Mercantile Bank Corporation Announces Solid First Quarter 2026 Results
Rhea-AI Summary
Mercantile Bank Corporation (NASDAQ: MBWM) reported net income of $22.7M (EPS $1.32) for Q1 2026 and adjusted net income of $25.2M (adjusted EPS $1.46). Net revenue rose >18% YoY driven by net interest income (+15%) and noninterest income (+34%). Tangible book value per share was $37.34. Total assets were $6.95B and deposits totaled $5.42B, with local deposits up $185M and loan-to-deposit ratio down to ~89%. Net interest margin was 3.55% and the company recorded a negative provision for credit losses of $1.8M.
Positive
- Net revenue +18% year-over-year
- Net interest income +15% year-over-year
- Tangible book value $37.34 per share
- Total deposits $5.42 billion; local deposits +$185M
- Loan-to-deposit ratio reduced to ~89%
Negative
- Noninterest expense $42.1M, up from $31.1M
- Noninterest expense excluding one‑time items +25%
- Total loans decreased $5.2M (residential mortgage declines)
- Yield on loans down to 6.04% from 6.28%
News Market Reaction – MBWM
In the Apr 21 session, MBWM declined 3.44%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Oct 21 | Q3 2025 earnings | Positive | +0.6% | Q3 2025 net income growth, net interest expansion, lower effective tax rate. |
| Apr 22 | Q1 2025 earnings | Neutral | +3.5% | Mixed Q1 2025 results with modest revenue dip but solid asset quality and capital. |
| Jan 21 | Q4 2024 earnings | Positive | +5.8% | Robust Q4 2024 and full-year 2024 with strong growth and deposit inflows. |
| Oct 15 | Q3 2024 earnings | Positive | +2.7% | Strong Q3 2024 with deposit and loan growth and improving loan-to-deposit ratio. |
| Jul 16 | Q2 2024 earnings | Positive | +12.1% | Q2 2024 net income with strong growth in deposits, loans, and noninterest income. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have consistently coincided with positive price reactions, indicating the market has typically rewarded Mercantile’s results and balance sheet trends.
Over the past two years, Mercantile’s earnings reports have highlighted steady net interest income expansion, strong local deposit growth, and solid asset quality. Prior quarters showed rising tangible book value per share, improving loan-to-deposit ratios, and well-capitalized status with risk-based capital ratios around the mid-teens. These themes continue in the new Q1 2026 report, which again emphasizes net revenue growth, margin resilience in a lower-rate environment, and very low nonperforming assets, building on the same earnings trajectory seen since 2024.
Key Terms
net interest income financial
net interest margin financial
provision for credit losses financial
loan-to-deposit ratio financial
nonperforming assets financial
basis points financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Growth in net interest income and key fee income categories with ongoing strength in asset quality measures and capital levels highlight the quarter
Excluding after-tax one-time costs associated with the year-end 2025 acquisition of Eastern Michigan Financial Corporation and previously announced core and digital banking system conversion (a non-GAAP measurement), net income improved to
"Our financial performance remained strong during the first quarter of 2026, further demonstrating our ability to effectively administer the prolonged period of global economic uncertainty and increasing geopolitical tensions," said Ray Reitsma, President and Chief Executive Officer of Mercantile. "The solid operating results reflected increased net interest income, an improved net interest margin, strong growth in treasury management fees, interest rate swap income, mortgage banking income, and payroll services fees, a negative provision for credit losses, robust local deposit growth, and sustained strength in asset quality and capital measures. The strong net growth in local deposits, which occurred despite the typical level of seasonal deposit withdrawals, provided for a further reduction in our loan-to-deposit ratio. The first quarter of 2026 represented the initial period of financial performance that included Eastern Michigan Bank's operating results."
First quarter highlights include:
- Return on average assets of 1.4 percent and return on average equity of 12.5 percent, and 1.5 percent and 14.0 percent, respectively, on a non-GAAP basis
- Tangible book value per common share of
$37.34 $0.56 $2.92 - Net revenue expansion of over 18 percent compared to the prior-year first quarter, including net interest income growth of over 15 percent
- Increased net interest margin primarily reflecting lower cost of funds and continued repricing of matured fixed rate loans and securities
- Notable increases in treasury management fees, mortgage banking income, and payroll services fees of approximately 26 percent, 12 percent, and 5 percent, respectively
- Decline in effective tax rate from approximately 19 percent during the first quarter of 2025 to 17 percent during the first quarter of 2026 largely due to an increase in aggregate tax benefits derived from the acquisition of transferable energy tax credits and net benefits from low-income housing and historical tax credit investments
- Continued strength in commercial loan pipeline
- Sustained low levels of nonperforming assets, past due loans, and loan charge-offs
- Notable reduction in loan-to-deposit ratio from approximately 99 percent as of March 31, 2025, and 91 percent as of December 31, 2025, to approximately 89 percent as of March 31, 2026, mainly reflecting robust local deposit growth
- Strong tangible and regulatory capital positions
Operating Results
Net revenue, consisting of net interest income and noninterest income, was
The net interest margin was 3.55 percent in the first quarter of 2026, up from 3.47 percent in the prior-year first quarter. The yield on average earning assets was 5.42 percent during the first three months of 2026, a decrease from 5.73 percent during the respective 2025 period. The lower yield mainly stemmed from a reduced yield on loans and a change in earning asset mix, which more than offset an improved yield on securities resulting from the reinvestment of relatively low-yielding bonds and portfolio expansion activities, along with the positive impact resulting from the addition of Eastern Michigan Bank's securities portfolio. The yield on loans was 6.04 percent during the first quarter of 2026, down from 6.28 percent during the first quarter of 2025, primarily due to reduced 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 25 basis points in each of September, October, and December of 2025, during which time average variable-rate commercial loans represented approximately 77 percent of average total commercial loans. Denoting the success of a strategic initiative to lower the loan-to-deposit ratio and increase on-balance sheet liquidity and reflecting the impact of Eastern Michigan Bank's liquid balance sheet, higher-yielding loans represented a decreased percentage of earning assets and lower-yielding securities accounted for an increased percentage of earning assets in the first quarter of 2026 compared to the first quarter of 2025. The yield on securities equaled 3.27 percent during the first quarter of 2026, up from 2.73 percent during the prior-year first quarter. The yield on other interest-earning assets, largely consisting of funds on deposit with the Federal Reserve Bank of
During the first quarter of 2026, the cost of funds was 1.87 percent, down from 2.26 percent during the first quarter of 2025, mainly due to lower rates paid on money market accounts and time deposits, reflecting the decreased interest rate environment. An increase in low-cost deposit products as a percentage of total funding sources, primarily stemming from the onboarding of Eastern Michigan Bank's deposit base, also contributed to the reduced cost of funds.
Mercantile recorded a negative provision for credit losses of
Noninterest income totaled
Noninterest expense totaled
Federal income tax expense was
Mr. Reitsma commented, "The notable increase in net interest income during the first quarter of 2026 reflected solid earning asset growth and a lower cost of funds. Our net interest margin, which remained healthy during the quarter, has been relatively steady over the past seven quarters despite a declining interest rate environment, reflecting the success of interest rate risk mitigation strategies employed to achieve an interest rate agnostic position. We are very pleased with the higher levels of treasury management fees, interest rate swap income, mortgage banking income, and payroll services fees, and will continue our efforts to expand existing customers' relationships and gain new client relationships to enhance noninterest income revenue streams. Growing our balance sheet in a cost-conscious manner while continuing to provide our customers with outstanding service and market-leading products and services to meet their needs remain important strategic objectives. Excluding costs related to the core and digital banking system conversion and acquisition of Eastern Michigan Financial Corporation, overhead costs as a percentage of net revenue during the first quarter of 2026 increased only slightly compared to the first quarter of 2025."
Balance Sheet
Total assets were
As of March 31, 2026, 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 together represented approximately 57 percent of total commercial loans as of March 31, 2026, a level that has remained relatively consistent with prior periods and in line with our expectations.
Total deposits equaled
Mr. Reitsma noted, "The commercial loan portfolio expanded during the first quarter of 2026 despite elevated levels of payoffs and line of credit paydowns, reflecting sustained strength in loan originations. We expect payoffs and paydowns to revert to historical levels during the remainder of 2026. Based on our current pipeline and continuing discussions with existing and prospective borrowers, we believe plentiful opportunities to book commercial loans will exist in future periods. We are pleased with the notable growth in local deposits and the associated decline in our loan-to-deposit ratio during the current-year first quarter, and we will continue our efforts to fund loan originations and investment purchases through local deposit expansion."
Asset Quality
Nonperforming assets totaled
Mr. Reitsma remarked, "Our asset quality measures remained strong during the first quarter of 2026 as evidenced by ongoing low levels of nonperforming assets, past due loans, and loan charge-offs. We remain focused on underwriting loans across all portfolio segments in a sound and disciplined manner and detecting any weakening credit relationships and evolving systemic or sector-specific credit issues as soon as possible to minimize the impact of such on our overall financial position. Our borrowers have continued to operate effectively during the prolonged and continuing period of uncertain macro-economic conditions and heightened geopolitical concerns."
Capital Position
Shareholders' equity totaled
Mercantile reported 17,274,356 total shares outstanding as of March 31, 2026.
Mr. Reitsma concluded, "Our sustained financial strength allowed us to continue our regular cash dividend program and once again provide shareholders with meaningful cash returns on their investments. We believe we are well positioned to effectively address any issues emerging from the ongoing uncertainty surrounding macro-economic and operating conditions as a result of continuing strength in our operating results, asset quality metrics, and capital measures, along with the attainment of solid financial performance in future periods as anticipated. Our unwavering commitment to meet clients' needs has proven to be successful in retaining existing and securing new relationships, and we believe the continuation of these efforts will afford us with plentiful opportunities to originate loans and generate local deposits in future periods."
Investor Presentation
Mercantile has prepared presentation materials that management intends to use during its previously announced first quarter 2026 conference call on Tuesday, April 21, 2026, 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
Reconciliation of
This news release contains certain non-GAAP financial measures, including adjusted net income and adjusted diluted earnings per share, each of which excludes after-tax costs associated with (i) Mercantile's acquisition of Eastern Michigan Financial Corporation that was completed during the fourth quarter of 2025 (
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 difficulties and delays in the integration of Mercantile Bank and Eastern Michigan Bank and achieving anticipated synergies, cost savings and other benefits from the transaction; 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 | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(Unaudited) | ||||||
MARCH 31, | DECEMBER 31, | MARCH 31, | ||||
2026 | 2025 | 2025 | ||||
ASSETS | ||||||
Cash and due from banks | $ | 48,431,000 | $ | 54,755,000 | $ | 70,320,000 |
Interest-earning deposits and Federal Funds sold | 530,873,000 | 418,569,000 | 315,140,000 | |||
Total cash and cash equivalents | 579,304,000 | 473,324,000 | 385,460,000 | |||
Securities available for sale | 1,125,433,000 | 1,102,230,000 | 787,583,000 | |||
Mortgage loans held for sale | 21,748,000 | 17,160,000 | 15,192,000 | |||
Loans | 4,816,693,000 | 4,821,888,000 | 4,636,549,000 | |||
Allowance for credit losses | (56,736,000) | (58,191,000) | (56,666,000) | |||
Loans, net | 4,759,957,000 | 4,763,697,000 | 4,579,883,000 | |||
Premises and equipment, net | 61,861,000 | 62,468,000 | 53,693,000 | |||
Bank owned life insurance | 105,862,000 | 105,342,000 | 94,417,000 | |||
Goodwill | 73,689,000 | 72,656,000 | 49,473,000 | |||
Core deposit intangible asset, net | 18,173,000 | 20,388,000 | 0 | |||
Other assets | 199,008,000 | 217,954,000 | 175,499,000 | |||
Total assets | $ | 6,945,035,000 | $ | 6,835,219,000 | $ | 6,141,200,000 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Deposits: | ||||||
Noninterest-bearing | $ | 1,331,947,000 | $ | 1,339,666,000 | $ | 1,173,499,000 |
Interest-bearing | 4,087,571,000 | 3,944,786,000 | 3,508,286,000 | |||
Total deposits | 5,419,518,000 | 5,284,452,000 | 4,681,785,000 | |||
Securities sold under agreements to repurchase | 219,513,000 | 232,291,000 | 242,102,000 | |||
Federal Home Loan Bank advances | 315,322,000 | 326,221,000 | 366,221,000 | |||
Subordinated debentures | 51,186,000 | 51,015,000 | 50,501,000 | |||
Subordinated notes | 89,743,000 | 89,657,000 | 89,400,000 | |||
Term note | 27,500,000 | 30,000,000 | 0 | |||
Accrued interest and other liabilities | 85,306,000 | 96,699,000 | 102,845,000 | |||
Total liabilities | 6,208,088,000 | 6,110,335,000 | 5,532,854,000 | |||
SHAREHOLDERS' EQUITY | ||||||
Common stock | 350,645,000 | 349,431,000 | 300,732,000 | |||
Retained earnings | 415,499,000 | 399,448,000 | 348,281,000 | |||
Accumulated other comprehensive income/(loss) | (29,197,000) | (23,995,000) | (40,667,000) | |||
Total shareholders' equity | 736,947,000 | 724,884,000 | 608,346,000 | |||
Total liabilities and shareholders' equity | $ | 6,945,035,000 | $ | 6,835,219,000 | $ | 6,141,200,000 |
MERCANTILE BANK CORPORATION | |||||||
CONSOLIDATED REPORTS OF INCOME | |||||||
(Unaudited) | |||||||
THREE MONTHS ENDED | THREE MONTHS ENDED | ||||||
March 31, 2026 | March 31, 2025 | ||||||
INTEREST INCOME | |||||||
Loans, including fees | $ | 71,897,000 | $ | 71,730,000 | |||
Investment securities | 8,849,000 | 4,957,000 | |||||
Other interest-earning assets | 4,680,000 | 3,651,000 | |||||
Total interest income | 85,426,000 | 80,338,000 | |||||
INTEREST EXPENSE | |||||||
Deposits | 23,247,000 | 25,192,000 | |||||
Short-term borrowings | 1,479,000 | 1,763,000 | |||||
Federal Home Loan Bank advances | 2,556,000 | 2,898,000 | |||||
Other borrowed money | 2,243,000 | 1,937,000 | |||||
Total interest expense | 29,525,000 | 31,790,000 | |||||
Net interest income | 55,901,000 | 48,548,000 | |||||
Provision for credit losses | (1,800,000) | 2,100,000 | |||||
Net interest income after | |||||||
provision for credit losses | 57,701,000 | 46,448,000 | |||||
NONINTEREST INCOME | |||||||
Service charges on accounts | 2,484,000 | 1,839,000 | |||||
Mortgage banking income | 2,980,000 | 2,651,000 | |||||
Credit and debit card income | 2,588,000 | 2,201,000 | |||||
Interest rate swap income | 663,000 | 80,000 | |||||
Payroll services | 1,094,000 | 1,040,000 | |||||
Earnings on bank owned life insurance | 665,000 | 543,000 | |||||
Other income | 1,214,000 | 348,000 | |||||
Total noninterest income | 11,688,000 | 8,702,000 | |||||
NONINTEREST EXPENSE | |||||||
Salaries and benefits | 23,679,000 | 19,557,000 | |||||
Occupancy | 2,416,000 | 2,118,000 | |||||
Furniture and equipment | 962,000 | 787,000 | |||||
Data processing costs | 4,430,000 | 3,770,000 | |||||
Core conversion costs | 2,915,000 | 0 | |||||
Acquisition costs | 300,000 | 0 | |||||
Core deposit intangible amortization | 865,000 | 0 | |||||
Other expense | 6,540,000 | 4,872,000 | |||||
Total noninterest expense | 42,107,000 | 31,104,000 | |||||
Income before federal income | |||||||
tax expense | 27,282,000 | 24,046,000 | |||||
Federal income tax expense | 4,597,000 | 4,509,000 | |||||
Net Income | $ | 22,685,000 | $ | 19,537,000 | |||
Basic earnings per share | |||||||
Diluted earnings per share | |||||||
Average basic shares outstanding | 17,237,249 | 16,197,978 | |||||
Average diluted shares outstanding | 17,237,249 | 16,197,978 | |||||
MERCANTILE BANK CORPORATION | ||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS | ||||||||||
(Unaudited) | ||||||||||
Quarterly | ||||||||||
(dollars in thousands except per share data) | 2026 | 2025 | 2025 | 2025 | 2025 | |||||
1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | ||||||
EARNINGS | ||||||||||
Net interest income | $ | 55,901 | 51,015 | 52,002 | 49,479 | 48,548 | ||||
Provision for credit losses | $ | (1,800) | (700) | 200 | 1,600 | 2,100 | ||||
Noninterest income | $ | 11,688 | 11,056 | 10,388 | 11,462 | 8,702 | ||||
Noninterest expense | $ | 42,107 | 36,726 | 34,750 | 33,379 | 31,104 | ||||
Net income before federal income | ||||||||||
tax expense | $ | 27,282 | 26,045 | 27,440 | 25,962 | 24,046 | ||||
Net income | $ | 22,685 | 22,841 | 23,758 | 22,618 | 19,537 | ||||
Basic earnings per share | $ | 1.32 | 1.40 | 1.46 | 1.39 | 1.21 | ||||
Diluted earnings per share | $ | 1.32 | 1.40 | 1.46 | 1.39 | 1.21 | ||||
Average basic shares outstanding | 17,237,249 | 16,263,884 | 16,249,267 | 16,239,919 | 16,197,978 | |||||
Average diluted shares outstanding | 17,237,249 | 16,263,884 | 16,249,267 | 16,239,919 | 16,197,978 | |||||
PERFORMANCE RATIOS | ||||||||||
Return on average assets | 1.35 % | 1.44 % | 1.50 % | 1.50 % | 1.32 % | |||||
Return on average equity | 12.54 % | 13.50 % | 14.72 % | 14.72 % | 13.34 % | |||||
Net interest margin (fully tax-equivalent) | 3.55 % | 3.43 % | 3.49 % | 3.48 % | 3.47 % | |||||
Efficiency ratio | 62.30 % | 59.17 % | 55.70 % | 54.77 % | 54.33 % | |||||
Full-time equivalent employees | 766 | 770 | 683 | 692 | 662 | |||||
YIELD ON ASSETS / COST OF FUNDS | ||||||||||
Yield on loans | 6.04 % | 6.12 % | 6.35 % | 6.29 % | 6.28 % | |||||
Yield on securities | 3.27 % | 2.96 % | 2.90 % | 2.82 % | 2.73 % | |||||
Yield on other interest-earning assets | 4.00 % | 4.25 % | 4.63 % | 4.91 % | 4.80 % | |||||
Yield on total earning assets | 5.42 % | 5.52 % | 5.74 % | 5.75 % | 5.73 % | |||||
Yield on total assets | 5.09 % | 5.20 % | 5.41 % | 5.44 % | 5.43 % | |||||
Cost of deposits | 1.77 % | 2.04 % | 2.20 % | 2.24 % | 2.23 % | |||||
Cost of borrowed funds | 3.58 % | 3.56 % | 3.61 % | 3.61 % | 3.62 % | |||||
Cost of interest-bearing liabilities | 2.54 % | 2.87 % | 3.06 % | 3.09 % | 3.08 % | |||||
Cost of funds (total earning assets) | 1.87 % | 2.09 % | 2.25 % | 2.27 % | 2.26 % | |||||
Cost of funds (total assets) | 1.75 % | 1.97 % | 2.12 % | 2.15 % | 2.14 % | |||||
MORTGAGE BANKING ACTIVITY | ||||||||||
Total mortgage loans originated | $ | 127,939 | 141,451 | 136,840 | 141,921 | 100,396 | ||||
Purchase/construction mortgage loans originated | $ | 68,769 | 85,973 | 107,993 | 111,247 | 81,494 | ||||
Refinance mortgage loans originated | $ | 59,170 | 55,478 | 28,847 | 30,674 | 18,902 | ||||
Mortgage loans originated with intent to sell | $ | 105,873 | 116,886 | 111,334 | 112,323 | 80,453 | ||||
Income on sale of mortgage loans | $ | 3,049 | 3,375 | 3,482 | 3,219 | 2,455 | ||||
CAPITAL | ||||||||||
Tangible equity to tangible assets | 9.41 % | 9.37 % | 9.72 % | 9.49 % | 9.17 % | |||||
Tier 1 leverage capital ratio | 10.61 % | 11.30 % | 10.90 % | 10.93 % | 10.75 % | |||||
Common equity risk-based capital ratio | 11.27 % | 11.01 % | 11.33 % | 10.90 % | 10.90 % | |||||
Tier 1 risk-based capital ratio | 12.09 % | 11.83 % | 12.20 % | 11.75 % | 11.78 % | |||||
Total risk-based capital ratio | 14.59 % | 14.35 % | 14.87 % | 14.37 % | 14.44 % | |||||
Tier 1 capital | $ | 723,395 | 704,776 | 685,440 | 666,068 | 647,795 | ||||
Tier 1 plus tier 2 capital | $ | 872,668 | 854,876 | 835,263 | 814,796 | 794,143 | ||||
Total risk-weighted assets | $ | 5,981,420 | 5,958,763 | 5,617,005 | 5,670,571 | 5,499,046 | ||||
Book value per common share | $ | 42.66 | 42.19 | 40.46 | 38.87 | 37.47 | ||||
Tangible book value per common share | $ | 37.34 | 36.78 | 37.41 | 35.82 | 34.42 | ||||
Cash dividend per common share | $ | 0.39 | 0.38 | 0.38 | 0.37 | 0.37 | ||||
ASSET QUALITY | ||||||||||
Gross loan charge-offs | $ | 5 | 2,842 | 172 | 38 | 63 | ||||
Recoveries | $ | 351 | 206 | 726 | 147 | 175 | ||||
Net loan charge-offs (recoveries) | $ | (346) | 2,636 | (554) | (109) | (112) | ||||
Net loan charge-offs (recoveries) to average loans | (0.03 %) | 0.23 % | (0.05 %) | (0.01 %) | (0.01 %) | |||||
Allowance for credit losses | $ | 56,736 | 58,191 | 59,129 | 58,375 | 56,666 | ||||
Allowance to loans | 1.18 % | 1.21 % | 1.28 % | 1.24 % | 1.22 % | |||||
Nonperforming loans | $ | 7,543 | 7,870 | 9,844 | 9,743 | 5,361 | ||||
Other real estate/repossessed assets | $ | 0 | 0 | 0 | 0 | 0 | ||||
Nonperforming loans to total loans | 0.16 % | 0.16 % | 0.21 % | 0.21 % | 0.12 % | |||||
Nonperforming assets to total assets | 0.11 % | 0.12 % | 0.16 % | 0.16 % | 0.09 % | |||||
NONPERFORMING ASSETS - COMPOSITION | ||||||||||
Commercial: | ||||||||||
Commercial & industrial | $ | 1,122 | 1,393 | 1,509 | 1,727 | 2,257 | ||||
Land development & construction | $ | 0 | 201 | 0 | 0 | 0 | ||||
Owner occupied comm'l R/E | $ | 494 | 517 | 0 | 0 | 41 | ||||
Non-owner occupied comm'l R/E | $ | 2,732 | 2,732 | 5,532 | 5,532 | 0 | ||||
Multi-family & residential rental | $ | 0 | 0 | 0 | 0 | 0 | ||||
Total commercial | $ | 4,348 | 4,843 | 7,041 | 7,259 | 2,298 | ||||
Retail: | ||||||||||
1-4 family mortgages | $ | 3,114 | 2,971 | 2,767 | 2,484 | 3,063 | ||||
Other consumer | $ | 81 | 56 | 36 | 0 | 0 | ||||
Total retail | $ | 3,195 | 3,027 | 2,803 | 2,484 | 3,063 | ||||
Total nonperforming assets | $ | 7,543 | 7,870 | 9,844 | 9,743 | 5,361 | ||||
NONPERFORMING ASSETS - RECON | ||||||||||
Beginning balance | $ | 7,870 | 9,844 | 9,743 | 5,361 | 5,743 | ||||
Additions | $ | 410 | 1,299 | 426 | 5,792 | 423 | ||||
Return to performing status | $ | (12) | 0 | (27) | 0 | 0 | ||||
Principal payments | $ | (725) | (466) | (222) | (1,385) | (744) | ||||
Sale proceeds | $ | 0 | 0 | 0 | 0 | 0 | ||||
Loan charge-offs | $ | 0 | (2,807) | (76) | (25) | (61) | ||||
Valuation write-downs | $ | 0 | 0 | 0 | 0 | 0 | ||||
Ending balance | $ | 7,543 | 7,870 | 9,844 | 9,743 | 5,361 | ||||
LOAN PORTFOLIO COMPOSITION | ||||||||||
Commercial: | ||||||||||
Commercial & industrial | $ | 1,429,830 | 1,374,522 | 1,337,729 | 1,375,368 | 1,314,383 | ||||
Land development & construction | $ | 119,560 | 117,373 | 70,806 | 67,520 | 68,790 | ||||
Owner occupied comm'l R/E | $ | 799,066 | 778,869 | 729,451 | 725,106 | 705,645 | ||||
Non-owner occupied comm'l R/E | $ | 1,101,758 | 1,110,674 | 1,091,210 | 1,134,012 | 1,183,728 | ||||
Multi-family & residential rental | $ | 485,175 | 537,224 | 521,111 | 519,152 | 479,045 | ||||
Total commercial | $ | 3,935,389 | 3,918,662 | 3,750,307 | 3,821,158 | 3,751,591 | ||||
Retail: | ||||||||||
1-4 family mortgages | $ | 768,237 | 790,857 | 780,917 | 799,426 | 817,212 | ||||
Other consumer | $ | 113,067 | 112,369 | 83,936 | 77,435 | 67,746 | ||||
Total retail | $ | 881,304 | 903,226 | 864,853 | 876,861 | 884,958 | ||||
Total loans | $ | 4,816,693 | 4,821,888 | 4,615,160 | 4,698,019 | 4,636,549 | ||||
END OF PERIOD BALANCES | ||||||||||
Loans | $ | 4,816,693 | 4,821,888 | 4,615,160 | 4,698,019 | 4,636,549 | ||||
Securities | $ | 1,125,433 | 1,102,230 | 855,138 | 826,415 | 787,583 | ||||
Other interest-earning assets | $ | 577,619 | 458,548 | 457,373 | 246,254 | 351,846 | ||||
Total earning assets (before allowance) | $ | 6,519,745 | 6,382,666 | 5,927,671 | 5,770,688 | 5,775,978 | ||||
Total assets | $ | 6,945,035 | 6,835,219 | 6,308,487 | 6,180,988 | 6,141,200 | ||||
Noninterest-bearing deposits | $ | 1,331,947 | 1,339,666 | 1,182,775 | 1,180,801 | 1,173,499 | ||||
Interest-bearing deposits | $ | 4,087,571 | 3,944,786 | 3,629,038 | 3,529,671 | 3,508,286 | ||||
Total deposits | $ | 5,419,518 | 5,284,452 | 4,811,813 | 4,710,472 | 4,681,785 | ||||
Total borrowed funds | $ | 704,853 | 730,778 | 739,688 | 740,685 | 749,711 | ||||
Total interest-bearing liabilities | $ | 4,792,424 | 4,675,564 | 4,368,726 | 4,270,356 | 4,257,997 | ||||
Shareholders' equity | $ | 736,947 | 724,884 | 657,630 | 631,519 | 608,346 | ||||
AVERAGE BALANCES | ||||||||||
Loans | $ | 4,828,031 | 4,627,544 | 4,668,173 | 4,695,367 | 4,629,098 | ||||
Securities | $ | 1,119,988 | 880,619 | 841,853 | 803,264 | 763,095 | ||||
Other interest-earning assets | $ | 467,991 | 426,758 | 433,055 | 235,965 | 304,325 | ||||
Total earning assets (before allowance) | $ | 6,416,010 | 5,934,921 | 5,943,081 | 5,734,596 | 5,696,518 | ||||
Total assets | $ | 6,837,239 | 6,296,341 | 6,294,841 | 6,061,819 | 6,018,158 | ||||
Noninterest-bearing deposits | $ | 1,318,537 | 1,227,100 | 1,215,918 | 1,152,631 | 1,144,781 | ||||
Interest-bearing deposits | $ | 3,999,141 | 3,599,012 | 3,610,600 | 3,463,067 | 3,443,770 | ||||
Total deposits | $ | 5,317,678 | 4,826,112 | 4,826,518 | 4,615,698 | 4,588,551 | ||||
Total borrowed funds | $ | 712,240 | 720,499 | 749,679 | 749,811 | 738,628 | ||||
Total interest-bearing liabilities | $ | 4,711,381 | 4,319,511 | 4,360,279 | 4,212,878 | 4,182,398 | ||||
Shareholders' equity | $ | 733,366 | 671,029 | 640,495 | 616,229 | 594,145 | ||||
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SOURCE Mercantile Bank Corporation