Mercantile Bank Corporation Announces Strong Fourth Quarter and Full-Year 2025 Results
Rhea-AI Summary
Mercantile Bank Corporation (NASDAQ: MBWM) reported net income of $22.8M in Q4 2025 and $88.8M for full-year 2025, vs. $19.6M and $79.6M a year earlier. Key drivers included ~5% growth in net interest income, higher treasury management, mortgage banking and payroll services fees, a lower effective tax rate (14.2% in 2025 vs 19.0% in 2024), and a reduced provision for credit losses in Q4. Mercantile completed the acquisition of Eastern Michigan Financial Corporation (added $572M in assets) on December 31, 2025. Total assets grew to $6.84B and tangible book value per share rose to $36.78 (≈11% increase).
Positive
- Full-year net income +11.6% to $88.8M
- Completed Eastern acquisition adding $572M assets
- Tangible book value per share $36.78 (+11%)
- Net interest income growth ~5% in 2025
- Payroll services fees +14% year-over-year
- Effective tax rate down to 14.2% from 19.0%
Negative
- Net interest margin down to 3.47% from 3.58% in 2024
- Total noninterest expense rose to $136M in 2025
- Yield on loans decreased to 6.26% from 6.59% in 2024
News Market Reaction
On the day this news was published, MBWM gained 0.78%, reflecting a mild positive market reaction. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $7M to the company's valuation, bringing the market cap to $874M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
MBWM was down 0.44% pre-release while peers were mixed: HBT +0.18%, MCBS +0.29%, NBBK -1.94%, EQBK -0.42%, CPF -0.96%, suggesting stock-specific focus on its fundamentals rather than a clean sector trend.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 31 | Merger completion | Positive | -1.0% | Closed Eastern Michigan Financial merger expanding presence in Eastern Michigan. |
| Dec 29 | Earnings call notice | Neutral | -0.7% | Announced timing of Q4 and full-year 2025 results call and webcast. |
| Dec 16 | Reg. approvals M&A | Positive | -1.2% | Received all required regulatory approvals for pending Eastern merger. |
| Oct 21 | Q3 2025 earnings | Positive | +0.6% | Reported higher Q3 2025 net income and EPS with solid balance sheet growth. |
| Oct 21 | Dividend increase | Positive | +0.6% | Declared higher quarterly cash dividend implying roughly 3.4% annual yield. |
Recent news shows a tendency for mild positive alignment on core earnings/dividend updates, but modest negative reactions around Eastern acquisition milestones.
Over the last few months, Mercantile highlighted multiple milestones, including the Eastern Michigan Financial merger agreement and subsequent regulatory approvals, culminating in merger completion on Dec 31, 2025. Core performance remained solid, with Q3 2025 net income of $23.8M and a higher dividend of $0.38 per share (about 3.4% yield). Market reactions were mildly positive to earnings and dividend news but slightly negative around acquisition updates, framing today’s strong 2025 results within an ongoing expansion strategy.
Market Pulse Summary
This announcement details strong fourth quarter and full-year 2025 performance, with net income of $22.8M for Q4 and $88.8M for the year, EPS of $5.47, and tangible book value of $36.78. It also highlights completion of the Eastern Michigan Financial acquisition, adding $572M in assets and supporting deposit growth and a lower loan-to-deposit ratio. Investors may track future net interest margin trends, integration progress, asset quality metrics, and fee income growth relative to these baselines.
Key Terms
net interest income financial
noninterest income financial
net interest margin financial
provision for credit losses financial
Federal Open Market Committee regulatory
cost of funds financial
loan-to-deposit ratio financial
nonperforming assets financial
AI-generated analysis. Not financial advice.
Increases in net interest income and certain noninterest income categories, sustained strength in asset quality metrics and capital levels, and acquisition of Eastern Michigan Financial Corporation highlight the year
"We are very pleased to report another year of solid financial performance amid the prolonged and continuing period of uncertain macro-economic conditions," said Ray Reitsma, President and Chief Executive Officer of Mercantile. "Our robust financial results were driven by net interest income expansion, a steady net interest margin, notable increases in treasury management fees, mortgage banking income, and payroll services fees, a reduced provision for credit losses, lower federal income tax expense, solid local deposit growth, and ongoing strength in asset quality and capital measures. We lowered our loan-to-deposit ratio through local deposit generation, and we will remain focused on building our local deposit base to fund anticipated asset growth. We were also pleased to complete the acquisition of Eastern Michigan Financial Corporation on December 31, 2025, and look forward to working with our new colleagues to bring an expanded suite of financial solutions to clients and prospects in East and
Full-year highlights include:
- Acquired Eastern Michigan Financial Corporation ("Eastern"), former holding company for Eastern Michigan Bank, which is headquartered in Croswell,
Michigan , and had$572 million Southeast Michigan - Return on average assets of 1.4 percent and return on average equity of 14.1 percent
- Tangible book value per common share of
$36.78 $3.64 - Net interest income growth of approximately 5 percent
- Steady net interest margin despite changing interest rate environment
- Notable increases in treasury management fees, mortgage banking income, and payroll services fees of approximately 11 percent, 6 percent, and 14 percent, respectively
- Substantial decline in effective tax rate from approximately 19 percent during 2024 to 14 percent during 2025 in part due to the acquisition of transferable energy credits and net benefits from investments in low income housing and historical tax credit structures
- Sustained strength in commercial loan pipeline
- Continuing low levels of nonperforming assets, past due loans, and loan charge-offs
- Noteworthy reduction in loan-to-deposit ratio from approximately 98 percent as of December 31, 2024, to approximately 95 percent as of December 31, 2025, primarily reflecting robust local deposit growth, with a further decline to 91 percent when considering the impact of the acquisition of Eastern
- Solid tangible and regulatory capital positions
- Contributed
$1.1 million
Operating Results
Net revenue, consisting of net interest income and noninterest income, was
The net interest margin was 3.43 percent in the fourth quarter of 2025, up marginally from 3.41 percent in the prior-year fourth quarter. The yield on average earning assets was 5.52 percent during the current-year fourth quarter, a decrease from 5.80 percent during the respective 2024 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. The yield on loans was 6.12 percent during the fourth quarter of 2025, down from 6.38 percent during the fourth quarter of 2024, primarily 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 25 basis points in each of November and December of 2024 and September, October, and December of 2025, during which time average variable-rate commercial loans represented approximately 75 percent of average total commercial loans. Signifying the success of a strategic initiative to lower 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 fourth quarter of 2025 compared to the fourth quarter of 2024. The yield on securities equaled 2.96 percent during the fourth quarter of 2025, up from 2.54 percent during the prior-year fourth quarter.
During the fourth quarter of 2025, the cost of funds was 2.09 percent, down from 2.39 percent during the fourth quarter of 2024, mainly due to lower rates paid on money market accounts and time deposits, reflecting the decreased interest rate environment from November of 2024 through December of 2025 corresponding with the FOMC's lowering of the targeted federal funds rate during the period.
Net revenue was
The net interest margin was 3.47 percent in 2025, down from 3.58 percent in 2024. The yield on average earning assets was 5.69 percent during 2025, a decline from 6.01 percent during 2024. The decreased yield resulted from a lower yield on loans, a change in earning asset mix, and a reduced yield on other interest-earning assets, which more than offset an improved yield on securities reflecting the reinvestment of relatively low-yielding bonds and portfolio growth activities. The yield on loans was 6.26 percent during 2025, down from 6.59 percent during 2024 largely due to reduced interest rates on variable-rate commercial loans stemming from the FOMC lowering 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 and September, October, and December of 2025. Higher-yielding loans accounted for a decreased percentage of earning assets and lower-yielding securities represented an increased percentage of earning assets in 2025 compared to 2024. The decreased yield on other interest-earning assets during 2025 primarily reflected the lower interest rate environment. The yield on securities equaled 2.86 percent during 2025, up from 2.29 percent during 2024.
The cost of funds was 2.22 percent during 2025, down from 2.43 percent during 2024, mainly due to decreased rates paid on money market accounts and time deposits, reflecting the reduced interest rate environment that began in September of 2024 in conjunction with the FOMC's lowering of the targeted federal funds rate.
Mercantile recorded a negative provision for credit losses of
Noninterest income totaled
Noninterest expense totaled
Federal income tax expense was
Mr. Reitsma commented, "Growth in earning assets and a reduction in the cost of funds provided for a notable increase in net interest income during 2025 compared to 2024. Reflecting our strategy to be interest rate agnostic, the net interest margin was stable throughout the year despite a changing interest rate environment. We are pleased with the increases in net interest income, treasury management fees, mortgage banking income, and payroll services fees, along with the decline in federal income tax expense, during 2025 compared to 2024. We remain committed to expanding the balance sheet in a cost-efficient manner while continuing to provide our clients with exceptional service and a wide array of market-leading products and services to meet their needs."
Balance Sheet
As of December 31, 2025, total assets were
During 2025, other consumer loans were up
As of December 31, 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 together represented approximately 55 percent of total commercial loans as of December 31, 2025, a level that has remained relatively consistent with prior periods and in line with our expectations.
Total deposits equaled
Mr. Reitsma noted, "During 2025, the impact of strong commercial loan originations on total loan growth was substantially offset by elevated levels of line paydowns and payoffs during the year. Our current loan pipeline is solid, which coupled with ongoing discussions with existing and potential borrowers, should provide us with ample opportunities to originate commercial loans in future periods. We are pleased with the increase in local deposits and related decrease in our loan-to-deposit ratio during 2025 and intend on continuing our efforts to fund loan originations and investment purchases through local deposit growth."
Asset Quality
Nonperforming assets totaled
The increase in nonperforming assets during 2025 mainly reflected the weakening of a commercial construction loan, which necessitated specific reserve allocations totaling
Mr. Reitsma remarked, "Our asset quality metrics remained strong during 2025, reflecting our unwavering commitment to underwriting all of our loan types in a sound and disciplined manner and our customers' demonstrated abilities to operate effectively during the protracted and ongoing period of uncertain macro-economic conditions. Nonperforming assets, past due loans, and loan charge-offs remain at low levels. We believe our robust loan administration practices, which include a thorough loan review program, will allow us to identify deteriorating commercial loan relationships and detect any emerging systemic or sector-specific credit problems in a timely manner and limit the impact of such on our overall financial condition."
Capital Position
Shareholders' equity totaled
Mercantile reported 17,181,110 total shares outstanding as of December 31, 2025.
Mr. Reitsma concluded, "Our Board of Directors' declaration of an increased first quarter 2026 regular cash dividend demonstrates our commitment to building shareholder value through meaningful cash returns while providing sufficient support for asset expansion objectives. We believe our strong operating results and sustained strength in asset quality and capital measures, coupled with the attainment of solid financial results in future periods as expected, should allow us to effectively address any issues arising from shifting economic and operating conditions and continue our regular cash dividend program. Our community banking philosophy, including our steadfast focus on developing mutually beneficial relationships, has been instrumental in our ability to retain existing customers and acquire new clients, and we believe these inherent traits will provide us with ample opportunities to originate loans and grow local deposits in upcoming periods. We are excited about our acquisition of Eastern Michigan Financial Corporation, which has already assisted us in meeting certain important strategic goals, such as lowering our loan-to-deposit ratio and increasing our on-balance sheet liquidity."
Investor Presentation
Mercantile has prepared presentation materials that management intends to use during its previously announced fourth quarter 2025 conference call on Tuesday, January 20, 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
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 and Eastern 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 | ||||||
Fourth Quarter 2025 Results | ||||||
MERCANTILE BANK CORPORATION | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(Unaudited) | ||||||
DECEMBER 31, | DECEMBER 31, | DECEMBER 31, | ||||
2025 | 2024 | 2023 | ||||
ASSETS | ||||||
Cash and due from banks | $ | 54,755,000 | $ | 56,991,000 | $ | 70,408,000 |
Interest-earning deposits | 418,569,000 | 336,019,000 | 60,125,000 | |||
Total cash and cash equivalents | 473,324,000 | 393,010,000 | 130,533,000 | |||
Securities available for sale | 1,102,230,000 | 730,352,000 | 617,092,000 | |||
Mortgage loans held for sale | 17,160,000 | 15,824,000 | 18,607,000 | |||
Loans | 4,821,888,000 | 4,600,781,000 | 4,303,758,000 | |||
Allowance for credit losses | (58,191,000) | (54,454,000) | (49,914,000) | |||
Loans, net | 4,763,697,000 | 4,546,327,000 | 4,253,844,000 | |||
Premises and equipment, net | 62,468,000 | 53,427,000 | 50,928,000 | |||
Bank owned life insurance | 105,342,000 | 93,839,000 | 85,668,000 | |||
Goodwill | 72,656,000 | 49,473,000 | 49,473,000 | |||
Core deposit intangible asset | 20,388,000 | 0 | 0 | |||
Other assets | 217,954,000 | 169,909,000 | 147,079,000 | |||
Total assets | $ | 6,835,219,000 | $ | 6,052,161,000 | $ | 5,353,224,000 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Deposits: | ||||||
Noninterest-bearing | $ | 1,339,666,000 | $ | 1,264,523,000 | $ | 1,247,640,000 |
Interest-bearing | 3,944,786,000 | 3,433,843,000 | 2,653,278,000 | |||
Total deposits | 5,284,452,000 | 4,698,366,000 | 3,900,918,000 | |||
Securities sold under agreements to repurchase | 232,291,000 | 121,521,000 | 229,734,000 | |||
Federal Home Loan Bank advances | 326,221,000 | 387,083,000 | 467,910,000 | |||
Subordinated debentures | 51,015,000 | 50,330,000 | 49,644,000 | |||
Subordinated notes | 89,657,000 | 89,314,000 | 88,971,000 | |||
Term note | 30,000,000 | 0 | 0 | |||
Accrued interest and other liabilities | 96,699,000 | 121,021,000 | 93,902,000 | |||
Total liabilities | 6,110,335,000 | 5,467,635,000 | 4,831,079,000 | |||
SHAREHOLDERS' EQUITY | ||||||
Common stock | 349,431,000 | 299,705,000 | 295,106,000 | |||
Retained earnings | 399,448,000 | 334,646,000 | 277,526,000 | |||
Accumulated other comprehensive income/(loss) | (23,995,000) | (49,825,000) | (50,487,000) | |||
Total shareholders' equity | 724,884,000 | 584,526,000 | 522,145,000 | |||
Total liabilities and shareholders' equity | $ | 6,835,219,000 | $ | 6,052,161,000 | $ | 5,353,224,000 |
Mercantile Bank Corporation | |||||||||||
Fourth Quarter 2025 Results | |||||||||||
MERCANTILE BANK CORPORATION | |||||||||||
CONSOLIDATED REPORTS OF INCOME | |||||||||||
(Unaudited) | |||||||||||
THREE MONTHS ENDED | THREE MONTHS ENDED | TWELVE MONTHS ENDED | TWELVE MONTHS ENDED | ||||||||
December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | ||||||||
INTEREST INCOME | |||||||||||
Loans, including fees | $ | 71,353,000 | $ | 73,415,000 | $ | 291,355,000 | $ | 291,921,000 | |||
Investment securities | 6,271,000 | 4,316,000 | 22,499,000 | 14,040,000 | |||||||
Interest-earning assets | 4,630,000 | 4,756,000 | 16,340,000 | 15,541,000 | |||||||
Total interest income | 82,254,000 | 82,487,000 | 330,194,000 | 321,502,000 | |||||||
INTEREST EXPENSE | |||||||||||
Deposits | 24,775,000 | 26,874,000 | 102,510,000 | 101,395,000 | |||||||
Short-term borrowings | 1,808,000 | 2,086,000 | 7,464,000 | 7,717,000 | |||||||
Federal Home Loan Bank advances | 2,715,000 | 3,150,000 | 11,404,000 | 13,018,000 | |||||||
Other borrowed money | 1,941,000 | 2,016,000 | 7,772,000 | 8,286,000 | |||||||
Total interest expense | 31,239,000 | 34,126,000 | 129,150,000 | 130,416,000 | |||||||
Net interest income | 51,015,000 | 48,361,000 | 201,044,000 | 191,086,000 | |||||||
Provision for credit losses | (700,000) | 1,500,000 | 3,200,000 | 7,400,000 | |||||||
Net interest income after | |||||||||||
provision for credit losses | 51,715,000 | 46,861,000 | 197,844,000 | 183,686,000 | |||||||
NONINTEREST INCOME | |||||||||||
Service charges on accounts | 2,263,000 | 1,866,000 | 8,134,000 | 6,842,000 | |||||||
Mortgage banking income | 3,334,000 | 3,611,000 | 13,021,000 | 12,301,000 | |||||||
Credit and debit card income | 2,285,000 | 2,177,000 | 9,207,000 | 8,821,000 | |||||||
Interest rate swap income | 270,000 | 717,000 | 1,957,000 | 3,210,000 | |||||||
Payroll services | 825,000 | 763,000 | 3,473,000 | 3,058,000 | |||||||
Earnings on bank owned life insurance | 1,332,000 | 497,000 | 3,293,000 | 2,555,000 | |||||||
Other income | 747,000 | 541,000 | 2,523,000 | 3,602,000 | |||||||
Total noninterest income | 11,056,000 | 10,172,000 | 41,608,000 | 40,389,000 | |||||||
NONINTEREST EXPENSE | |||||||||||
Salaries and benefits | 21,836,000 | 21,482,000 | 83,198,000 | 77,924,000 | |||||||
Occupancy | 2,115,000 | 1,989,000 | 8,511,000 | 8,643,000 | |||||||
Furniture and equipment | 899,000 | 926,000 | 3,357,000 | 3,716,000 | |||||||
Data processing costs | 3,958,000 | 3,630,000 | 15,273,000 | 13,772,000 | |||||||
Charitable foundation contributions | 761,000 | 1,000,000 | 1,066,000 | 1,708,000 | |||||||
Acquisition costs | 1,187,000 | 0 | 1,815,000 | 0 | |||||||
Other expense | 5,970,000 | 4,779,000 | 22,739,000 | 20,026,000 | |||||||
Total noninterest expense | 36,726,000 | 33,806,000 | 135,959,000 | 125,789,000 | |||||||
Income before federal income | |||||||||||
tax expense | 26,045,000 | 23,227,000 | 103,493,000 | 98,286,000 | |||||||
Federal income tax expense | 3,204,000 | 3,601,000 | 14,740,000 | 18,693,000 | |||||||
Net Income | $ | 22,841,000 | $ | 19,626,000 | $ | 88,753,000 | $ | 79,593,000 | |||
Basic earnings per share | |||||||||||
Diluted earnings per share | |||||||||||
Average basic shares outstanding | 16,263,884 | 16,142,578 | 16,237,974 | 16,130,696 | |||||||
Average diluted shares outstanding | 16,263,884 | 16,142,578 | 16,237,974 | 16,130,696 | |||||||
Mercantile Bank Corporation | ||||||||||||||
Fourth Quarter 2025 Results | ||||||||||||||
MERCANTILE BANK CORPORATION | ||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS | ||||||||||||||
(Unaudited) | ||||||||||||||
Quarterly | Year-To-Date | |||||||||||||
(dollars in thousands except per share data) | 2025 | 2025 | 2025 | 2025 | 2024 | |||||||||
4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | 2025 | 2024 | ||||||||
EARNINGS | ||||||||||||||
Net interest income | $ | 51,015 | 52,002 | 49,479 | 48,548 | 48,361 | 201,044 | 191,086 | ||||||
Provision for credit losses | $ | (700) | 200 | 1,600 | 2,100 | 1,500 | 3,200 | 7,400 | ||||||
Noninterest income | $ | 11,056 | 10,388 | 11,462 | 8,702 | 10,172 | 41,608 | 40,389 | ||||||
Noninterest expense | $ | 36,726 | 34,750 | 33,379 | 31,104 | 33,806 | 135,959 | 125,789 | ||||||
Net income before federal income | ||||||||||||||
tax expense | $ | 26,045 | 27,440 | 25,962 | 24,046 | 23,227 | 103,493 | 98,286 | ||||||
Net income | $ | 22,841 | 23,758 | 22,618 | 19,537 | 19,626 | 88,753 | 79,593 | ||||||
Basic earnings per share | $ | 1.40 | 1.46 | 1.39 | 1.21 | 1.22 | 5.47 | 4.93 | ||||||
Diluted earnings per share | $ | 1.40 | 1.46 | 1.39 | 1.21 | 1.22 | 5.47 | 4.93 | ||||||
Average basic shares outstanding | 16,263,884 | 16,249,267 | 16,239,919 | 16,197,978 | 16,142,578 | 16,237,974 | 16,130,696 | |||||||
Average diluted shares outstanding | 16,263,884 | 16,249,267 | 16,239,919 | 16,197,978 | 16,142,578 | 16,237,974 | 16,130,696 | |||||||
PERFORMANCE RATIOS | ||||||||||||||
Return on average assets | 1.44 % | 1.50 % | 1.50 % | 1.32 % | 1.30 % | 1.44 % | 1.40 % | |||||||
Return on average equity | 13.50 % | 14.72 % | 14.72 % | 13.34 % | 13.36 % | 14.08 % | 14.35 % | |||||||
Net interest margin (fully tax-equivalent) | 3.43 % | 3.49 % | 3.48 % | 3.47 % | 3.41 % | 3.47 % | 3.58 % | |||||||
Efficiency ratio | 59.17 % | 55.70 % | 54.77 % | 54.33 % | 57.76 % | 56.03 % | 54.34 % | |||||||
Full-time equivalent employees | 770 | 683 | 692 | 662 | 668 | 770 | 668 | |||||||
YIELD ON ASSETS / COST OF FUNDS | ||||||||||||||
Yield on loans | 6.12 % | 6.35 % | 6.29 % | 6.28 % | 6.38 % | 6.26 % | 6.59 % | |||||||
Yield on securities | 2.96 % | 2.90 % | 2.82 % | 2.73 % | 2.54 % | 2.86 % | 2.29 % | |||||||
Yield on other interest-earning assets | 4.25 % | 4.63 % | 4.91 % | 4.80 % | 4.98 % | 4.66 % | 5.61 % | |||||||
Yield on total earning assets | 5.52 % | 5.74 % | 5.75 % | 5.73 % | 5.80 % | 5.69 % | 6.01 % | |||||||
Yield on total assets | 5.20 % | 5.41 % | 5.44 % | 5.43 % | 5.50 % | 5.37 % | 5.69 % | |||||||
Cost of deposits | 2.04 % | 2.20 % | 2.24 % | 2.23 % | 2.36 % | 2.17 % | 2.40 % | |||||||
Cost of borrowed funds | 3.56 % | 3.61 % | 3.61 % | 3.62 % | 3.73 % | 3.60 % | 3.65 % | |||||||
Cost of interest-bearing liabilities | 2.87 % | 3.06 % | 3.09 % | 3.08 % | 3.30 % | 3.03 % | 3.38 % | |||||||
Cost of funds (total earning assets) | 2.09 % | 2.25 % | 2.27 % | 2.26 % | 2.39 % | 2.22 % | 2.43 % | |||||||
Cost of funds (total assets) | 1.97 % | 2.12 % | 2.15 % | 2.14 % | 2.27 % | 2.09 % | 2.30 % | |||||||
MORTGAGE BANKING ACTIVITY | ||||||||||||||
Total mortgage loans originated | $ | 141,451 | 136,840 | 141,921 | 100,396 | 121,010 | 520,608 | 484,612 | ||||||
Purchase mortgage loans originated | $ | 85,973 | 107,993 | 111,247 | 81,494 | 82,212 | 386,707 | 366,566 | ||||||
Refinance mortgage loans originated | $ | 55,478 | 28,847 | 30,674 | 18,902 | 38,798 | 133,901 | 118,046 | ||||||
Mortgage loans originated intent to sell | $ | 116,886 | 111,334 | 112,323 | 80,453 | 100,628 | 420,996 | 380,076 | ||||||
Income on sale of mortgage loans | $ | 3,376 | 3,482 | 3,219 | 2,455 | 3,768 | 12,532 | 11,695 | ||||||
CAPITAL | ||||||||||||||
Tangible equity to tangible assets | 9.37 % | 9.72 % | 9.49 % | 9.17 % | 8.91 % | 9.37 % | 8.91 % | |||||||
Tier 1 leverage capital ratio | 11.30 % | 10.90 % | 10.93 % | 10.75 % | 10.60 % | 11.30 % | 10.60 % | |||||||
Common equity risk-based capital ratio | 11.00 % | 11.33 % | 10.90 % | 10.90 % | 10.66 % | 11.00 % | 10.66 % | |||||||
Tier 1 risk-based capital ratio | 11.82 % | 12.20 % | 11.75 % | 11.78 % | 11.54 % | 11.82 % | 11.54 % | |||||||
Total risk-based capital ratio | 14.34 % | 14.87 % | 14.37 % | 14.44 % | 14.17 % | 14.34 % | 14.17 % | |||||||
Tier 1 capital | $ | 704,776 | 685,440 | 666,068 | 647,795 | 633,134 | 704,776 | 633,134 | ||||||
Tier 1 plus tier 2 capital | $ | 854,876 | 835,263 | 814,796 | 794,143 | 777,857 | 854,876 | 777,857 | ||||||
Total risk-weighted assets | $ | 5,961,281 | 5,617,005 | 5,670,571 | 5,499,046 | 5,487,886 | 5,961,281 | 5,487,886 | ||||||
Book value per common share | $ | 42.19 | 40.46 | 38.87 | 37.47 | 36.20 | 42.19 | 36.20 | ||||||
Tangible book value per common share | $ | 36.78 | 37.41 | 35.82 | 34.42 | 33.14 | 36.78 | 33.14 | ||||||
Cash dividend per common share | $ | 0.38 | 0.38 | 0.37 | 0.37 | 0.36 | 1.50 | 1.42 | ||||||
ASSET QUALITY | ||||||||||||||
Gross loan charge-offs | $ | 2,842 | 172 | 38 | 63 | 3,787 | 3,115 | 3,838 | ||||||
Recoveries | $ | 206 | 726 | 147 | 175 | 150 | 1,254 | 977 | ||||||
Net loan charge-offs (recoveries) | $ | 2,636 | (554) | (109) | (112) | 3,637 | 1,861 | 2,861 | ||||||
Net loan charge-offs to average loans | 0.23 % | (0.05 %) | (0.01 %) | (0.01 %) | 0.31 % | 0.04 % | 0.60 % | |||||||
Allowance for credit losses | $ | 58,191 | 59,129 | 58,375 | 56,666 | 54,454 | 58,191 | 54,454 | ||||||
Allowance to loans | 1.21 % | 1.28 % | 1.24 % | 1.22 % | 1.18 % | 1.21 % | 1.18 % | |||||||
Nonperforming loans | $ | 7,870 | 9,844 | 9,743 | 5,361 | 5,743 | 7,870 | 5,743 | ||||||
Other real estate/repossessed assets | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Nonperforming loans to total loans | 0.16 % | 0.21 % | 0.21 % | 0.12 % | 0.12 % | 0.16 % | 0.12 % | |||||||
Nonperforming assets to total assets | 0.12 % | 0.16 % | 0.16 % | 0.09 % | 0.09 % | 0.12 % | 0.09 % | |||||||
NONPERFORMING ASSETS - COMPOSITION | ||||||||||||||
Commercial: | ||||||||||||||
Commercial & industrial | $ | 1,393 | 1,509 | 1,727 | 2,257 | 2,726 | 1,393 | 2,726 | ||||||
Land development & construction | $ | 201 | 0 | 0 | 0 | 0 | 201 | 0 | ||||||
Owner occupied comm'l R/E | $ | 517 | 0 | 0 | 41 | 42 | 517 | 42 | ||||||
Non-owner occupied comm'l R/E | $ | 2,732 | 5,532 | 5,532 | 0 | 0 | 2,732 | 0 | ||||||
Multi-family & residential rental | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Total commercial | $ | 4,843 | 7,041 | 7,259 | 2,298 | 2,768 | 4,843 | 2,768 | ||||||
Retail: | ||||||||||||||
1-4 family mortgages | $ | 2,971 | 2,767 | 2,484 | 3,063 | 2,975 | 2,971 | 2,975 | ||||||
Other consumer | $ | 56 | 36 | 0 | 0 | 0 | 56 | 0 | ||||||
Total retail | $ | 3,027 | 2,803 | 2,484 | 3,063 | 2,975 | 3,027 | 2,975 | ||||||
Total nonperforming assets | $ | 7,870 | 9,844 | 9,743 | 5,361 | 5,743 | 7,870 | 5,743 | ||||||
NONPERFORMING ASSETS - RECON | ||||||||||||||
Beginning balance | $ | 9,844 | 9,743 | 5,361 | 5,743 | 9,877 | 5,743 | 3,615 | ||||||
Additions | $ | 1,299 | 426 | 5,792 | 423 | 224 | 7,940 | 8,502 | ||||||
Return to performing status | $ | 0 | (27) | 0 | 0 | (102) | (27) | (102) | ||||||
Principal payments | $ | (466) | (222) | (1,385) | (744) | (515) | (2,817) | (2,331) | ||||||
Sale proceeds | $ | 0 | 0 | 0 | 0 | 0 | 0 | (200) | ||||||
Loan charge-offs | $ | (2,807) | (76) | (25) | (61) | (3,741) | (2,969) | (3,741) | ||||||
Valuation write-downs | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Ending balance | $ | 7,870 | 9,844 | 9,743 | 5,361 | 5,743 | 7,870 | 5,743 | ||||||
LOAN PORTFOLIO COMPOSITION | ||||||||||||||
Commercial: | ||||||||||||||
Commercial & industrial | $ | 1,374,522 | 1,337,729 | 1,375,368 | 1,314,383 | 1,287,308 | 1,374,522 | 1,287,308 | ||||||
Land development & construction | $ | 117,373 | 70,806 | 67,520 | 68,790 | 66,936 | 117,373 | 66,936 | ||||||
Owner occupied comm'l R/E | $ | 778,869 | 729,451 | 725,106 | 705,645 | 748,837 | 778,869 | 748,837 | ||||||
Non-owner occupied comm'l R/E | $ | 1,110,674 | 1,091,210 | 1,134,012 | 1,183,728 | 1,128,404 | 1,110,674 | 1,128,404 | ||||||
Multi-family & residential rental | $ | 537,224 | 521,111 | 519,152 | 479,045 | 475,819 | 537,224 | 475,819 | ||||||
Total commercial | $ | 3,918,662 | 3,750,307 | 3,821,158 | 3,751,591 | 3,707,304 | 3,918,662 | 3,707,304 | ||||||
Retail: | ||||||||||||||
1-4 family mortgages | $ | 790,857 | 780,917 | 799,426 | 817,212 | 827,597 | 790,857 | 827,597 | ||||||
Other consumer | $ | 112,369 | 83,936 | 77,435 | 67,746 | 65,880 | 112,369 | 65,880 | ||||||
Total retail | $ | 903,226 | 864,853 | 876,861 | 884,958 | 893,477 | 903,226 | 893,477 | ||||||
Total loans | $ | 4,821,888 | 4,615,160 | 4,698,019 | 4,636,549 | 4,600,781 | 4,821,888 | 4,600,781 | ||||||
END OF PERIOD BALANCES | ||||||||||||||
Loans | $ | 4,821,888 | 4,615,160 | 4,698,019 | 4,636,549 | 4,600,781 | 4,821,888 | 4,600,781 | ||||||
Securities | $ | 1,102,230 | 855,138 | 826,415 | 787,583 | 730,352 | 1,102,230 | 730,352 | ||||||
Other interest-earning assets | $ | 458,548 | 457,373 | 246,254 | 351,846 | 373,357 | 458,548 | 373,357 | ||||||
Total earning assets (before allowance) | $ | 6,382,666 | 5,927,671 | 5,770,688 | 5,775,978 | 5,704,490 | 6,382,666 | 5,704,490 | ||||||
Total assets | $ | 6,835,219 | 6,308,487 | 6,180,988 | 6,141,200 | 6,052,161 | 6,835,219 | 6,052,161 | ||||||
Noninterest-bearing deposits | $ | 1,339,666 | 1,182,775 | 1,180,801 | 1,173,499 | 1,264,523 | 1,339,666 | 1,264,523 | ||||||
Interest-bearing deposits | $ | 3,944,786 | 3,629,038 | 3,529,671 | 3,508,286 | 3,433,843 | 3,944,786 | 3,433,843 | ||||||
Total deposits | $ | 5,284,452 | 4,811,813 | 4,710,472 | 4,681,785 | 4,698,366 | 5,284,452 | 4,698,366 | ||||||
Total borrowed funds | $ | 730,778 | 739,688 | 740,685 | 749,711 | 649,528 | 730,778 | 649,528 | ||||||
Total interest-bearing liabilities | $ | 4,675,564 | 4,368,726 | 4,270,356 | 4,257,997 | 4,083,371 | 4,675,564 | 4,083,371 | ||||||
Shareholders' equity | $ | 724,884 | 657,630 | 631,519 | 608,346 | 584,526 | 724,884 | 584,526 | ||||||
AVERAGE BALANCES | ||||||||||||||
Loans | $ | 4,627,544 | 4,668,173 | 4,695,367 | 4,629,098 | 4,565,837 | 4,655,077 | 4,432,671 | ||||||
Securities | $ | 880,619 | 841,853 | 803,264 | 763,095 | 720,632 | 822,584 | 657,901 | ||||||
Other interest-earning assets | $ | 426,758 | 433,055 | 235,965 | 304,325 | 373,375 | 350,589 | 277,247 | ||||||
Total earning assets (before allowance) | $ | 5,934,921 | 5,943,081 | 5,734,596 | 5,696,518 | 5,659,844 | 5,828,250 | 5,367,819 | ||||||
Total assets | $ | 6,296,341 | 6,294,841 | 6,061,819 | 6,018,158 | 5,967,036 | 6,168,640 | 5,667,655 | ||||||
Noninterest-bearing deposits | $ | 1,227,100 | 1,215,918 | 1,152,631 | 1,144,781 | 1,188,561 | 1,185,730 | 1,174,082 | ||||||
Interest-bearing deposits | $ | 3,599,012 | 3,610,600 | 3,463,067 | 3,443,770 | 3,335,477 | 3,529,448 | 3,058,151 | ||||||
Total deposits | $ | 4,826,112 | 4,826,518 | 4,615,698 | 4,588,551 | 4,524,038 | 4,715,178 | 4,232,233 | ||||||
Total borrowed funds | $ | 720,499 | 749,679 | 749,811 | 738,628 | 770,838 | 739,632 | 796,016 | ||||||
Total interest-bearing liabilities | $ | 4,319,511 | 4,360,279 | 4,212,878 | 4,182,398 | 4,106,315 | 4,269,080 | 3,854,167 | ||||||
Shareholders' equity | $ | 671,029 | 640,495 | 616,229 | 594,145 | 582,829 | 630,452 | 554,544 | ||||||
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SOURCE Mercantile Bank Corporation
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