Mercantile Bank Corporation Reports Strong Second Quarter 2018 Results

Mercantile Bank Corporation Reports Strong Second Quarter 2018 Results

Continued strength in core profitability and solid loan growth highlight quarter

PR Newswire

GRAND RAPIDS, Mich., July 17, 2018 /PRNewswire/ -- Mercantile Bank Corporation MBWM ("Mercantile") reported net income of $9.4 million, or $0.57 per diluted share, for the second quarter of 2018, compared with net income of $7.3 million, or $0.45 per diluted share, for the respective prior-year period.  Net income during the first six months of 2018 totaled $20.3 million, or $1.22 per diluted share, compared to $15.0 million, or $0.91 per diluted share, during the first six months of 2017.

The successful collection of certain nonperforming commercial loans increased reported net income during the first six months of 2018 by approximately $1.7 million, or $0.10 per diluted share, while a bank owned life insurance claim during the first quarter of 2017 increased reported net income during the first six months of 2017 by approximately $1.1 million, or $0.06 per diluted share.  Excluding the impacts of these transactions, diluted earnings per share increased $0.27, or 31.8 percent, during the first six months of 2018 compared to the respective 2017 period.

Net income during the second quarter of 2018 and the first six months of 2018 also benefited from a reduction in the corporate federal income tax rate, which was lowered from 35 percent to 21 percent on January 1, 2018, as a result of the enactment of the Tax Cuts and Jobs Act.  Mercantile's effective tax rate was 19.0 percent during both the second quarter and first six months of 2018, down from 30.7 percent during each of the respective prior-year periods.

"We are pleased to report another quarter of sound financial performance, continuing the momentum generated during the first quarter of 2018," said Robert B. Kaminski, Jr., President and Chief Executive Officer of Mercantile.  "Our strong operating performance and balance sheet, sustained strength in commercial and residential mortgage loan originations, and healthy loan pipelines make us confident that the solid results achieved during the first half of the year will continue throughout the remainder of 2018."

Second quarter highlights include:

  • Robust earnings performance and capital position
  • Healthy net interest margin
  • Increased fee income
  • Controlled overhead costs
  • Strong asset quality, as reflected by low levels of nonperforming assets and loans in the 30- to 89-days delinquent category
  • New commercial term loan originations of approximately $142 million
  • Continued strength in commercial loan pipeline

Operating Results

Total revenue, which consists of net interest income and noninterest income, was $33.8 million during the second quarter of 2018, up $2.5 million, or 8.1 percent, from the prior-year second quarter.  Net interest income during the second quarter of 2018 was $29.2 million, up $2.0 million, or 7.5 percent, from the second quarter of 2017, reflecting a higher level of earning assets and an increased net interest margin. 

The net interest margin was 3.92 percent in the second quarter of 2018, down from 4.06 percent in the linked quarter, but up from 3.85 percent in the prior-year second quarter.  The decrease in the net interest margin in the current-year second quarter relative to the first quarter of 2018 primarily resulted from a lower yield on commercial loans, which more than offset an improved earning asset mix.  The collection of interest on certain nonperforming commercial loans that paid in full positively impacted the yield on earning assets during the first quarter of 2018 by approximately 29 basis points, while a higher-than-desired level of interest-earning deposits negatively impacted the yield by approximately 8 basis points.  Excluding the impacts of these factors, the net interest margin equaled approximately 3.85 percent during the first quarter of 2018.  The change in earning asset mix mainly reflected loan growth and a reduction in interest-earning deposit balances.  Higher-yielding average loans represented 86.5 percent of average earning assets during the second quarter of 2018, up from 84.4 percent during the linked quarter, while lower-yielding average interest-earning deposit balances represented 2.1 percent of average earning assets during the current-year second quarter, down from 4.1 percent during the linked quarter.  The cost of funds equaled 0.68 percent during the second quarter of 2018, up from 0.64 percent during the first quarter of 2018 mainly due to increased costs of certain non-time deposit accounts, time deposits, and borrowed funds. 

The increase in the net interest margin during the second quarter of 2018 compared to the prior-year second quarter reflects a higher yield on average earning assets, primarily reflecting an increased yield on commercial loans, which more than offset a higher cost of funds, mainly reflecting increased costs of certain non-time deposit accounts, time deposits, and borrowed funds.  The increased yield on commercial loans primarily reflects the positive impact of higher interest rates on variable-rate commercial loans, stemming from the Federal Open Market Committee raising the targeted federal funds rate by 25 basis points in each of June and December 2017 and March and June 2018.

Net interest income and the net interest margin during the second quarter of 2018 and the prior-year second quarter were affected by purchase accounting accretion and amortization entries associated with the fair value measurements recorded effective June 1, 2014.  Increases in interest income on loans totaling $0.8 million and $1.3 million were recorded during the second quarters of 2018 and 2017, respectively.  Purchased loan accretion amounts vary from period to period as a result of periodic cash flow re-estimations, loan payoffs, and payment performance.  An increase in interest expense on subordinated debentures totaling $0.2 million was recorded during both the current-year second quarter and prior-year second quarter. 

Mercantile recorded a $0.7 million provision for loan losses during the second quarter of 2018 compared to a $0.8 million provision during the respective 2017 period.  The provision expense recorded during the second quarter of 2018 primarily reflects loan growth and increased allocations related to certain environmental factors, while the provision expense recorded during the prior-year second quarter mainly reflects loan growth.

Noninterest income during the second quarter of 2018 was $4.6 million, up $0.5 million, or 12.6 percent, from the $4.1 million recorded during the second quarter of 2017.  The increase in noninterest income in part reflects higher mortgage banking activity income, credit and debit card fees, payroll processing revenue, and service charges on accounts.  The increased mortgage banking activity income mainly reflects the success of ongoing strategic initiatives that were implemented to increase market penetration.  The positive impacts of these initiatives have more than offset the negative impacts of rising residential mortgage loan rates and a shortage of housing inventory in Mercantile's markets. 

Noninterest expense totaled $21.4 million during the second quarter of 2018, up $1.5 million, or 7.7 percent, from the respective 2017 period.  The higher level of expense primarily resulted from increased salary costs, mainly reflecting annual employee merit pay increases, the hiring of additional staff, a larger bonus accrual, and higher stock-based compensation expense.  In addition, all hourly employees received a pay increase effective April 1, 2018.

Mr. Kaminski continued, "We are very pleased with the ongoing strength and relative steadiness of our core net interest margin, depicting our continuing focus on loan pricing discipline and sound asset quality.  The recent interest rate hikes initiated by the Federal Open Market Committee have positively impacted our core net interest margin, and we believe our balance sheet structure positions us to benefit from any further rate increases.  We are also pleased with the growth in various fee income categories stemming from the success of ongoing strategic initiatives.  Although headwinds persist, including rising interest rates and limited housing inventories in our markets, mortgage banking activity income increased in the second quarter as we expected, in large part reflecting a higher level of purchase activity and our efforts to increase market penetration."  

Balance Sheet

As of June 30, 2018, total assets were $3.29 billion, up $1.8 million from December 31, 2017.  Total loans increased $78.3 million, or 3.1 percent, while interest-earning deposits decreased $75.6 million, or 52.1 percent, over the same time period.  Interest-earning deposit balances declined as a result of these funds being used to meet loan funding requirements.  Approximately $142 million in commercial term loans to new and existing borrowers were originated during the second quarter of 2018, as continuing sales and relationship-building efforts resulted in additional lending opportunities.  As of June 30, 2018, unfunded commitments on commercial construction and development loans totaled approximately $116 million, which are expected to be largely funded over the next 12 to 18 months.

Raymond Reitsma, President of Mercantile Bank of Michigan, noted, "We are very pleased with the net loan growth achieved during the second quarter of 2018, reflecting our lending team's ongoing focus on establishing new customer relationships and serving our existing customer base.  New commercial term loan originations were in line with quarterly originations over the past few years.  We remain dedicated to growing the loan portfolio in a disciplined manner, with a continuing emphasis on credit quality and risk-based pricing.  Based on expected new loan fundings, we are confident that the commercial loan portfolio will expand in future periods.  Our residential mortgage loan portfolio grew for the ninth consecutive quarter due to our ongoing strategic initiatives, and we believe we are well-positioned to increase our market presence."

As of June 30, 2018, commercial and industrial loans and owner-occupied commercial real estate ("CRE") loans combined represented approximately 58 percent of total commercial loans, while non-owner occupied CRE loans equaled about 36 percent of total commercial loans. 

Total deposits at June 30, 2018 were $2.53 billion, up $7.4 million and $159 million from December 31, 2017, and June 30, 2017, respectively, while local deposits were up $22.6 million and $165 million during the respective time periods.  New commercial loan relationships and the success of various deposit account initiatives drove the growth in local deposits.  Wholesale funds were $317 million, or approximately 11 percent of total funds, as of June 30, 2018, compared to $323 million and $339 million as of December 31, 2017, and June 30, 2017, respectively.

Asset Quality

Nonperforming assets at June 30, 2018, were $5.8 million, or 0.2 percent of total assets, compared to $9.4 million, or 0.3 percent of total assets, at December 31, 2017, and $7.2 million, or 0.2 percent of total assets, at June 30, 2017.  The decline in nonperforming assets during the first six months of 2018 primarily reflects successful loan collection efforts and sales of bank-owned real estate that were no longer being used or considered for use as bank facilities.  The level of past due loans remains nominal, and loan relationships on the internal watch list generally declined in number and dollar volume during the first six months of 2018.  Net loan recoveries were $0.5 million, or an annualized negative 0.08 percent of average loans, during both the second quarter of 2018 and the linked quarter, compared with net loan charge-offs of $0.7 million, or an annualized 0.12 percent of average loans, during the second quarter of 2017.

Capital Position

Shareholders' equity totaled $375 million as of June 30, 2018, an increase of $9.0 million from year-end 2017.  The Bank's capital position remains above "well-capitalized" with a total risk-based capital ratio of 12.9 percent as of June 30, 2018, compared to 12.6 percent at December 31, 2017.  At June 30, 2018, the Bank had approximately $88 million in excess of the 10.0 percent minimum regulatory threshold required to be considered a "well-capitalized" institution.  Mercantile reported 16,609,336 total shares outstanding at June 30, 2018.

Mr. Kaminski concluded, "Our strong financial performance during the first half of 2018 positions us to meet growth and profitability objectives and increase shareholder value.  The sustained cash dividend program, including the announcement of an increased third quarter dividend earlier today, depicts our commitment to enhancing total shareholder return.  Our value-added approach to banking, along with our wide array of products and services, have allowed us to successfully attract new customers as well as retain existing clients.  We are excited about the opportunities available to us in our markets, and we are confident that our demonstrated robust operating performance during the first six months of 2018 will continue during the remainder of the current year and beyond."

About Mercantile Bank Corporation

Based in Grand Rapids, Michigan, Mercantile Bank Corporation is the bank holding company for Mercantile Bank of Michigan.  Mercantile provides banking services to businesses, individuals and governmental units, and differentiates itself on the basis of service quality and the expertise of its banking staff. Mercantile has assets of approximately $3.3 billion and operates 47 banking offices.  Mercantile Bank Corporation's common stock is listed on the NASDAQ Global Select Market under the symbol "MBWM."

Forward-Looking Statements

This news release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that 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; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulation or actions by bank regulators; changes in tax laws; changes in prices, levies, and assessments; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; changes in the national and local economies; and other factors, including 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.

 

 



MERCANTILE BANK CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)



















JUNE 30,



DECEMBER 31,



JUNE 30,





2018



2017



2017

ASSETS













   Cash and due from banks

$

56,338,000

$

55,127,000

$

52,847,000

   Interest-earning deposits



69,402,000



144,974,000



48,762,000

      Total cash and cash equivalents



125,740,000



200,101,000



101,609,000















   Securities available for sale



331,142,000



335,744,000



322,258,000

   Federal Home Loan Bank stock



11,036,000



11,036,000



11,036,000















   Loans



2,636,856,000



2,558,552,000



2,527,281,000

   Allowance for loan losses



(21,167,000)



(19,501,000)



(18,295,000)

      Loans, net



2,615,689,000



2,539,051,000



2,508,986,000















   Premises and equipment, net



47,102,000



46,034,000



45,999,000

   Bank owned life insurance



69,321,000



68,689,000



66,535,000

   Goodwill



49,473,000



49,473,000



49,473,000

   Core deposit intangible



6,514,000



7,600,000



8,712,000

   Other assets



32,504,000



28,976,000



28,728,000















      Total assets

$

3,288,521,000

$

3,286,704,000

$

3,143,336,000





























LIABILITIES AND SHAREHOLDERS' EQUITY













   Deposits:













      Noninterest-bearing

$

884,470,000

$

866,380,000

$

800,718,000

      Interest-bearing



1,645,341,000



1,655,985,000



1,570,003,000

         Total deposits



2,529,811,000



2,522,365,000



2,370,721,000















   Securities sold under agreements to repurchase



94,573,000



118,748,000



110,920,000

   Federal Home Loan Bank advances



230,000,000



220,000,000



245,000,000

   Subordinated debentures



45,858,000



45,517,000



45,176,000

   Accrued interest and other liabilities



13,360,000



14,204,000



14,020,000

         Total liabilities



2,913,602,000



2,920,834,000



2,785,837,000















SHAREHOLDERS' EQUITY













   Common stock



311,720,000



309,772,000



308,343,000

   Retained earnings



74,084,000



61,001,000



50,012,000

   Accumulated other comprehensive income/(loss)



(10,885,000)



(4,903,000)



(856,000)

      Total shareholders' equity



374,919,000



365,870,000



357,499,000















      Total liabilities and shareholders' equity

$

3,288,521,000

$

3,286,704,000

$

3,143,336,000

 

 



MERCANTILE BANK CORPORATION

CONSOLIDATED REPORTS OF INCOME

(Unaudited)































THREE MONTHS ENDED



THREE MONTHS ENDED

SIX MONTHS ENDED

SIX MONTHS ENDED



June 30, 2018



June 30, 2017

June 30, 2018

June 30, 2017

INTEREST INCOME



























   Loans, including fees

$

31,855,000





$

28,927,000



$

64,170,000



$

55,660,000



   Investment securities



2,177,000







1,860,000





4,373,000





3,688,000



   Other interest-earning assets



287,000







116,000





757,000





259,000



      Total interest income



34,319,000







30,903,000





69,300,000





59,607,000































INTEREST EXPENSE



























   Deposits



3,262,000







2,023,000





6,347,000





3,891,000



   Short-term borrowings



61,000







46,000





118,000





97,000



   Federal Home Loan Bank advances



988,000







1,002,000





1,933,000





1,657,000



   Other borrowed money



783,000







639,000





1,478,000





1,260,000



      Total interest expense



5,094,000







3,710,000





9,876,000





6,905,000































      Net interest income



29,225,000







27,193,000





59,424,000





52,702,000































Provision for loan losses



700,000







750,000





700,000





1,350,000































      Net interest income after



























         provision for loan losses



28,525,000







26,443,000





58,724,000





51,352,000































NONINTEREST INCOME



























   Service charges on accounts



1,079,000







1,054,000





2,132,000





2,072,000



   Credit and debit card income



1,334,000







1,176,000





2,577,000





2,282,000



   Mortgage banking income



995,000







783,000





1,879,000





1,906,000



   Earnings on bank owned life insurance



321,000







328,000





652,000





2,066,000



   Other income



821,000







701,000





1,691,000





1,567,000



      Total noninterest income



4,550,000







4,042,000





8,931,000





9,893,000































NONINTEREST EXPENSE



























   Salaries and benefits



12,757,000







10,888,000





25,094,000





22,160,000



   Occupancy



1,629,000







1,554,000





3,401,000





3,108,000



   Furniture and equipment



582,000







546,000





1,130,000





1,081,000



   Data processing costs



2,137,000







2,072,000





4,265,000





4,083,000



   Other expense



4,309,000







4,822,000





8,671,000





9,226,000



      Total noninterest expense



21,414,000







19,882,000





42,561,000





39,658,000































      Income before federal income



























         tax expense



11,661,000







10,603,000





25,094,000





21,587,000































Federal income tax expense



2,215,000







3,260,000





4,767,000





6,629,000































      Net Income

$

9,446,000





$

7,343,000



$

20,327,000



$

14,958,000































   Basic earnings per share



$0.57







$0.45





$1.22





$0.91



   Diluted earnings per share



$0.57







$0.45





$1.22





$0.91































   Average basic shares outstanding



16,601,400







16,471,060





16,598,274





16,452,954



   Average diluted shares outstanding



16,610,819







16,485,356





16,607,593





16,467,384



 

 



MERCANTILE BANK CORPORATION

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)



































Quarterly



Year-To-Date

(dollars in thousands except per share data)

2018



2018



2017



2017



2017













2nd Qtr



1st Qtr



4th Qtr



3rd Qtr



2nd Qtr



2018



2017

EARNINGS





























   Net interest income

$

29,225



30,199



28,402



28,644



27,193



59,424



52,702

   Provision for loan losses

$

700



0



600



1,000



750



700



1,350

   Noninterest income

$

4,550



4,381



4,503



4,605



4,042



8,931



9,893

   Noninterest expense

$

21,414



21,147



19,848



20,210



19,882



42,561



39,658

   Net income before federal income





























      tax expense

$

11,661



13,433



12,457



12,039



10,603



25,094



21,587

   Net income

$

9,446



10,881



7,979



8,337



7,343



20,327



14,958

   Basic earnings per share

$

0.57



0.66



0.48



0.51



0.45



1.22



0.91

   Diluted earnings per share

$

0.57



0.66



0.48



0.51



0.45



1.22



0.91

   Average basic shares outstanding



16,601,400



16,595,115



16,525,625



16,483,492



16,471,060



16,598,274



16,452,954

   Average diluted shares outstanding



16,610,819



16,604,325



16,536,225



16,494,540



16,485,356



16,607,593



16,467,384































PERFORMANCE RATIOS





























   Return on average assets



1.17%



1.36%



0.97%



1.03%



0.96%



1.26%



0.99%

   Return on average equity



10.25%



12.07%



8.70%



9.21%



8.39%



11.15%



8.69%

   Net interest margin (fully tax-equivalent)

3.92%



4.06%



3.76%



3.83%



3.85%



3.99%



3.79%

   Efficiency ratio



63.40%



61.15%



60.32%



60.78%



63.65%



62.26%



63.36%

   Full-time equivalent employees



667



640



641



634



643



667



643































YIELD ON ASSETS / COST OF FUNDS





























   Yield on loans



4.92%



5.14%



4.76%



4.81%



4.69%



5.03%



4.62%

   Yield on securities



2.64%



2.61%



2.60%



2.50%



2.44%



2.62%



2.40%

   Yield on other interest-earning assets



1.80%



1.52%



1.29%



1.28%



0.99%



1.64%



0.97%

   Yield on total earning assets



4.60%



4.70%



4.35%



4.41%



4.37%



4.65%



4.28%

   Yield on total assets



4.27%



4.37%



4.04%



4.10%



4.05%



4.32%



3.97%

   Cost of deposits



0.53%



0.50%



0.45%



0.43%



0.35%



0.51%



0.34%

   Cost of borrowed funds



2.01%



1.83%



1.74%



1.75%



1.69%



1.92%



1.61%

   Cost of interest-bearing liabilities



1.02%



0.94%



0.88%



0.85%



0.77%



0.98%



0.73%

   Cost of funds (total earning assets)



0.68%



0.64%



0.59%



0.58%



0.52%



0.66%



0.49%

   Cost of funds (total assets)



0.63%



0.60%



0.55%



0.54%



0.48%



0.61%



0.46%































PURCHASE ACCOUNTING ADJUSTMENTS



























   Loan portfolio - increase interest income

$

777



2,271



683



1,757



1,336



3,048



2,168

   Trust preferred - increase interest expense

$

171



171



171



171



171



342



342

   Core deposit intangible - increase overhead

$

530



556



556



556



609



1,086



1,245































MORTGAGE BANKING ACTIVITY





























   Total mortgage loans originated

$

62,032



40,937



62,526



61,962



60,371



102,969



98,736

   Purchase mortgage loans originated

$

41,239



25,137



33,958



41,254



39,115



66,376



60,638

   Refinance mortgage loans originated

$

20,793



15,800



28,568



20,708



21,256



36,593



38,098

   Total mortgage loans sold

$

24,114



19,813



26,254



33,858



29,371



43,927



47,834

   Net gain on sale of mortgage loans

$

851



729



1,051



1,131



1,012



1,580



1,744































CAPITAL





























   Tangible equity to tangible assets



9.87%



9.63%



9.56%



9.54%



9.70%



9.87%



9.70%

   Tier 1 leverage capital ratio



11.81%



11.50%



11.24%



11.18%



11.49%



11.81%



11.49%

   Common equity risk-based capital ratio



11.03%



11.04%



10.71%



10.54%



10.65%



11.03%



10.65%

   Tier 1 risk-based capital ratio



12.49%



12.52%



12.19%



12.01%



12.15%



12.49%



12.15%

   Total risk-based capital ratio



13.19%



13.20%



12.85%



12.66%



12.79%



13.19%



12.79%

   Tier 1 capital

$

375,167



367,546



359,047



354,087



347,754



375,167



347,754

   Tier 1 plus tier 2 capital

$

396,334



387,520



378,548



373,280



366,048



396,334



366,048

   Total risk-weighted assets

$

3,003,778



2,935,367



2,946,527



2,949,011



2,861,605



3,003,778



2,861,605

   Book value per common share

$

22.57



22.19



22.05



21.99



21.69



22.57



21.69

   Tangible book value per common share

$

19.20



18.79



18.61



18.49



18.16



19.20



18.16

   Cash dividend per common share

$

0.22



0.22



0.19



0.19



0.18



0.44



0.36































ASSET QUALITY





























   Gross loan charge-offs

$

273



654



920



709



1,150



927



1,606

   Recoveries

$

766



1,127



628



607



419



1,893



590

   Net loan charge-offs (recoveries)

$

(493)



(473)



292



102



731



(966)



1,016

   Net loan charge-offs to average loans



(0.08%)



(0.08%)



0.05%



0.02%



0.12%



(0.08%)



0.08%

   Allowance for loan losses

$

21,167



19,974



19,501



19,193



18,295



21,167



18,295

   Allowance to originated loans



0.89%



0.87%



0.88%



0.88%



0.86%



0.89%



0.86%

   Nonperforming loans

$

4,965



5,742



7,143



8,231



6,450



4,965



6,450

   Other real estate/repossessed assets

$

842



2,384



2,260



2,327



789



842



789

   Nonperforming loans to total loans



0.19%



0.23%



0.28%



0.32%



0.26%



0.19%



0.26%

   Nonperforming assets to total assets



0.18%



0.25%



0.29%



0.32%



0.23%



0.18%



0.23%































NONPERFORMING ASSETS - COMPOSITION

























   Residential real estate:





























      Land development

$

0



0



0



0



0



0



0

      Construction

$

0



0



0



0



0



0



0

      Owner occupied / rental

$

3,650



3,571



3,574



3,648



3,367



3,650



3,367

   Commercial real estate:





























      Land development

$

0



0



35



50



65



0



65

      Construction

$

0



0



0



0



0



0



0

      Owner occupied  

$

1,957



3,913



4,272



4,627



1,313



1,957



1,313

      Non-owner occuped

$

0



0



36



84



400



0



400

   Non-real estate:





























      Commercial assets

$

180



620



1,444



2,126



2,081



180



2,081

      Consumer assets

$

20



22



42



23



13



20



13

   Total nonperforming assets



5,807



8,126



9,403



10,558



7,239



5,807



7,239































NONPERFORMING ASSETS - RECON





























   Beginning balance

$

8,126



9,403



10,558



7,239



7,787



9,403



6,408

   Additions - originated loans

$

300



1,426



402



4,789



1,774



1,726



4,761

   Merger-related activity

$

17



29



0



210



16



46



16

   Return to performing status

$

0



(175)



0



(120)



0



(175)



(113)

   Principal payments

$

(778)



(1,557)



(688)



(1,089)



(1,168)



(2,335)



(2,457)

   Sale proceeds

$

(1,807)



(299)



(101)



(373)



(147)



(2,106)



(203)

   Loan charge-offs

$

(50)



(597)



(754)



(91)



(953)



(647)



(1,088)

   Valuation write-downs

$

(1)



(104)



(14)



(7)



(70)



(105)



(85)

   Ending balance

$

5,807



8,126



9,403



10,558



7,239



5,807



7,239































LOAN PORTFOLIO COMPOSITION





























   Commercial:





























      Commercial & industrial

$

776,995



739,805



753,764



776,562



780,816



776,995



780,816

      Land development & construction

$

37,868



31,437



29,872



28,575



29,027



37,868



29,027

      Owner occupied comm'l R/E

$

533,075



531,152



526,327



485,347



491,633



533,075



491,633

      Non-owner occupied comm'l R/E

$

818,376



794,206



791,685



805,167



783,036



818,376



783,036

      Multi-family & residential rental

$

95,656



96,428



101,918



119,170



114,081



95,656



114,081

         Total commercial

$

2,261,970



2,193,028



2,203,566



2,214,821



2,198,593



2,261,970



2,198,593

   Retail:





























      1-4 family mortgages

$

283,657



264,996



254,560



236,075



220,697



283,657



220,697

      Home equity & other consumer

$

91,229



93,180



100,426



103,376



107,991



91,229



107,991

         Total retail

$

374,886



358,176



354,986



339,451



328,688



374,886



328,688

         Total loans

$

2,636,856



2,551,204



2,558,552



2,554,272



2,527,281



2,636,856



2,527,281































END OF PERIOD BALANCES





























   Loans

$

2,636,856



2,551,204



2,558,552



2,554,272



2,527,281



2,636,856



2,527,281

   Securities

$

342,178



348,024



346,780



341,126



333,294



342,178



333,294

   Other interest-earning assets

$

69,402



163,879



144,974



123,110



48,762



69,402



48,762

   Total earning assets (before allowance)

$

3,048,436



3,063,107



3,050,306



3,018,508



2,909,337



3,048,436



2,909,337

   Total assets

$

3,288,521



3,293,900



3,286,704



3,254,655



3,143,336



3,288,521



3,143,336

   Noninterest-bearing deposits

$

884,470



830,187



866,380



826,038



800,718



884,470



800,718

   Interest-bearing deposits

$

1,645,341



1,709,866



1,655,985



1,663,005



1,570,003



1,645,341



1,570,003

   Total deposits

$

2,529,811



2,540,053



2,522,365



2,489,043



2,370,721



2,529,811



2,370,721

   Total borrowed funds

$

373,642



373,824



387,468



390,868



404,370



373,642



404,370

   Total interest-bearing liabilities

$

2,018,983



2,083,690



2,043,453



2,053,873



1,974,373



2,018,983



1,974,373

   Shareholders' equity

$

374,919



368,340



365,870



362,546



357,499



374,919



357,499































AVERAGE BALANCES





























   Loans

$

2,596,828



2,552,070



2,534,729



2,534,364



2,472,489



2,574,573



2,431,487

   Securities

$

340,990



348,431



346,318



339,125



338,045



344,690



338,787

   Other interest-earning assets

$

63,336



123,633



138,095



116,851



46,250



93,318



53,771

   Total earning assets (before allowance)

$

3,001,154



3,024,134



3,019,142



2,990,340



2,856,784



3,012,581



2,824,045

   Total assets

$

3,232,038



3,249,794



3,248,828



3,220,053



3,081,542



3,240,867



3,049,385

   Noninterest-bearing deposits

$

848,650



805,214



849,751



805,650



785,705



827,052



775,922

   Interest-bearing deposits

$

1,635,755



1,690,135



1,635,727



1,648,235



1,531,399



1,662,795



1,536,709

   Total deposits

$

2,484,405



2,495,349



2,485,478



2,453,885



2,317,104



2,489,847



2,312,631

   Total borrowed funds

$

365,124



376,890



384,168



393,910



400,508



370,975



376,694

   Total interest-bearing liabilities

$

2,000,879



2,067,025



2,019,895



2,042,145



1,931,907



2,033,770



1,913,403

   Shareholders' equity

$

369,787



365,521



363,823



359,131



351,216



367,666



347,302

 

Cision View original content:http://www.prnewswire.com/news-releases/mercantile-bank-corporation-reports-strong-second-quarter-2018-results-300681694.html

SOURCE Mercantile Bank Corporation

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsPress ReleasesBanking/Financial Services
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!