Mercantile Bank Corporation Announces Robust Second Quarter 2025 Results and Partnership with Eastern Michigan Financial Corporation
Rhea-AI Summary
Mercantile Bank Corporation (NASDAQ: MBWM) reported strong Q2 2025 results with net income of $22.6 million ($1.39 per diluted share), up from $18.8 million in Q2 2024. The bank demonstrated robust performance with net revenue of $60.9 million, a 7.4% increase year-over-year.
Key highlights include net interest income growth to $49.5 million, a stable net interest margin of 3.49%, and increased noninterest income of $11.5 million. The bank maintained strong asset quality with nonperforming assets at just 0.2% of total assets. Total assets reached $6.18 billion, with commercial loans growing at an annualized 6.2% during H1 2025.
Additionally, Mercantile announced a strategic partnership with Eastern Michigan Financial Corporation, positioning it as Michigan's largest locally founded and operated bank.
Positive
- Net income increased to $22.6 million, up 20.2% from Q2 2024
- Net revenue grew 7.4% year-over-year to $60.9 million
- Noninterest income rose 18.4% to $11.5 million
- Commercial loans grew at an annualized 6.2% in H1 2025
- Strong capital position with 13.9% total risk-based capital ratio
- Strategic partnership with Eastern Michigan Financial Corporation to expand footprint
- Reduced federal income tax expense through energy tax credits
Negative
- Net interest margin declined to 3.49% from 3.63% year-over-year
- Nonperforming assets increased to $9.7 million from $5.7 million at year-end 2024
- Loan-to-deposit ratio increased to 100% from 98% at year-end 2024
- Noninterest expense rose to $33.4 million from $29.7 million year-over-year
News Market Reaction
On the day this news was published, MBWM declined 1.83%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Net interest income expansion, substantial noninterest income growth, and ongoing strength in asset quality metrics and capital levels highlight the quarter
"We once again reported solid quarterly financial results despite uncertain macro-economic conditions throughout the second quarter of 2025," said Ray Reitsma, President and Chief Executive Officer of Mercantile. "Our strong operating performance reflected net interest income growth, a stabilizing and healthy net interest margin, noteworthy increases in core noninterest income revenue streams, a significant decline in federal income tax expense, robust commercial loan expansion, and sustained strength in asset quality metrics and capital levels. We remain steadfast in our efforts to lower our loan-to-deposit ratio through local deposit generation, including the expansion of existing deposit relationships and new client acquisition. Our partnership with Eastern Michigan Financial Corporation will enhance our Bank's position as the largest bank founded, headquartered, and operated in the
Second quarter highlights include:
- Net interest income growth
- Notable increases in mortgage banking, interest rate swap, treasury management, and payroll services income
- Reduction in federal income tax expense resulting from the acquisition of transferable energy tax credits
- Solid commercial loan portfolio expansion
- Strong commercial loan pipeline
- Sustained low levels of nonperforming assets, past due loans, and loan charge-offs
- Robust capital position
Operating Results
Net revenue, consisting of net interest income and noninterest income, was
The net interest margin was 3.49 percent in the second quarter of 2025, down from 3.63 percent in the prior-year second quarter. The yield on average earning assets was 5.77 percent during the current-year second quarter, a decrease from 6.07 percent during the respective 2024 period. The lower yield primarily resulted from a reduced yield on loans and a change in earning asset mix, which more than offset an improved yield on securities stemming from the reinvestment of relatively low-yielding bonds and portfolio expansion activities. The yield on loans was 6.32 percent during the second quarter of 2025, down from 6.64 percent during the second quarter of 2024 mainly due to lower interest rates on variable-rate commercial loans resulting from the Federal Open Market Committee ("FOMC") lowering the targeted federal funds rate. The FOMC decreased the targeted federal funds rate by 50 basis points in September of 2024 and 25 basis points in each of November and December of 2024, during which time average variable-rate commercial loans represented approximately 73 percent of average total commercial loans. Denoting the success of a strategic initiative to reduce the loan-to-deposit ratio and increase on-balance sheet liquidity, higher-yielding loans represented a decreased percentage of earning assets and lower-yielding securities accounted for an increased percentage of earning assets in the second quarter of 2025 compared to the second quarter of 2024.
During the second quarter of 2025, the cost of funds was 2.28 percent, down from 2.44 percent in the second quarter of 2024 mainly due to lower rates paid on money market accounts and time deposits, reflecting the decreased interest rate environment that began in September of 2024 in conjunction with the FOMC's lowering of the targeted federal funds rate. A change in funding mix, primarily consisting of declines in average noninterest-bearing checking accounts and lower-cost non-time deposits and increases in average higher-cost money market accounts and time deposits, negatively impacted the cost of funds during the second quarter of 2025. The increases in money market accounts and time deposits reflected a combination of new deposit relationships, growth in existing deposit relationships, and deposit migration.
Mercantile recorded provisions for credit losses of
Noninterest income totaled
Noninterest expense totaled
Federal income tax expense was
Mr. Reitsma commented, "Our net interest margin, although declining as expected in the second quarter of 2025 in comparison to the second quarter of 2024 as a result of a decreased yield on average earning assets, has remained relatively stable over the past four quarters. Growth in earning assets more than outweighed the impact of the lower net interest margin, providing for a higher level of net interest income. The substantial growth in mortgage banking income during the second quarter of 2025 mainly resulted from the continued success of our strategic plan to increase the percentage of loans originated with the intent to sell and sustain solid loan production, while the noteworthy increases in treasury management and payroll service fees primarily reflected clients' expanded use of products and services and successful marketing efforts. We are very pleased with the increase in interest rate swap income, reflecting a higher level of transaction volume, and significant reduction in federal tax expense, mainly reflecting the tax benefit received from the acquisition of transferable energy tax credits, during the current-year second quarter. Meeting balance sheet growth objectives in a cost-effective manner and continuing to provide our customers with exceptional service and industry-leading products and services to meet their needs remain top priorities."
Balance Sheet
As of June 30, 2025, total assets were
Residential mortgage loans declined
As of June 30, 2025, unfunded commitments on commercial construction and development loans, which are expected to be funded over the next 12 to 18 months, and residential construction loans, which are expected to be largely funded over the next 12 months, totaled
Commercial and industrial loans and owner-occupied commercial real estate loans combined represented approximately 55 percent of total commercial loans as of June 30, 2025, a level that has remained relatively consistent with prior periods and in line with our expectations.
Total deposits equaled
Mr. Reitsma noted, "Commercial loan growth accelerated during the second quarter of 2025 as commercial borrowers' tariff-induced concerns eased, resulting in the commencement of construction projects and business expansion activities that had been delayed during the first few months of the year as a result of heightened uncertainty surrounding economic and operating environments. We are pleased with the level of commercial loan expansion during the second quarter and first six months of 2025, especially when taking into consideration the ongoing economic uncertainty and significant level of partial paydowns and full payoffs during the periods, and we believe abundant opportunities to book commercial loans in future periods exist in light of our current pipeline and continuing discussions with current and prospective borrowers. Lowering our loan-to-deposit ratio through local deposit generation and limiting the use of wholesale funds to originate loans and purchase investments remains a key near-term goal."
Asset Quality
Nonperforming assets totaled
Mr. Reitsma remarked, "Our asset quality metrics remained strong during the second quarter of 2025, reflecting our unwavering commitment to underwrite loans in a cautious manner and in accordance with internal policy guidelines, along with our customers' proven abilities to operate effectively during periods of economic uncertainty. The levels of nonperforming assets, delinquent loans, and loan charge-offs remained low during the second quarter, and we will continue our efforts to identify any deteriorating commercial credit relationships and emerging systemic or sector-specific credit concerns as early as possible to limit the impact of such on our overall financial condition. As evidenced by ongoing low past due and charge-off levels, our residential mortgage loan and consumer loan portfolios continued to exhibit strong performance."
Capital Position
Shareholders' equity totaled
All of Mercantile Bank's investments are categorized as available-for-sale. As of June 30, 2025, the net unrealized loss on these investments totaled
Mercantile reported 16,248,694 total shares outstanding as of June 30, 2025.
Mr. Reitsma concluded, "Our sustained strong financial performance has allowed us to continue our regular quarterly cash dividend program, and as evidenced by our announcement of an increased third quarter cash dividend earlier this morning, we remain committed to providing shareholders with meaningful cash returns on their investments. We believe our solid operating results, asset quality metrics and capital levels, along with renewed strength in our commercial loan commitments and prospects, position us to effectively meet challenges resulting from unstable economic and operating conditions. Our community banking model and associated emphasis on developing mutually beneficial relationships with customers have been instrumental in preserving established relationships and fostering new relationships, and we believe continuing focus on each will provide us with ample opportunities to expand our local deposit base and reduce our loan-to-deposit ratio in future periods."
Partnership with Eastern Michigan Financial Corporation
Mercantile and Eastern Michigan Financial Corporation ("
For additional information on the announcement of the partnership, refer to the "Mercantile Bank Corporation and Eastern Michigan Financial Corporation Announce Definitive Merger Agreement" press release available in the Investor Relations section of Mercantile's website at www.mercbank.com.
Investor Presentation
Mercantile has prepared presentation materials that management intends to use during its previously announced second quarter 2025 conference call on Tuesday, July 22, 2025, at 10:00 a.m. Eastern Time, and from time to time thereafter in presentations about the company's operations and performance. These materials, which are available for viewing in the Investor Relations section of Mercantile's website at www.mercbank.com, have been furnished to the
About Mercantile Bank Corporation
Based in
Forward-Looking Statements
This news release contains statements or information that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will," and similar references to future periods. Any such statements 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; increasing rates of inflation and slower growth rates or recession; significant declines in the value of commercial real estate; market volatility; demand for products and services; climate impacts; labor markets; the degree of competition by traditional and nontraditional financial services companies; changes in banking regulation or actions by bank regulators; changes in tax laws and other laws and regulations applicable to us; changes in prices, levies, and assessments; the impact of technological advances; potential cyber-attacks, information security breaches and other criminal activities; litigation liabilities; governmental and regulatory policy changes; the outcomes of existing or future contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; damage to our reputation resulting from adverse publicity, regulatory actions, litigation, operational failures, and the failure to meet client expectations and other facts; changes in the national and local economies; unstable political and economic environments; disease outbreaks, such as the COVID-19 pandemic or similar public health threats, and measures implemented to combat them; and other factors, including those expressed as 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. Investors are cautioned not to place undue reliance on any forward-looking statements contained herein.
Mercantile Bank Corporation | ||||||
Second Quarter 2025 Results | ||||||
MERCANTILE BANK CORPORATION | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
JUNE 30, | DECEMBER 31, | JUNE 30, | ||||
2025 | 2024 | 2024 | ||||
(Unaudited) | (Audited) | (Unaudited) | ||||
ASSETS | ||||||
Cash and due from banks | $ | 98,900,000 | $ | 56,991,000 | $ | 61,863,000 |
Interest-earning assets | 197,172,000 | 336,019,000 | 135,766,000 | |||
Total cash and cash equivalents | 296,072,000 | 393,010,000 | 197,629,000 | |||
Securities available for sale | 826,415,000 | 730,352,000 | 647,907,000 | |||
Federal Home Loan Bank stock | 21,513,000 | 21,513,000 | 21,513,000 | |||
Mortgage loans held for sale | 27,569,000 | 15,824,000 | 22,126,000 | |||
Loans | 4,698,019,000 | 4,600,781,000 | 4,438,245,000 | |||
Allowance for credit losses | (58,375,000) | (54,454,000) | (55,408,000) | |||
Loans, net | 4,639,644,000 | 4,546,327,000 | 4,382,837,000 | |||
Premises and equipment, net | 54,792,000 | 53,427,000 | 50,158,000 | |||
Bank owned life insurance | 95,012,000 | 93,839,000 | 86,001,000 | |||
Goodwill | 49,473,000 | 49,473,000 | 49,473,000 | |||
Other assets | 170,498,000 | 148,396,000 | 144,744,000 | |||
Total assets | $ | 6,180,988,000 | $ | 6,052,161,000 | $ | 5,602,388,000 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Deposits: | ||||||
Noninterest-bearing | $ | 1,180,801,000 | $ | 1,264,523,000 | $ | 1,119,888,000 |
Interest-bearing | 3,529,671,000 | 3,433,843,000 | 3,026,686,000 | |||
Total deposits | 4,710,472,000 | 4,698,366,000 | 4,146,574,000 | |||
Securities sold under agreements to repurchase | 242,785,000 | 121,521,000 | 221,898,000 | |||
Federal Home Loan Bank advances | 356,221,000 | 387,083,000 | 427,083,000 | |||
Subordinated debentures | 50,672,000 | 50,330,000 | 49,987,000 | |||
Subordinated notes | 89,486,000 | 89,314,000 | 89,143,000 | |||
Accrued interest and other liabilities | 99,833,000 | 121,021,000 | 116,552,000 | |||
Total liabilities | 5,549,469,000 | 5,467,635,000 | 5,051,237,000 | |||
SHAREHOLDERS' EQUITY | ||||||
Common stock | 302,294,000 | 299,705,000 | 297,591,000 | |||
Retained earnings | 364,991,000 | 334,646,000 | 306,804,000 | |||
Accumulated other comprehensive income/(loss) | (35,766,000) | (49,825,000) | (53,244,000) | |||
Total shareholders' equity | 631,519,000 | 584,526,000 | 551,151,000 | |||
Total liabilities and shareholders' equity | $ | 6,180,988,000 | $ | 6,052,161,000 | $ | 5,602,388,000 |
Mercantile Bank Corporation | |||||||||||||
Second Quarter 2025 Results | |||||||||||||
MERCANTILE BANK CORPORATION | |||||||||||||
CONSOLIDATED REPORTS OF INCOME | |||||||||||||
(Unaudited) | |||||||||||||
THREE MONTHS ENDED | THREE MONTHS ENDED | SIX MONTHS ENDED | SIX MONTHS ENDED | ||||||||||
June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | ||||||||||
INTEREST INCOME | |||||||||||||
Loans, including fees | $ | 73,962,000 | $ | 72,819,000 | $ | 145,954,000 | $ | 144,089,000 | |||||
Investment securities | 5,860,000 | 3,624,000 | 11,272,000 | 7,046,000 | |||||||||
Interest-earning assets | 2,136,000 | 2,436,000 | 5,071,000 | 4,469,000 | |||||||||
Total interest income | 81,958,000 | 78,879,000 | 162,297,000 | 155,604,000 | |||||||||
INTEREST EXPENSE | |||||||||||||
Deposits | 25,725,000 | 24,710,000 | 50,918,000 | 46,934,000 | |||||||||
Short-term borrowings | 1,919,000 | 1,757,000 | 3,682,000 | 3,412,000 | |||||||||
Federal Home Loan Bank advances | 2,897,000 | 3,252,000 | 5,795,000 | 6,651,000 | |||||||||
Other borrowed money | 1,938,000 | 2,088,000 | 3,875,000 | 4,173,000 | |||||||||
Total interest expense | 32,479,000 | 31,807,000 | 64,270,000 | 61,170,000 | |||||||||
Net interest income | 49,479,000 | 47,072,000 | 98,027,000 | 94,434,000 | |||||||||
Provision for credit losses | 1,600,000 | 3,500,000 | 3,700,000 | 4,800,000 | |||||||||
Net interest income after | |||||||||||||
provision for credit losses | 47,879,000 | 43,572,000 | 94,327,000 | 89,634,000 | |||||||||
NONINTEREST INCOME | |||||||||||||
Service charges on accounts | 1,967,000 | 1,692,000 | 3,806,000 | 3,224,000 | |||||||||
Mortgage banking income | 3,969,000 | 3,023,000 | 6,620,000 | 5,365,000 | |||||||||
Credit and debit card income | 2,350,000 | 2,266,000 | 4,551,000 | 4,387,000 | |||||||||
Interest rate swap income | 1,230,000 | 766,000 | 1,310,000 | 2,104,000 | |||||||||
Payroll services | 783,000 | 686,000 | 1,823,000 | 1,582,000 | |||||||||
Earnings on bank owned life insurance | 561,000 | 437,000 | 1,104,000 | 1,609,000 | |||||||||
Other income | 602,000 | 811,000 | 950,000 | 2,277,000 | |||||||||
Total noninterest income | 11,462,000 | 9,681,000 | 20,164,000 | 20,548,000 | |||||||||
NONINTEREST EXPENSE | |||||||||||||
Salaries and benefits | 20,711,000 | 17,913,000 | 40,268,000 | 36,150,000 | |||||||||
Occupancy | 2,155,000 | 2,220,000 | 4,273,000 | 4,509,000 | |||||||||
Furniture and equipment | 826,000 | 923,000 | 1,613,000 | 1,852,000 | |||||||||
Data processing costs | 3,599,000 | 3,415,000 | 7,369,000 | 6,704,000 | |||||||||
Charitable foundation contributions | 2,000 | 4,000 | 5,000 | 707,000 | |||||||||
Other expense | 6,086,000 | 5,262,000 | 10,955,000 | 9,758,000 | |||||||||
Total noninterest expense | 33,379,000 | 29,737,000 | 64,483,000 | 59,680,000 | |||||||||
Income before federal income | |||||||||||||
tax expense | 25,962,000 | 23,516,000 | 50,008,000 | 50,502,000 | |||||||||
Federal income tax expense | 3,344,000 | 4,730,000 | 7,853,000 | 10,154,000 | |||||||||
Net Income | $ | 22,618,000 | $ | 18,786,000 | $ | 42,155,000 | $ | 40,348,000 | |||||
Basic earnings per share | |||||||||||||
Diluted earnings per share | |||||||||||||
Average basic shares outstanding | 16,239,919 | 16,122,813 | 16,219,064 | 16,120,836 | |||||||||
Average diluted shares outstanding | 16,239,919 | 16,122,813 | 16,219,064 | 16,120,836 | |||||||||
Mercantile Bank Corporation | ||||||||||||||
Second Quarter 2025 Results | ||||||||||||||
MERCANTILE BANK CORPORATION | ||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS | ||||||||||||||
(Unaudited) | ||||||||||||||
Quarterly | Year-To-Date | |||||||||||||
(dollars in thousands except per share data) | 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||
2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 2025 | 2024 | ||||||||
EARNINGS | ||||||||||||||
Net interest income | $ | 49,479 | 48,548 | 48,361 | 48,292 | 47,072 | 98,027 | 94,434 | ||||||
Provision for credit losses | $ | 1,600 | 2,100 | 1,500 | 1,100 | 3,500 | 3,700 | 4,800 | ||||||
Noninterest income | $ | 11,462 | 8,702 | 10,172 | 9,667 | 9,681 | 20,164 | 20,548 | ||||||
Noninterest expense | $ | 33,379 | 31,104 | 33,806 | 32,303 | 29,737 | 64,483 | 59,680 | ||||||
Net income before federal income | ||||||||||||||
tax expense | $ | 25,962 | 24,046 | 23,227 | 24,556 | 23,516 | 50,008 | 50,502 | ||||||
Net income | $ | 22,618 | 19,537 | 19,626 | 19,618 | 18,786 | 42,155 | 40,348 | ||||||
Basic earnings per share | $ | 1.39 | 1.21 | 1.22 | 1.22 | 1.17 | 2.60 | 2.50 | ||||||
Diluted earnings per share | $ | 1.39 | 1.21 | 1.22 | 1.22 | 1.17 | 2.60 | 2.50 | ||||||
Average basic shares outstanding | 16,239,919 | 16,197,978 | 16,142,578 | 16,138,320 | 16,122,813 | 16,219,064 | 16,120,836 | |||||||
Average diluted shares outstanding | 16,239,919 | 16,197,978 | 16,142,578 | 16,138,320 | 16,122,813 | 16,219,064 | 16,120,836 | |||||||
PERFORMANCE RATIOS | ||||||||||||||
Return on average assets | 1.50 % | 1.32 % | 1.30 % | 1.35 % | 1.36 % | 1.41 % | 1.48 % | |||||||
Return on average equity | 14.72 % | 13.34 % | 13.36 % | 13.73 % | 13.93 % | 14.05 % | 15.15 % | |||||||
Net interest margin (fully tax-equivalent) | 3.49 % | 3.47 % | 3.41 % | 3.52 % | 3.63 % | 3.49 % | 3.68 % | |||||||
Efficiency ratio | 54.77 % | 54.33 % | 57.76 % | 55.73 % | 52.40 % | 54.56 % | 51.90 % | |||||||
Full-time equivalent employees | 692 | 662 | 668 | 653 | 670 | 692 | 670 | |||||||
YIELD ON ASSETS / COST OF FUNDS | ||||||||||||||
Yield on loans | 6.32 % | 6.31 % | 6.41 % | 6.69 % | 6.64 % | 6.31 % | 6.65 % | |||||||
Yield on securities | 2.97 % | 2.79 % | 2.62 % | 2.43 % | 2.30 % | 2.93 % | 2.25 % | |||||||
Yield on interest-earning assets | 4.36 % | 4.40 % | 4.66 % | 5.37 % | 5.28 % | 4.38 % | 5.31 % | |||||||
Yield on total earning assets | 5.77 % | 5.74 % | 5.81 % | 6.08 % | 6.07 % | 5.76 % | 6.06 % | |||||||
Yield on total assets | 5.44 % | 5.42 % | 5.49 % | 5.73 % | 5.72 % | 5.44 % | 5.72 % | |||||||
Cost of deposits | 2.24 % | 2.23 % | 2.36 % | 2.52 % | 2.42 % | 2.23 % | 2.33 % | |||||||
Cost of borrowed funds | 3.61 % | 3.62 % | 3.73 % | 3.75 % | 3.56 % | 3.62 % | 3.53 % | |||||||
Cost of interest-bearing liabilities | 3.09 % | 3.08 % | 3.30 % | 3.53 % | 3.40 % | 3.09 % | 3.33 % | |||||||
Cost of funds (total earning assets) | 2.28 % | 2.27 % | 2.40 % | 2.56 % | 2.44 % | 2.27 % | 2.38 % | |||||||
Cost of funds (total assets) | 2.15 % | 2.14 % | 2.27 % | 2.41 % | 2.31 % | 2.15 % | 2.25 % | |||||||
MORTGAGE BANKING ACTIVITY | ||||||||||||||
Total mortgage loans originated | $ | 141,921 | 100,396 | 121,010 | 160,944 | 122,728 | 242,317 | 202,658 | ||||||
Purchase mortgage loans originated | $ | 111,247 | 81,494 | 82,212 | 122,747 | 103,939 | 192,741 | 161,607 | ||||||
Refinance mortgage loans originated | $ | 30,674 | 18,902 | 38,798 | 38,197 | 18,789 | 49,576 | 41,051 | ||||||
Mortgage loans originated with intent to sell | $ | 112,323 | 80,453 | 100,628 | 128,678 | 91,490 | 192,776 | 150,770 | ||||||
Income on sale of mortgage loans | $ | 3,219 | 2,455 | 3,768 | 3,376 | 2,487 | 5,674 | 4,551 | ||||||
CAPITAL | ||||||||||||||
Tangible equity to tangible assets | 9.49 % | 9.17 % | 8.91 % | 9.10 % | 9.03 % | 9.49 % | 9.03 % | |||||||
Tier 1 leverage capital ratio | 10.93 % | 10.75 % | 10.60 % | 10.68 % | 10.85 % | 10.93 % | 10.85 % | |||||||
Common equity risk-based capital ratio | 10.90 % | 10.90 % | 10.66 % | 10.53 % | 10.46 % | 10.90 % | 10.46 % | |||||||
Tier 1 risk-based capital ratio | 11.75 % | 11.78 % | 11.54 % | 11.42 % | 11.36 % | 11.75 % | 11.36 % | |||||||
Total risk-based capital ratio | 14.37 % | 14.44 % | 14.17 % | 14.13 % | 14.10 % | 14.37 % | 14.10 % | |||||||
Tier 1 capital | $ | 666,068 | 647,795 | 633,134 | 618,038 | 602,835 | 666,068 | 602,835 | ||||||
Tier 1 plus tier 2 capital | $ | 814,796 | 794,143 | 777,857 | 764,653 | 748,097 | 814,796 | 748,097 | ||||||
Total risk-weighted assets | $ | 5,670,571 | 5,499,046 | 5,487,886 | 5,411,628 | 5,306,911 | 5,670,571 | 5,306,911 | ||||||
Book value per common share | $ | 38.87 | 37.47 | 36.20 | 36.14 | 34.15 | 38.87 | 34.15 | ||||||
Tangible book value per common share | $ | 35.82 | 34.42 | 33.14 | 33.07 | 31.09 | 35.82 | 31.09 | ||||||
Cash dividend per common share | $ | 0.37 | 0.37 | 0.36 | 0.36 | 0.35 | 0.74 | 0.70 | ||||||
ASSET QUALITY | ||||||||||||||
Gross loan charge-offs | $ | 38 | 63 | 3,787 | 10 | 26 | 101 | 41 | ||||||
Recoveries | $ | 147 | 175 | 150 | 92 | 296 | 322 | 735 | ||||||
Net loan charge-offs (recoveries) | $ | (109) | (112) | 3,637 | (82) | (270) | (221) | (694) | ||||||
Net loan charge-offs to average loans | (0.01 %) | (0.01 %) | 0.31 % | (0.01 %) | (0.02 %) | (0.01 %) | (0.03 %) | |||||||
Allowance for credit losses | $ | 58,375 | 56,666 | 54,454 | 56,590 | 55,408 | 58,375 | 55,408 | ||||||
Allowance to loans | 1.24 % | 1.22 % | 1.18 % | 1.24 % | 1.25 % | 1.24 % | 1.25 % | |||||||
Nonperforming loans | $ | 9,743 | 5,361 | 5,743 | 9,877 | 9,129 | 9,743 | 9,129 | ||||||
Other real estate/repossessed assets | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Nonperforming loans to total loans | 0.21 % | 0.12 % | 0.12 % | 0.22 % | 0.21 % | 0.21 % | 0.21 % | |||||||
Nonperforming assets to total assets | 0.16 % | 0.09 % | 0.09 % | 0.17 % | 0.16 % | 0.16 % | 0.16 % | |||||||
NONPERFORMING ASSETS - COMPOSITION | ||||||||||||||
Residential real estate: | ||||||||||||||
Land development | $ | 73 | 95 | 97 | 100 | 1 | 73 | 1 | ||||||
Construction | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Owner occupied / rental | $ | 2,411 | 2,968 | 2,878 | 3,008 | 2,288 | 2,411 | 2,288 | ||||||
Commercial real estate: | ||||||||||||||
Land development | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Construction | $ | 5,532 | 0 | 0 | 0 | 0 | 5,532 | 0 | ||||||
Owner occupied | $ | 0 | 41 | 42 | 0 | 0 | 0 | 0 | ||||||
Non-owner occupied | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Non-real estate: | ||||||||||||||
Commercial assets | $ | 1,727 | 2,257 | 2,726 | 6,769 | 6,840 | 1,727 | 6,840 | ||||||
Consumer assets | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Total nonperforming assets | $ | 9,743 | 5,361 | 5,743 | 9,877 | 9,129 | 9,743 | 9,129 | ||||||
NONPERFORMING ASSETS - RECON | ||||||||||||||
Beginning balance | $ | 5,361 | 5,743 | 9,877 | 9,129 | 6,240 | 5,743 | 3,615 | ||||||
Additions | $ | 5,792 | 423 | 224 | 906 | 4,570 | 6,215 | 7,372 | ||||||
Return to performing status | $ | 0 | 0 | (102) | 0 | 0 | 0 | 0 | ||||||
Principal payments | $ | (1,385) | (744) | (515) | (158) | (1,481) | (2,129) | (1,658) | ||||||
Sale proceeds | $ | 0 | 0 | 0 | 0 | (200) | 0 | (200) | ||||||
Loan charge-offs | $ | (25) | (61) | (3,741) | 0 | 0 | (86) | 0 | ||||||
Valuation write-downs | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Ending balance | $ | 9,743 | 5,361 | 5,743 | 9,877 | 9,129 | 9,743 | 9,129 | ||||||
LOAN PORTFOLIO COMPOSITION | ||||||||||||||
Commercial: | ||||||||||||||
Commercial & industrial | $ | 1,375,368 | 1,314,383 | 1,287,308 | 1,312,774 | 1,275,745 | 1,375,368 | 1,275,745 | ||||||
Land development & construction | $ | 67,520 | 68,790 | 66,936 | 66,374 | 76,247 | 67,520 | 76,247 | ||||||
Owner occupied comm'l R/E | $ | 725,106 | 705,645 | 748,837 | 746,714 | 732,844 | 725,106 | 732,844 | ||||||
Non-owner occupied comm'l R/E | $ | 1,134,012 | 1,183,728 | 1,128,404 | 1,095,988 | 1,059,052 | 1,134,012 | 1,059,052 | ||||||
Multi-family & residential rental | $ | 519,152 | 479,045 | 475,819 | 426,438 | 389,390 | 519,152 | 389,390 | ||||||
Total commercial | $ | 3,821,158 | 3,751,591 | 3,707,304 | 3,648,288 | 3,533,278 | 3,821,158 | 3,533,278 | ||||||
Retail: | ||||||||||||||
1-4 family mortgages | $ | 799,426 | 817,212 | 827,597 | 844,093 | 849,626 | 799,426 | 849,626 | ||||||
Other consumer | $ | 77,435 | 67,746 | 65,880 | 60,637 | 55,341 | 77,435 | 55,341 | ||||||
Total retail | $ | 876,861 | 884,958 | 893,477 | 904,730 | 904,967 | 876,861 | 904,967 | ||||||
Total loans | $ | 4,698,019 | 4,636,549 | 4,600,781 | 4,553,018 | 4,438,245 | 4,698,019 | 4,438,245 | ||||||
END OF PERIOD BALANCES | ||||||||||||||
Loans | $ | 4,698,019 | 4,636,549 | 4,600,781 | 4,553,018 | 4,438,245 | 4,698,019 | 4,438,245 | ||||||
Securities | $ | 847,928 | 809,096 | 751,865 | 724,888 | 669,420 | 847,928 | 669,420 | ||||||
Interest-earning assets | $ | 197,172 | 315,140 | 336,019 | 240,780 | 135,766 | 197,172 | 135,766 | ||||||
Total earning assets (before allowance) | $ | 5,743,119 | 5,760,785 | 5,688,665 | 5,518,686 | 5,243,431 | 5,743,119 | 5,243,431 | ||||||
Total assets | $ | 6,180,988 | 6,141,200 | 6,052,161 | 5,917,127 | 5,602,388 | 6,180,988 | 5,602,388 | ||||||
Noninterest-bearing deposits | $ | 1,180,801 | 1,173,499 | 1,264,523 | 1,182,219 | 1,119,888 | 1,180,801 | 1,119,888 | ||||||
Interest-bearing deposits | $ | 3,529,671 | 3,508,286 | 3,433,843 | 3,273,679 | 3,026,686 | 3,529,671 | 3,026,686 | ||||||
Total deposits | $ | 4,710,472 | 4,681,785 | 4,698,366 | 4,455,898 | 4,146,574 | 4,710,472 | 4,146,574 | ||||||
Total borrowed funds | $ | 740,685 | 749,711 | 649,528 | 778,669 | 789,327 | 740,685 | 789,327 | ||||||
Total interest-bearing liabilities | $ | 4,270,356 | 4,257,997 | 4,083,371 | 4,052,348 | 3,816,013 | 4,270,356 | 3,816,013 | ||||||
Shareholders' equity | $ | 631,519 | 608,346 | 584,526 | 583,311 | 551,151 | 631,519 | 551,151 | ||||||
AVERAGE BALANCES | ||||||||||||||
Loans | $ | 4,695,367 | 4,629,098 | 4,565,837 | 4,467,365 | 4,396,475 | 4,662,415 | 4,347,819 | ||||||
Securities | $ | 824,777 | 784,608 | 742,145 | 699,872 | 640,627 | 804,804 | 637,363 | ||||||
Interest-earning assets | $ | 193,637 | 266,871 | 330,490 | 284,187 | 182,636 | 230,051 | 166,435 | ||||||
Total earning assets (before allowance) | $ | 5,713,781 | 5,680,577 | 5,638,472 | 5,451,424 | 5,219,738 | 5,697,270 | 5,151,617 | ||||||
Total assets | $ | 6,061,819 | 6,018,158 | 5,967,036 | 5,781,111 | 5,533,262 | 6,040,109 | 5,458,969 | ||||||
Noninterest-bearing deposits | $ | 1,152,631 | 1,144,781 | 1,188,561 | 1,191,642 | 1,139,887 | 1,149,359 | 1,157,886 | ||||||
Interest-bearing deposits | $ | 3,463,067 | 3,443,770 | 3,335,477 | 3,145,799 | 2,957,011 | 3,452,840 | 2,873,659 | ||||||
Total deposits | $ | 4,615,698 | 4,588,551 | 4,524,038 | 4,337,441 | 4,096,898 | 4,602,199 | 4,031,545 | ||||||
Total borrowed funds | $ | 749,811 | 738,628 | 770,838 | 796,077 | 800,577 | 744,250 | 808,713 | ||||||
Total interest-bearing liabilities | $ | 4,212,878 | 4,182,398 | 4,106,315 | 3,941,876 | 3,757,588 | 4,197,090 | 3,682,372 | ||||||
Shareholders' equity | $ | 616,229 | 594,145 | 582,829 | 566,852 | 540,868 | 605,248 | 534,024 | ||||||
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SOURCE Mercantile Bank Corporation
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