Mercantile Bank Reports Q4 EPS $0.30 vs $0.30 Est
Mercantile Bank Corporation (NASDAQ: MBWM) reported net income attributable to common shares of $30.0 million, or $3.37 per diluted share, for the fourth quarter of 2011, compared with a net loss attributable to common shares of $5.3 million, or ($0.62) per diluted share, for the prior-year period. For the full year 2011, Mercantile reported net income attributable to common shares of $36.1 million, or $4.07 per diluted share, compared with a net loss attributable to common shares of $14.6 million, or ($1.72) per diluted share, for the full year 2010.
Net income attributable to common shares was positively impacted by the reversal of the previously established net deferred tax asset valuation allowance resulting in a federal income tax benefit of $27.4 million during the fourth quarter. Excluding the reversal of this allowance, the fourth quarter net income attributable to common shares would have been $2.6 million, or $0.30 per diluted share, and $8.8 million, or $0.99 per diluted share, for the full year 2011.
2011 was highlighted by:
Return to profitability with lower provision expense and higher net interest margin Further strengthening of regulatory capital ratios; total risk based capital ratio up 25 percent compared to year-end 2010 Reversal of the net deferred tax asset valuation allowance Additional improvement in asset quality; continued decline in nonperforming assets, down 30 percent from year-end 2010 Provision expense down $24.9 million or 78 percent from 2010 Level of loans in the 30- to 89-days delinquent category remains at virtually zero Wholesale funds declined to 31% of total funds from 40% at year-end 2010 Brought dividends on preferred stock and distributions on trust preferred securities current
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