Mercantile Bank Corporation Reports Strong Second Quarter 2015 Results

Sustained strength in core profitability and loan originations support 2015 outlook

Jul 21, 2015, 06:00 ET from Mercantile Bank Corporation

GRAND RAPIDS, Mich., July 21, 2015 /PRNewswire/ -- Mercantile Bank Corporation (NASDAQ: MBWM) ("Mercantile") reported net income of $6.6 million, or $0.39 per diluted share, for the second quarter of 2015, compared with net income of $1.5 million, or $0.13 per diluted share, for the prior-year period.  The second quarter of 2014 results included $3.5 million in pre-tax merger-related costs, which amounted to $2.4 million after tax, or $0.21 per share.  Excluding these costs, adjusted net income in the year-ago quarter was $3.9 million and adjusted earnings per diluted share was $0.34.  The year-ago second quarter included the consolidated results of Firstbank Corporation ("Firstbank") for June only.

Second quarter 2015 highlights:

  • Core profitability remains strong
  • Net interest margin remains stable and robust
  • Significant increase in mortgage banking income
  • New commercial term loan originations of approximately $120 million
  • Commercial loan pipeline remains strong
  • Significant reduction in nonperforming assets
  • Volume of loans past due 30- to 89-days remains low
  • Approximately 463,000 shares repurchased during the first six months of 2015
  • Capital ratios remain strong

"Mercantile continued its strong 2015 performance with a healthy quarter that reflects sustained strength in core profitability and our position as a leader in our markets," said Michael Price, Chairman and Chief Executive Officer of Mercantile.  "Our sound balance sheet and earnings performance, along with our success in fostering new customer relationships, gives us confidence that the strong performance in the first half of 2015 will extend into the remainder of the year."

Operating Results

Total revenue, which consists of net interest income and noninterest income, was $29.1 million during the second quarter of 2015, up $11.2 million or 62.9 percent from the prior-year second quarter.  Net interest income during the second quarter of 2015 was $25.0 million, up $9.5 million or 61.0 percent from the second quarter of 2014, reflecting an increase in average earning assets of 52.2 percent and an increased net interest margin.

The net interest margin was 3.83 percent in the second quarter of 2015, up from 3.62 percent in the second quarter of 2014.  The increase in the net interest margin was due to a decline in the cost of funds, in large part reflecting Firstbank's lower-cost deposit base.  Compared to the first quarter of 2015, the yield on total earning assets remained virtually unchanged despite the continuing low interest rate environment and competitive pressure on loan yields.  The yield on total earning assets remained relatively stable as earning assets were shifted out of low-yielding securities and overnight funds into the higher-yielding loan portfolio, capitalizing on an opportunity presented by the merger with Firstbank.  Average loans represented about 81 percent of average earning assets during the second quarter of 2015, up from approximately 80 percent during the first quarter of 2015, and management believes that Mercantile has further opportunity to improve the earning asset mix.

As expected, net interest income and the net interest margin were affected during the second quarter of 2015 by purchase accounting accretion and amortization entries associated with the fair value measurements recorded effective June 1, 2014.  An increase of $1.5 million in interest income on loans and a decrease of $0.6 million in interest expense on deposits and FHLB advances were recorded during the second quarter of 2015.  In addition, an increase in interest expense on subordinated debentures totaling $0.2 million was recorded.  Mercantile expects to continue to record adjustments in interest income on loans and interest expense on subordinated debentures in future periods; however, the adjustments to interest expense on deposits and FHLB advances will no longer occur after July of 2015 in accordance with our fair value measurements at the time of the merger.  It is anticipated that the resulting increase in interest expense will negatively affect the net interest margin by approximately eight to ten basis points after July 31, 2015.  Mercantile expects to partially mitigate this negative impact by continuing to reallocate the earning asset mix by investing excess lower-yielding overnight funds and cash flows from lower-yielding investments into higher-yielding loans.

Noninterest income during the second quarter of 2015 was $4.0 million, up $1.7 million or 75.7 percent from the prior-year second quarter.  Substantially all categories of fee income were higher in the current-year second quarter compared to the respective 2014 period as a result of the merger, most notably mortgage banking income, credit and debit card income and service charges on accounts.  Compared to the first quarter of 2015, mortgage banking income increased approximately 45 percent, primarily reflecting a seasonal increase in purchase activity.

Mercantile recorded a negative $0.6 million provision for loan losses during the second quarter of 2015 compared to a negative $0.7 million provision during the respective 2014 period.  The negative provisions are the result of several factors, including recoveries of previously charged-off loans, reversals of specific reserves and ongoing loan-rating upgrades as the quality of the loan portfolio continues to improve.

Noninterest expense totaled $20.4 million during the second quarter of 2015, up $4.3 million or 26.7 percent from the prior-year second quarter.  The increase in noninterest expense was mainly attributable to higher costs necessary to operate the combined company, as second quarter 2014 results included only one month of costs operating as a combined company, but also included merger-related costs of $3.5 million.

Mr. Price continued: "We are very pleased with our ability to maintain the stability of our net interest margin in light of industry-wide margin compression.  Our ongoing strategic initiative to fund loan growth through reductions in lower-yielding securities and overnight investments should continue to help mitigate the negative impact of competitive loan pricing pressures on our earning asset yield during the remainder of 2015.  We have also implemented certain fee enhancement and cost reduction initiatives that should have a positive impact on profitability during future periods."

Balance Sheet

Total loans increased $82.6 million, or 4.0 percent, to $2.17 billion in the first half of 2015.  Loan growth in the six-month period was at an approximately 8 percent annualized rate.  As of June 30, 2015, total assets were $2.88 billion, down $17.4 million or 0.6 percent from December 31, 2014.  Compared to June 30, 2014, total assets decreased $3.3 million, or 0.1 percent, and total loans increased $98.4 million, or 4.7 percent.

Approximately $120 million and $220 million in new commercial term loans to new and existing borrowers were originated during the second quarter and first six months of 2015, respectively, as ongoing sales and relationship building efforts have led to increased lending opportunities.  As of June 30, 2015, unfunded commitments on commercial construction and development loans totaled approximately $125 million; these commitments are expected to be largely funded over the next 12 to 18 months. 

Robert B. Kaminski, Jr., Mercantile's Executive Vice President and Chief Operating Officer, noted: "We are very pleased with the level of new loan originations during the second quarter of 2015, continuing the momentum generated during the past few years.  Our lending staff has taken advantage of the business opportunities afforded us in our expanded market area by developing new relationships and has continued to meet the credit needs of our existing customers, while maintaining a disciplined approach to loan quality and pricing.  Based on the strength of our existing loan pipeline and our continuing focus on building new relationships, we are confident that we will continue to grow the loan portfolio during upcoming periods."

Commercial-related real estate loans continue to comprise a majority of Mercantile's loan portfolio, representing 55 percent of total loans as of June 30, 2015.  Non-owner occupied commercial real estate ("CRE") loans and owner-occupied CRE loans equaled 28 percent and 19 percent of total loans, respectively, as of June 30, 2015.  Commercial and industrial loans represented 29 percent of total loans as of June 30, 2015. 

As of June 30, 2015, total deposits were $2.28 billion, up $1.9 million from December 31, 2014, and down $24.5 million from June 30, 2014; local deposits were up $41.6 million since year-end 2014 and $27.5 million since June 30, 2014.  The decline in total deposits from June 30, 2014, primarily reflects the strategy of reducing wholesale funding enabled by the strong core funding base provided by the merger with Firstbank.  Growth in local deposits was primarily driven by new commercial loan relationships.  Wholesale funds were $184 million, or approximately 7 percent of total funds, as of June 30, 2015.

Asset Quality

Nonperforming assets ("NPAs") at June 30, 2015 were $10.1 million, or 0.4 percent of total assets, compared to $27.9 million, or 1.0 percent of total assets, as of March 31, 2015, and $31.4 million, or 1.1 percent of total assets, as of December 31, 2014.  The substantial reduction in NPAs during the second quarter of 2015 was primarily due to the resolution of one commercial loan relationship, which accounted for approximately 76 percent of total NPAs at March 31, 2015.  Mercantile and the borrower worked cooperatively to achieve an orderly sale of the company, and while the sale did result in a significant charge-off, the charge-off was less than the amount that had been established as a specific reserve in prior quarters.

Net loan charge-offs were $3.9 million during the second quarter of 2015 compared with net loan recoveries of $1.4 million and $0.6 million during the linked quarter and prior-year second quarter, respectively.  Of the $4.4 million in gross loan charge-offs recorded during the second quarter of 2015, $4.2 million was related to the commercial loan relationship referenced above.

Capital Position

Shareholders' equity totaled $329 million as of June 30, 2015, an increase of $0.8 million from year-end 2014.  The Bank's capital position remains above "well-capitalized" with a total risk-based capital ratio of 13.8 percent as of June 30, 2015, compared to 14.4 percent at December 31, 2014.  At June 30, 2015, the Bank had approximately $94 million in excess of the 10.0 percent minimum regulatory threshold required to be considered a "well-capitalized" institution.  Mercantile reported 16,571,474 total shares outstanding at June 30, 2015.  As part of a $20 million common stock repurchase program announced in January of 2015, Mercantile repurchased approximately 463,000 shares at a weighted average all-in cost per share of $19.67 during the first six months of 2015, representing approximately 46 percent of the authorized program.

"It is fair to say that the Mercantile/Firstbank merger assimilation process is complete, and the staff is working together very well as one team focused on common forward-looking strategic goals," observed Samuel G. Stone, Executive Vice President of Mercantile.  "The most important priority right now, as identified in our strategic plan, is to grow revenues profitably from quality customers, leveraging the resources of the combined company.  With this in mind and the financial performance that is being achieved this year, I am pleased to look forward to beginning my retirement in January after participating in the strategic planning process this fall."

Mr. Price concluded: "We believe Mercantile is well-positioned to continue its success in future periods.  Our 2015 performance thus far is in line with our high expectations and has benefitted from the full realization of cost saves that were expected as a result of our merger with Firstbank.  Our margin reflects the realization of balance sheet opportunities brought about by the merger, and the potential for ongoing benefit remains.  We will continue to focus on being a premier community bank by developing strong customer relationships and delivering a wide-range of products and services.  Based on our strong balance sheet, the earnings momentum generated during the first half of the year, and our continuing efforts to identify new business opportunities, we are optimistic about our ability to further enhance shareholder value."

About Mercantile Bank Corporation

Based in Grand Rapids, Michigan, Mercantile Bank Corporation is the bank holding company for Mercantile Bank of Michigan.  Mercantile provides banking services to businesses, individuals and governmental units, and differentiates itself on the basis of service quality and the expertise of its banking staff. Mercantile has assets of approximately $2.9 billion and operates 53 banking offices serving communities in central and western 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; our ability to realize the anticipated benefits of our merger with Firstbank Corporation; our ability to compete in the highly competitive banking and financial services industry; 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 2015 Results

MERCANTILE BANK CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)

JUNE 30,

DECEMBER 31,

 JUNE 30,

2015

2014

2014

ASSETS

   Cash and due from banks

$

44,811,000

$

43,754,000

$

58,730,000

   Interest-bearing deposits

83,774,000

117,777,000

48,150,000

   Federal funds sold

9,846,000

11,207,000

11,973,000

      Total cash and cash equivalents

138,431,000

172,738,000

118,853,000

   Securities available for sale

373,446,000

432,912,000

475,275,000

   Federal Home Loan Bank stock

7,567,000

13,699,000

19,226,000

   Loans

2,171,832,000

2,089,277,000

2,073,482,000

   Allowance for loan losses

(16,561,000)

(20,041,000)

(20,856,000)

      Loans, net

2,155,271,000

2,069,236,000

2,052,626,000

   Premises and equipment, net

47,902,000

48,812,000

49,003,000

   Bank owned life insurance

58,409,000

57,861,000

55,693,000

   Goodwill

49,473,000

49,473,000

50,870,000

   Core deposit intangible

14,061,000

15,624,000

17,213,000

   Other assets

31,384,000

33,024,000

40,523,000

      Total assets

$

2,875,944,000

$

2,893,379,000

$

2,879,282,000

LIABILITIES AND SHAREHOLDERS' EQUITY

   Deposits:

      Noninterest-bearing

$

612,222,000

$

558,738,000

$

515,646,000

      Interest-bearing

1,666,572,000

1,718,177,000

1,787,615,000

         Total deposits

2,278,794,000

2,276,915,000

2,303,261,000

   Securities sold under agreements to repurchase

152,081,000

167,569,000

124,108,000

   Federal Home Loan Bank advances

48,000,000

54,022,000

57,044,000

   Subordinated debentures

54,813,000

54,472,000

54,131,000

   Accrued interest and other liabilities

13,285,000

12,263,000

24,600,000

         Total liabilities

2,546,973,000

2,565,241,000

2,563,144,000

SHAREHOLDERS' EQUITY

   Common stock

310,136,000

317,904,000

318,452,000

   Retained earnings

18,766,000

10,218,000

673,000

   Accumulated other comprehensive income (loss)

69,000

16,000

(2,987,000)

      Total shareholders' equity

328,971,000

328,138,000

316,138,000

      Total liabilities and shareholders' equity

$

2,875,944,000

$

2,893,379,000

$

2,879,282,000

 

Mercantile Bank Corporation

Second Quarter 2015 Results

MERCANTILE BANK CORPORATION

CONSOLIDATED REPORTS OF INCOME

(Unaudited)

THREE MONTHS ENDED

THREE MONTHS ENDED

SIX MONTHS ENDED

SIX MONTHS ENDED

June 30, 2015

June 30, 2014

June 30, 2015

June 30, 2014

INTEREST INCOME

   Loans, including fees

$

25,587,000

$

16,657,000

$

50,898,000

$

28,756,000

   Investment securities

2,012,000

1,767,000

4,234,000

3,184,000

   Other interest-earning assets

64,000

58,000

120,000

130,000

      Total interest income

27,663,000

18,482,000

55,252,000

32,070,000

INTEREST EXPENSE

   Deposits

1,775,000

2,272,000

3,675,000

4,307,000

   Short-term borrowings

39,000

27,000

76,000

49,000

   Federal Home Loan Bank advances

151,000

156,000

303,000

306,000

   Other borrowed money

657,000

474,000

1,308,000

791,000

      Total interest expense

2,622,000

2,929,000

5,362,000

5,453,000

      Net interest income

25,041,000

15,553,000

49,890,000

26,617,000

Provision for loan losses

(600,000)

(700,000)

(1,000,000)

(2,600,000)

      Net interest income after

         provision for loan losses

25,641,000

16,253,000

50,890,000

29,217,000

NONINTEREST INCOME

   Service charges on accounts

812,000

522,000

1,582,000

887,000

   Credit and debit card income

1,079,000

593,000

2,291,000

894,000

   Mortgage banking income

999,000

349,000

1,687,000

412,000

   Earnings on bank owned life insurance

262,000

282,000

548,000

581,000

   Other income

869,000

542,000

1,607,000

1,020,000

      Total noninterest income

4,021,000

2,288,000

7,715,000

3,794,000

NONINTEREST EXPENSE

   Salaries and benefits

11,074,000

7,037,000

21,158,000

12,267,000

   Occupancy

1,479,000

914,000

3,052,000

1,626,000

   Furniture and equipment

596,000

368,000

1,220,000

615,000

   Data processing costs

1,872,000

1,123,000

3,642,000

2,021,000

   FDIC insurance costs

483,000

224,000

960,000

401,000

   Merger-related costs

0

3,453,000

0

3,830,000

   Other expense

4,846,000

2,947,000

9,559,000

4,513,000

      Total noninterest expense

20,350,000

16,066,000

39,591,000

25,273,000

      Income before federal income

         tax expense

9,312,000

2,475,000

19,014,000

7,738,000

Federal income tax expense

2,754,000

966,000

5,810,000

2,649,000

      Net Income

$

6,558,000

$

1,509,000

$

13,204,000

$

5,089,000

   Basic earnings per share

$0.39

$0.13

$0.78

$0.50

   Diluted earnings per share

$0.39

$0.13

$0.78

$0.50

   Average basic shares outstanding

16,767,393

11,406,908

16,852,002

10,080,242

   Average diluted shares outstanding

16,803,846

11,427,353

16,887,702

10,091,515

 

Mercantile Bank Corporation

Second Quarter 2015 Results

MERCANTILE BANK CORPORATION

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

Quarterly

Year-To-Date

(dollars in thousands except per share data)

2015

2015

2014

2014

2014

2nd Qtr

1st Qtr

4th Qtr

3rd Qtr

2nd Qtr

2015

2014

EARNINGS

   Net interest income

$

25,041

24,849

25,173

25,989

15,553

49,890

26,617

   Provision for loan losses

$

(600)

(400)

0

(400)

(700)

(1,000)

(2,600)

   Noninterest income

$

4,021

3,694

3,333

2,899

2,288

7,715

3,794

   Noninterest expense

$

20,350

19,241

19,596

20,741

16,066

39,591

25,273

   Net income before federal income

      tax expense

$

9,312

9,702

8,910

8,547

2,475

19,014

7,738

   Net income

$

6,558

6,646

6,293

5,947

1,509

13,204

5,089

   Basic earnings per share

$

0.39

0.39

0.37

0.35

0.13

0.78

0.50

   Diluted earnings per share

$

0.39

0.39

0.37

0.35

0.13

0.78

0.50

   Average basic shares outstanding

16,767,393

16,937,630

16,919,559

16,852,050

11,406,908

16,852,002

10,080,242

   Average diluted shares outstanding

16,803,846

16,978,591

16,965,665

16,900,924

11,427,353

16,887,702

10,091,515

PERFORMANCE RATIOS

   Return on average assets

0.92%

0.94%

0.86%

0.82%

0.32%

0.93%

0.62%

   Return on average equity

7.97%

8.19%

7.70%

7.46%

2.94%

8.06%

5.68%

   Net interest margin (fully tax-equivalent)

3.83%

3.83%

3.79%

3.95%

3.62%

3.83%

3.53%

   Efficiency ratio

70.02%

67.41%

68.74%

71.80%

90.05%

68.73%

83.10%

   Full-time equivalent employees

656

642

653

640

645

656

645

YIELD ON ASSETS / COST OF FUNDS

   Yield on loans

4.78%

4.84%

4.90%

5.03%

4.85%

4.81%

4.70%

   Yield on securities

2.15%

2.17%

2.17%

2.24%

2.79%

2.16%

3.69%

   Yield on other interest-earning assets

0.25%

0.25%

0.25%

0.19%

0.24%

0.25%

0.25%

   Yield on total earning assets

4.23%

4.25%

4.23%

4.39%

4.30%

4.24%

4.25%

   Yield on total assets

3.89%

3.92%

3.89%

4.03%

3.96%

3.90%

3.93%

   Cost of deposits

0.31%

0.34%

0.36%

0.34%

0.61%

0.33%

0.85%

   Cost of borrowed funds

1.35%

1.36%

1.37%

1.52%

1.49%

1.35%

1.38%

   Cost of interest-bearing liabilities

0.54%

0.56%

0.59%

0.58%

0.87%

0.55%

0.93%

   Cost of funds (total earning assets)

0.40%

0.42%

0.44%

0.44%

0.68%

0.41%

0.72%

   Cost of funds (total assets)

0.37%

0.39%

0.41%

0.40%

0.62%

0.38%

0.67%

PURCHASE ACCOUNTING ADJUSTMENTS

   Loan portfolio - increase interest income

$

1,494

1,416

1,507

1,175

512

2,910

512

   Time deposits - reduce interest expense

$

587

588

588

588

196

1,175

196

   FHLB advances - reduce interest expense

$

11

11

11

11

4

22

4

   Trust preferred - increase interest expense

$

171

171

171

171

57

342

57

   Core deposit intangible - increase overhead

$

768

794

794

794

265

1,562

265

CAPITAL

   Tangible equity to tangible assets

9.44%

9.54%

9.30%

9.07%

8.82%

9.44%

8.82%

   Tier 1 leverage capital ratio

11.58%

11.61%

11.15%

11.01%

16.67%

11.58%

16.67%

   Common equity risk-based capital ratio

10.94%

11.17%

NA

NA

NA

10.94%

NA

   Tier 1 risk-based capital ratio

12.97%

13.22%

13.57%

13.17%

13.10%

12.97%

13.10%

   Total risk-based capital ratio

13.63%

14.07%

14.43%

14.04%

14.00%

13.63%

14.00%

   Tier 1 capital

$

325,304

326,947

314,752

307,562

302,365

325,304

302,365

   Tier 1 plus tier 2 capital

$

341,865

347,997

334,793

327,936

323,221

341,865

323,221

   Total risk-weighted assets

$

2,509,001

2,473,399

2,319,404

2,335,589

2,308,746

2,509,001

2,308,746

   Book value per common share

$

19.85

19.69

19.33

19.04

18.77

19.85

18.77

   Tangible book value per common share

$

16.02

15.89

15.49

15.05

14.73

16.02

14.73

   Cash dividend per common share

$

0.14

0.14

0.12

0.12

2.12

0.28

2.24

ASSET QUALITY

   Gross loan charge-offs

$

4,383

448

466

345

103

4,831

691

   Recoveries

$

494

1,858

132

263

705

2,352

1,326

   Net loan charge-offs (recoveries)

$

3,889

(1,410)

334

82

(602)

2,479

(635)

   Net loan charge-offs to average loans

0.73%

(0.27%)

0.06%

0.02%

(0.18%)

0.23%

(0.11%)

   Allowance for loan losses

$

16,561

21,050

20,041

20,374

20,856

16,561

20,856

   Allowance to originated loans

1.10%

1.58%

1.54%

1.72%

1.82%

1.10%

1.82%

   Nonperforming loans

$

8,103

26,267

29,434

6,071

5,741

8,103

5,741

   Other real estate/repossessed assets

$

2,033

1,664

1,995

2,659

2,878

2,033

2,878

   Nonperforming loans to total loans

0.37%

1.24%

1.41%

0.29%

0.28%

0.37%

0.28%

   Nonperforming assets to total assets

0.35%

0.97%

1.09%

0.30%

0.30%

0.35%

0.30%

 

Mercantile Bank Corporation

Second Quarter 2015 Results

MERCANTILE BANK CORPORATION

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

Quarterly

Year-To-Date

(dollars in thousands except per share data)

2015

2015

2014

2014

2014

2nd Qtr

1st Qtr

4th Qtr

3rd Qtr

2nd Qtr

2015

2014

NONPERFORMING ASSETS - COMPOSITION

   Residential real estate:

      Land development

$

380

383

413

436

463

380

463

      Construction

$

0

0

0

0

22

0

22

      Owner occupied / rental

$

3,316

3,224

4,951

5,252

4,867

3,316

4,867

   Commercial real estate:

      Land development

$

184

197

209

222

327

184

327

      Construction

$

0

0

0

0

0

0

0

      Owner occupied  

$

2,726

17,634

18,338

906

1,475

2,726

1,475

      Non-owner occupied

$

3,286

910

1,075

1,585

1,198

3,286

1,198

   Non-real estate:

      Commercial assets

$

212

5,565

6,401

296

267

212

267

      Consumer assets

$

32

18

42

33

0

32

0

   Total nonperforming assets

10,136

27,931

31,429

8,730

8,619

10,136

8,619

NONPERFORMING ASSETS - RECON

   Beginning balance

$

27,931

31,429

8,730

8,619

8,692

31,429

9,569

   Additions - originated loans

$

2,972

584

24,734

1,215

164

3,556

338

   Merger-related activity

$

166

105

160

830

1,187

271

1,187

   Return to performing status

$

0

(5)

(779)

0

0

(5)

0

   Principal payments

$

(16,414)

(3,203)

(227)

(864)

(523)

(19,617)

(972)

   Sale proceeds

$

(220)

(538)

(982)

(910)

(790)

(758)

(1,291)

   Loan charge-offs

$

(4,236)

(371)

(145)

0

(67)

(4,607)

(168)

   Valuation write-downs

$

(63)

(70)

(62)

(160)

(44)

(133)

(44)

   Ending balance

$

10,136

27,931

31,429

8,730

8,619

10,136

8,619

LOAN PORTFOLIO COMPOSITION

   Commercial:

      Commercial & industrial

$

622,073

587,675

550,629

541,805

538,791

622,073

538,791

      Land development & construction

$

47,622

56,050

51,977

52,218

55,948

47,622

55,948

      Owner occupied comm'l R/E

$

422,354

431,995

430,406

412,470

411,116

422,354

411,116

      Non-owner occupied comm'l R/E

$

603,724

566,152

559,594

584,422

588,752

603,724

588,752

      Multi-family & residential rental

$

124,658

117,477

122,772

95,649

93,939

124,658

93,939

         Total commercial

$

1,820,431

1,759,349

1,715,378

1,686,564

1,688,546

1,820,431

1,688,546

   Retail:

      1-4 family mortgages

$

201,907

208,425

214,696

217,751

215,908

201,907

215,908

      Home equity & other consumer

$

149,494

152,986

159,203

163,950

169,028

149,494

169,028

         Total retail

$

351,401

361,411

373,899

381,701

384,936

351,401

384,936

         Total loans

$

2,171,832

2,120,760

2,089,277

2,068,265

2,073,482

2,171,832

2,073,482

END OF PERIOD BALANCES

   Loans

$

2,171,832

2,120,760

2,089,277

2,068,265

2,073,482

2,171,832

2,073,482

   Securities

$

381,013

427,392

446,611

473,235

494,501

381,013

494,501

   Other interest-earning assets

$

93,620

106,146

128,984

82,545

60,123

93,620

60,123

   Total earning assets (before allowance)

$

2,646,465

2,654,298

2,664,872

2,624,045

2,628,106

2,646,465

2,628,106

   Total assets

$

2,875,944

2,877,184

2,893,379

2,863,104

2,879,282

2,875,944

2,879,282

   Noninterest-bearing deposits

$

612,222

568,843

558,738

535,101

515,646

612,222

515,646

   Interest-bearing deposits

$

1,666,572

1,710,681

1,718,177

1,736,607

1,787,615

1,666,572

1,787,615

   Total deposits

$

2,278,794

2,279,524

2,276,915

2,271,708

2,303,261

2,278,794

2,303,261

   Total borrowed funds

$

258,599

254,365

279,790

254,203

249,631

258,599

249,631

   Total interest-bearing liabilities

$

1,925,171

1,965,046

1,997,967

1,990,810

2,037,246

1,925,171

2,037,246

   Shareholders' equity

$

328,971

332,788

328,138

320,993

316,138

328,971

316,138

AVERAGE BALANCES

   Loans

$

2,147,040

2,119,464

2,085,844

2,075,087

1,377,986

2,133,329

1,219,670

   Securities

$

404,311

440,380

459,920

484,345

267,273

422,246

207,549

   Other interest-earning assets

$

89,357

87,620

109,128

66,207

89,741

88,493

93,209

   Total earning assets (before allowance)

$

2,640,708

2,647,464

2,654,892

2,625,639

1,735,000

2,644,068

1,520,428

   Total assets

$

2,865,427

2,873,032

2,889,475

2,862,349

1,882,618

2,869,863

1,653,632

   Noninterest-bearing deposits

$

591,500

557,603

561,031

532,997

318,632

574,645

266,621

   Interest-bearing deposits

$

1,681,437

1,723,684

1,736,242

1,757,162

1,169,863

1,702,444

1,031,052

   Total deposits

$

2,272,937

2,281,287

2,297,273

2,290,159

1,488,495

2,277,089

1,297,673

   Total borrowed funds

$

251,996

251,418

254,290

245,522

176,946

251,708

166,552

   Total interest-bearing liabilities

$

1,933,433

1,975,102

1,990,532

2,002,685

1,346,809

1,954,152

1,197,604

   Shareholders' equity

$

330,126

329,246

324,075

316,410

205,558

330,402

180,780

 

SOURCE Mercantile Bank Corporation



RELATED LINKS

https://www.mercbank.com