quarter of 2012, down $0.4 million from the 2011 second quarter, primarily resulting from a decreased assessment rate that reflects the Company's improved financial condition and operating performance.

"Once again, we saw the benefit of our disciplined approach to managing our loan portfolio with a focus on appropriate underwriting and administration," added Price. "This effort has had a substantial positive impact on our operating performance and the strength of our financial condition, and has enabled us to repurchase all of our outstanding preferred stock without issuing additional stock or debt."

Balance Sheet

Over the past several years, Mercantile has focused on reducing its exposure to loans secured by commercial real estate. While efforts to reduce certain segments of the commercial real estate portfolio continue, total loans increased $9.3 million during the second quarter of 2012 as improved economic conditions and continued relationship building efforts have led to increased lending opportunities. As of June 30, 2012, total assets were $1.39 billion, down $48.0 million or 3.3 percent from December 31, 2011; total loans decreased $11.4 million, or 1.1 percent, to $1.06 billion over the same period. Compared to June 30, 2011, total assets declined $153 million, or 9.9 percent, and total loans declined $62.0 million, or 5.5 percent.

Real estate loans comprise a majority of Mercantile's loan portfolio. At June 30, 2012, real estate loans, excluding residential mortgage loans representing permanent financing of owner-occupied dwellings and home equity lines of credit, were $706 million or approximately 67 percent of total loans, representing a decline of $65.9 million, or 8.5 percent, from $772 million, or 68.8 percent of total loans, at June 30, 2011.

Non-owner-occupied commercial real estate ("CRE") loans totaled $351 million as of June 30, 2012 (33.1 percent of total loans), a decline of $78.9 million over the past 12 months. Owner-occupied CRE loans were $282 million at the end of the second quarter of 2012, an increase of $16.7 million from a year ago. Vacant land, land development and construction ("C&D") loans, including both residential and commercial projects, totaled $73.9 million at June 30, 2012, down $3.6 million from a year ago. The commercial and industrial ("C&I") segment of the loan portfolio was $277 million at June 30, 2012, an increase of $10.9 million since year-end 2011 and an increase of $15.3 million over the past 12 months. The average balance of commercial lines of credit has remained relatively stable since early 2011 after declining for several years.

LOANS SECURED BY REAL ESTATE

($000s)

6/30/12

3/31/12

12/31/11

9/30/11

6/30/11

Residential-Related:

Vacant Land

$

12,246

$

12,837

$

13,124

$

13,264

$

13,484

Land Development

15,256

16,173

17,007

17,441

18,134

Construction

4,055

4,318

4,923

4,647

4,706

31,557

33,328

35,054

35,352

36,324

Comm'l Non-Owner Occupied:

Vacant Land

8,827

9,255

10,555

11,082

12,639

Land Development

14,355

14,418

14,486

14,541

16,348

Construction

15,424

16,936

13,615

11,061

10,709

Commercial Buildings

350,762

357,128

376,805

397,279

429,708

389,368

397,737

415,461

433,963

469,404

Comm'l Owner Occupied:

Construction

3,751

6,198

4,213

2,986

1,517

Commercial Buildings

281,519

273,376

268,479

269,776

264,848

285,270

279,574

272,692

272,762

266,365

Total

$

706,195

$

710,639

$

723,207

$

742,077

$

772,093

Note --- Excludes residential mortgage loans representing permanent financing of owner-occupied dwellings and home

equity lines of credit.

Since December 2008, Mercantile has been focused on improving liquidity by reducing wholesale funding and growing local deposits, especially interest-bearing checking and money market deposit accounts. As of June 30, 2012, total deposits were $1.11 billion, a decline of $494 million since year-end 2008. By comparison, local deposits increased $327 million to $797 million since year-end 2008, representing 72.1 percent of total deposits compared to 29.4 percent at December 31, 2008. Approximately 77 percent, or $252 million, of local deposit growth since year-end 2008 occurred in the interest-bearing checking and money market deposit account categories, while DDA checking accounted for $53.8 million, or about 17 percent of total growth. Growth in local deposits was driven primarily by the introduction of innovative new products, various deposit-gathering initiatives, enhanced advertising and branding campaigns, and transfers from maturing time deposit accounts.

Wholesale funds were $343 million, or 28.8 percent of total funds, as of June 30, 2012, 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 $180 million, or 34.3 percent. The $1.07 billion decline in wholesale funding since the end of 2008 reflects both the shift toward local deposits, as well as a $796 million decline in total loans. This strategy has allowed Mercantile to reduce brokered deposits and Federal Home Loan Bank advances as they matured since year-end 2008.

Short-term investments, consisting of federal funds sold and interest-bearing bank deposits, averaged $71.4 million during the second quarter of 2012. In addition to its short-term investments, at the end of the second quarter of 2012, Mercantile had approximately $140 million of borrowing capacity through various established lines of credit to meet potential funding needs, as well as $33.2 million of U.S. Government securities available to sell.

Asset Quality

Nonperforming assets ("NPAs") at June 30, 2012 were $40.1 million, or 2.9 percent of total assets, compared to $60.4 million as of December 31, 2011, and $61.9 million as of June 30, 2011 (4.2 percent and 4.0 percent of total assets, respectively). This represents a decline of $20.3 million or 33.6 percent from the end of 2011, and a decline of $21.8 million or 35.3 percent from the year-ago quarter-end.

Robert B. Kaminski, Jr., Mercantile's Executive Vice President and Chief Operating Officer, noted: "We made outstanding progress in improving our asset quality during the second quarter, as evidenced by the decrease in nonperforming assets. The ratio of nonperforming assets to total assets decreased to less than 3 percent compared with levels greater than 4 percent at the end of 2011, driven by loan upgrades and declines in nonperforming loans. As we build on the improvement in asset quality, we expect to continue leveraging the key strategic benefits of being a community bank. Even though business owners have been cautious in expanding, as we highlight the value of our strategic relationship approach and close proximity to their businesses, we expect to capture additional market share as growth opportunities arise."

Nonperforming loans ("NPLs") totaled $28.5 million as of June 30, 2012, down $10.1 million and $14.9 million, respectively, from the linked quarter-end and the year-ago quarter-end, while foreclosed real estate and repossessed assets declined $2.0 million and $6.9 million, respectively, from the linked and year-ago quarter-ends. CRE loans represented 62.5 percent of NPLs, or $17.8 million at June 30, 2012. Investor-owned nonperforming CRE loans accounted for $13.2 million of total CRE nonperforming loans (3.8 percent of $351 million investor-owned CRE loans), while owner-occupied CRE nonperforming loans accounted for $4.6 million (1.6 percent of $282 million owner-occupied CRE loans).

Nonperforming C&D loans were $3.4 million as of June 30, 2012, a decrease of $0.1 million since the year-ago quarter-end. Nonperforming C&I loans were $1.8 million as of June 30, 2012, a decline of $2.0 million since June 30, 2011. Owner-occupied and rental residential NPLs were $5.5 million as of June 30, 2012, down $3.1 million since the year-ago quarter-end.

NONPERFORMING ASSETS

($000s)

6/30/12

3/31/12

12/31/11

9/30/11

6/30/11

Residential Real Estate:

Land Development

$

3,946

$

3,762

$

5,479

$

8,139

$

8,531

Construction

965

1,242

1,397

1,418

2,089

Owner Occupied / Rental

5,982

6,437

7,138

7,737

8,996

10,893

11,441

14,014

17,294

19,616

Commercial Real Estate:

Land Development

1,174

1,531

2,111

1,885

2,223

Construction

0

403

409

0

0

Owner Occupied

6,850

7,687

10,642

11,287

10,749

Non-Owner Occupied

19,386

28,954

30,106

22,435

25,526

27,410

38,575

43,268

35,607

38,498

Non-Real Estate:

Commercial Assets

1,765

2,144

3,060

3,897

3,777

Consumer Assets

1

14

14

29

4

1,766

2,158

3,074

3,926

3,781

Total

$

40,069

$

52,174

$

60,356

$

56,827

$

61,895

During the second quarter of 2012, Mercantile added $3.3 million of NPAs to its problem asset portfolio and successfully disposed of $13.0 million through a combination of asset sales and principal pay-downs. Loan charge-offs were $1.3 million and foreclosed asset valuation write-downs were $1.1 million. In total, NPAs decreased by a net $12.1 million during the second quarter of 2012.

Improvement in asset quality is also apparent on a full-year basis. During the 12-month period ended June 30, 2012, Mercantile added $26.9 million of problem assets to its NPA portfolio, successfully disposed of $41.4 million, and charged off or wrote down an additional $7.3 million. In total, NPAs declined by a net $21.8 million since June 30, 2011.

NONPERFORMING ASSETS RECONCILIATION

($000s)

2Q 2012

1Q 2012

4Q 2011

3Q 2011

2Q 2011

Beginning balance

$

52,174

$

60,356

$

56,827

$

61,895

$

76,089

Additions

3,306

9,651

10,188

3,740

6,478

Returns to performing

status

0

(737)

0

0

0

Principal payments

(11,357)

(5,533)

(2,115)

(5,058)

(12,067)

Sale proceeds

(1,586)

(9,282)

(3,038)

(2,670)

(2,547)

Loan charge-offs

(1,337)

(1,691)

(890)

(476)

(5,393)

Valuation write-downs

(1,131)

(590)

(616)

(604)

(665)

Total

$

40,069

$

52,174

$

60,356

$

56,827

$

61,895

Net loan recoveries were $1.7 million during the second quarter of 2012, or an annualized negative 0.7 percent of average loans, compared with net loan charge-offs of $5.6 million (2.1 percent annualized) and $5.1 million (1.7 percent annualized) for the linked and prior-year quarters, respectively.

NET LOAN CHARGE-OFFS (RECOVERIES)

($000s)

2Q 2012

1Q 2012

4Q 2011

3Q 2011

2Q 2011

Residential Real Estate:

Land Development

$

(110)

$

38

$

15

$

135

$

2,496

Construction

10

0

(90)

(11)

(9)

Owner Occupied / Rental

50

237

1,176

(187)

1,819

(50)

275

1,101

(63)

4,306

Commercial Real Estate:

Land Development

(7)

103

(75)

47

(62)

Construction

0

0

0

0

0

Owner Occupied

(164)

793

68

(18)

755

Non-Owner Occupied

(1,525)

4,341

4,060

639

445

(1,696)

5,237

4,053

668

1,138

Non-Real Estate:

Commercial Assets

(14)

81

(435)

(162)

(336)

Consumer Assets

14

(4)

0

26

(9)

0

77

(435)

(136)

(345)

Total

$

(1,746)

$

5,589

$

4,719

$

469

$

5,099

Capital Position

Shareholders' equity totaled $150 million as of June 30, 2012, a decrease of $15.3 million from December 31, 2011. During the second quarter of 2012, Mercantile repurchased the entire $21.0 million of preferred stock that was sold to the U.S. Department of the Treasury on May 15, 2009. To fund the repurchase, the Bank paid a cash dividend to the Company in approximately the same amount. The Bank remains "well-capitalized" with a total risk-based capital ratio of 14.6 percent as of June 30, 2012, compared to 15.5 percent at December 31, 2011. At June 30, 2012, the Bank had approximately $54.4 million in excess of the 10.0 percent minimum regulatory threshold required to be considered a "well-capitalized" institution. Mercantile reported 8,610,850 total shares outstanding at June 30, 2012.

On July 3, 2012 Mercantile repurchased, for $7.5 million, the warrant it sold to the U.S. Department of the Treasury on May 15, 2009. The warrant provided for the purchase of 616,438 shares of Mercantile common stock at a price of $5.11 per share. To fund the repurchase, the Bank paid a cash dividend to the Company in approximately the same amount. On a pro-forma basis, assuming the warrant repurchase and the payment of the cash dividend had been consummated on June 30, 2012, Mercantile's and the Bank's capital ratios would decline by about 55 to 65 basis points.

Mr. Price concluded: "We are very pleased with the strong performance we've posted so far in 2012. Our earnings performance and financial condition continued to improve, which combined with achieving additional important milestones provides us greater flexibility to take advantage of lending and market opportunities as they arise. We were able to fully repurchase the preferred stock and the warrant from the Treasury over the past several months without having to access the capital markets or issue debt, and still maintain a strong regulatory capital position. We remain dedicated to the key strategies that have enabled us to resume the path of disciplined growth for long-term performance."

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.

Mercantile Bank Corporation

Second Quarter 2012 Results

MERCANTILE BANK CORPORATION

CONSOLIDATED BALANCE SHEETS

JUNE 30,

DECEMBER 31,

JUNE 30,

2012

2011

2011

(Unaudited)

(Audited)

(Unaudited)

ASSETS

Cash and due from banks

$

18,405,000

$

12,402,000

$

13,988,000

Interest-bearing deposit balances

10,585,000

9,641,000

9,501,000

Federal funds sold

53,476,000

54,329,000

103,510,000

Total cash and cash equivalents

82,466,000

76,372,000

126,999,000

Securities available for sale

127,591,000

172,992,000

199,785,000

Federal Home Loan Bank stock

11,961,000

11,961,000

11,961,000

Loans

1,060,996,000

1,072,422,000

1,122,999,000

Allowance for loan losses

(29,689,000)

(36,532,000)

(38,720,000)

Loans, net

1,031,307,000

1,035,890,000

1,084,279,000

Premises and equipment, net

26,164,000

26,802,000

27,144,000

Bank owned life insurance

49,312,000

48,520,000

47,631,000

Accrued interest receivable

3,895,000

4,403,000

5,010,000

Other real estate owned and repossessed assets

11,545,000

15,282,000

18,473,000

Net deferred tax asset

25,285,000

26,013,000

0

Other assets

15,719,000

14,994,000

16,592,000

Total assets

$

1,385,245,000

$

1,433,229,000

$

1,537,874,000

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits:

Noninterest-bearing

$

164,532,000

$

147,031,000

$

144,761,000

Interest-bearing

941,098,000

965,044,000

1,103,171,000

Total deposits

1,105,630,000

1,112,075,000

1,247,932,000

Securities sold under agreements to repurchase

52,831,000

72,569,000

71,207,000

Federal Home Loan Bank advances

35,000,000

45,000,000

45,000,000

Subordinated debentures

32,990,000

32,990,000

32,990,000

Other borrowed money

1,423,000

1,434,000

1,721,000

Accrued interest and other liabilities

7,709,000

4,162,000

8,107,000

Total liabilities

1,235,583,000

1,268,230,000

1,406,957,000

SHAREHOLDERS' EQUITY

Preferred stock, net of discount

0

20,331,000

20,202,000

Common stock

174,026,000

173,979,000

173,939,000

Retained earnings (deficit)

(26,799,000)

(32,639,000)

(65,312,000)

Accumulated other comprehensive income

2,435,000

3,328,000

2,088,000

Total shareholders' equity

149,662,000

164,999,000

130,917,000

Total liabilities and shareholders' equity

$

1,385,245,000

$

1,433,229,000

$

1,537,874,000

Mercantile Bank Corporation

Second Quarter 2012 Results

MERCANTILE BANK CORPORATION

CONSOLIDATED REPORTS OF OPERATIONS

THREE MONTHS ENDED

THREE MONTHS ENDED

SIX MONTHS ENDED

SIX MONTHS ENDED

June 30, 2012

June 30, 2011

June 30, 2012

June 30, 2011

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

INTEREST INCOME

Loans, including fees

$

13,454,000

$

16,171,000

$

27,268,000

$

32,903,000

Investment securities

1,430,000

2,235,000

3,131,000

4,626,000

Federal funds sold

38,000

48,000

70,000

78,000

Interest-bearing deposit balances

8,000

6,000

14,000

12,000

Total interest income

14,930,000

18,460,000

30,483,000

37,619,000

INTEREST EXPENSE

Deposits

2,844,000

4,333,000

5,853,000

8,967,000

Short-term borrowings

42,000

116,000

91,000

277,000

Federal Home Loan Bank advances

300,000

606,000

688,000

1,212,000

Other borrowed money

233,000

247,000

471,000

556,000

Total interest expense

3,419,000

5,302,000

7,103,000

11,012,000

Net interest income

11,511,000

13,158,000

23,380,000

26,607,000

Provision for loan losses

(3,000,000)

1,700,000

(3,000,000)

3,900,000

Net interest income after

provision for loan losses

14,511,000

11,458,000

26,380,000

22,707,000

NONINTEREST INCOME

Service charges on accounts

379,000

401,000

764,000

823,000

Other income

1,561,000

1,302,000

3,110,000

2,632,000

Total noninterest income

1,940,000

1,703,000

3,874,000

3,455,000

NONINTEREST EXPENSE

Salaries and benefits

4,855,000

4,364,000

9,545,000

8,735,000

Occupancy

671,000

708,000

1,349,000

1,409,000

Furniture and equipment

299,000

304,000

606,000

607,000

Nonperforming asset costs

2,080,000

1,950,000

3,355,000

5,048,000

FDIC insurance costs

296,000

719,000

600,000

1,635,000

Other expense

2,403,000

2,398,000

4,803,000

4,590,000

Total noninterest expense

10,604,000

10,443,000

20,258,000

22,024,000

Income before federal income

tax expense

5,847,000

2,718,000

9,996,000

4,138,000

Federal income tax expense

1,856,000

0

3,125,000

0

Net income

3,991,000

2,718,000

6,871,000

4,138,000

Preferred stock dividends and accretion

703,000

337,000

1,031,000

669,000

Net income attributable to

common shares

$

3,288,000

$

2,381,000

$

5,840,000

$

3,469,000

Basic earnings per share

$0.38

$0.28

$0.68

$0.40

Diluted earnings per share

$0.36

$0.27

$0.65

$0.39

Average basic shares outstanding

8,610,181

8,604,476

8,607,832

8,601,835

Average diluted shares outstanding

9,043,791

8,872,692

9,023,744

8,878,595

Mercantile Bank Corporation

Second Quarter 2012 Results

MERCANTILE BANK CORPORATION

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

Quarterly

Year-To-Date

2012

2012

2011

2011

2011

(dollars in thousands except per share data)

2nd Qtr

1st Qtr

4th Qtr

3rd Qtr

2nd Qtr

2012

2011

EARNINGS

Net interest income

$

11,511

11,869

12,335

12,295

13,158

23,380

26,607

Provision for loan losses

$

(3,000)

0

1,900

1,100

1,700

(3,000)

3,900

Noninterest income

$

1,940

1,934

2,023

1,804

1,703

3,874

3,455

Noninterest expense

$

10,604

9,654

9,497

9,975

10,443

20,258

22,024

Net income before federal income

tax expense

$

5,847

4,149

2,961

3,024

2,718

9,996

4,138

Net income

$

3,991

2,880

30,322

3,024

2,718

6,871

4,138

Net income common shares

$

3,288

2,552

29,991

2,682

2,381

5,840

3,469

Basic earnings per share

$

0.38

0.30

3.49

0.31

0.28

0.68

0.40

Diluted earnings per share

$

0.36

0.28

3.37

0.30

0.27

0.65

0.39

Average basic shares outstanding

8,610,181

8,605,484

8,604,240

8,604,263

8,604,476

8,607,832

8,601,835

Average diluted shares outstanding

9,043,791

8,991,422

8,888,900

8,868,122

8,872,692

9,023,744

8,878,595

PERFORMANCE RATIOS

Return on average assets

0.94%

0.73%

8.22%

0.71%

0.61%

0.83%

0.44%

Return on average equity

8.46%

6.14%

85.19%

7.89%

7.39%

7.26%

5.47%

Net interest margin (fully tax-equivalent)

3.63%

3.73%

3.65%

3.50%

3.61%

3.68%

3.62%

Efficiency ratio

78.83%

69.94%

66.14%

70.75%

70.27%

74.33%

73.26%

Full-time equivalent employees

231

225

232

237

235

231

235

CAPITAL

Period-ending equity to assets

10.80%

11.92%

11.51%

9.25%

8.51%

10.80%

8.51%

Tier 1 leverage capital ratio

11.42%

12.66%

12.09%

10.87%

10.27%

11.42%

10.27%

Tier 1 risk-based capital ratio

13.33%

14.87%

14.19%

13.24%

12.58%

13.33%

12.58%

Total risk-based capital ratio

14.59%

16.14%

15.46%

14.51%

13.85%

14.59%

13.85%

Book value per common share

$

17.38

16.97

16.73

13.45

12.77

17.38

12.77

Cash dividend per common share

$

0.00

0.00

0.00

0.00

0.00

0.00

0.00

ASSET QUALITY

Gross loan charge-offs

$

1,708

7,576

5,791

1,342

6,733

9,284

12,764

Net loan charge-offs

$

(1,746)

5,589

4,719

469

5,099

3,843

10,548

Net loan charge-offs to average loans

(0.66%)

2.10%

1.75%

0.17%

1.73%

0.72%

1.76%

Allowance for loan losses

$

29,689

30,943

36,532

39,351

38,720

29,689

38,720

Allowance for loan losses to total loans

2.80%

2.94%

3.41%

3.60%

3.45%

2.80%

3.45%

Nonperforming loans

$

28,524

38,668

45,074

39,540

43,422

28,524

43,422

Other real estate and repossessed assets

$

11,545

13,506

15,282

17,287

18,473

11,545

18,473

Nonperforming assets to total assets

2.89%

3.72%

4.21%

3.84%

4.02%

2.89%

4.02%

END OF PERIOD BALANCES

Loans

$

1,060,996

1,051,674

1,072,422

1,094,037

1,122,999

1,060,996

1,122,999

Total earning assets (before allowance)

$

1,264,609

1,284,982

1,321,345

1,385,945

1,447,756

1,264,609

1,447,756

Total assets

$

1,385,245

1,401,596

1,433,229

1,477,985

1,537,874

1,385,245

1,537,874

Deposits

$

1,105,630

1,093,434

1,112,075

1,185,333

1,247,932

1,105,630

1,247,932

Shareholders' equity

$

149,662

167,084

164,999

136,733

130,917

149,662

130,917

AVERAGE BALANCES

Loans

$

1,067,933

1,065,285

1,072,851

1,111,184

1,179,786

1,066,609

1,206,264

Total earning assets (before allowance)

$

1,290,066

1,294,380

1,358,585

1,414,722

1,483,409

1,292,223

1,501,258

Total assets

$

1,407,400

1,409,953

1,448,000

1,504,640

1,566,708

1,408,676

1,584,695

Deposits

$

1,109,160

1,095,147

1,152,001

1,211,863

1,251,818

1,102,155

1,256,677

Shareholders' equity

$

155,931

166,846

139,676

134,862

129,242

161,388

127,835

 

SOURCE Mercantile Bank Corporation



RELATED LINKS

https://www.mercbank.com