Mercantile Bank 1Q Profit Rises 28.8%, Tops Expectations

Mercantile Bank Corp.

reported net income of $8.5 million for the first quarter, up 28.8% from $6.6 million in the preceding year period. Its earnings also jumped to $0.52 a share from $0.39 a share in the year-ago quarter. Street analysts estimated the company to earn $0.40 a share. Mercantile Bank's total revenue grew 15.5% to $33.0 million from $25.9 million in the previous year quarter. This was higher than the Street estimation of $29.05 million. The company's President and Michael Price, said that "Mercantile delivered strong performance in the first quarter, building on the momentum generated during 2015.Our robust financial performance reflects higher net interest income stemming from an improved net interest margin, increased noninterest income, and controlled overhead costs. We are pleased with the level of loan originations during the quarter, and based on our current loan pipeline, we feel confident that solid loan growth can be achieved throughout the remainder of 2016." Price said further that "Based on our strong performance in the first quarter, we believe Mercantile is well positioned to succeed during 2016 and beyond and enhance shareholder value. We continue to have success in developing new customer relationships by delivering a wide range of products and services and focusing on customer service, and our recently implemented fee enhancement and cost reduction initiatives should positively impact future profitability. Our commitment to increasing shareholder return is reflected in our competitive dividend yield and the expansion of our common stock repurchase program." On Monday, shares of the company closed with a loss of 0.36%.