Mercantile Bank Corporation Announces Solid First Quarter 2022 Results

Rhea-AI Summary

Mercantile Bank Corporation (NASDAQ: MBWM) reported a net income of $11.5 million for Q1 2022, down from $14.2 million in Q1 2021. Key highlights included an annualized core commercial loan growth of approximately 11% and increased fee income from various segments, despite a decline in mortgage banking revenue due to market changes. Total revenue was $40.2 million, down from $43.0 million year-over-year. The bank maintained strong asset quality, with low nonperforming assets and a capital position that remains 'well-capitalized'.

Positive

• Annualized net core commercial loan growth of approximately 11%
• Increased fee income in several key categories
• Low levels of nonperforming assets
• Solid capital position with a total risk-based capital ratio of 13.8%

Negative

• Net income decreased from $14.2 million to $11.5 million year-over-year
• Noninterest income fell from $13.5 million to $9.3 million primarily due to decreased mortgage banking income
• Net interest margin declined from 2.77% to 2.57%

Strong core commercial loan growth, ongoing strength in asset quality metrics, and substantial increases in several key fee income categories highlight quarter

GRAND RAPIDS, Mich., April 19, 2022 /PRNewswire/ -- Mercantile Bank Corporation (NASDAQ: MBWM) ("Mercantile") reported net income of $11.5 million, or $0.73 per diluted share, for the first quarter of 2022, compared with net income of $14.2 million, or $0.87 per diluted share, for the respective prior-year period.

"We are pleased with our financial results during the first three months of 2022," said Robert B. Kaminski, Jr., President and Chief Executive Officer of Mercantile.  "The significant increase in core commercial loans, continued strength in asset quality metrics, growth in several key fee income revenue streams, and managed overhead costs represent the main successes during the quarter and have positioned us to achieve sound operating results for the remainder of the year despite the significant drop in mortgage banking revenue stemming from changed market conditions.  Our entire team continues to do an outstanding job of meeting the needs of our customers, including serving as a trusted advisor and assisting them navigate through the latest challenges of the current economic environment."

First quarter highlights include:

• Annualized net core commercial loan growth of approximately 11 percent
• Sustained strength in commercial loan pipeline
• Net interest income growth
• Significant increases in several key fee income categories
• Continued low levels of nonperforming assets and gross loan charge-offs
• Robust capital position
• Augmented regulatory capital levels with issuance of additional subordinated notes

Operating Results

Total revenue, which consists of net interest income and noninterest income, was $40.2 million during the first quarter of 2022, compared to $43.0 million during the prior-year first quarter.  Net interest income during the first three months of 2022 was $30.9 million, up $1.4 million, or 4.6 percent, from $29.5 million during the respective 2021 period due to earning asset growth, which more than offset a lower net interest margin.  Noninterest income totaled $9.3 million during the first quarter of 2022, down from $13.5 million during the first quarter of 2021 mainly due to decreased mortgage banking income, which more than offset increases in all other key fee income categories.

The net interest margin was 2.57 percent in the first quarter of 2022, compared to 2.77 percent in the prior-year first quarter.  The yield on average earning assets declined from 3.26 percent during the first quarter of 2021 to 2.99 percent during the respective 2022 period primarily due to a reduced yield on commercial loans, mainly reflecting a lower level of Paycheck Protection Program loan fee accretion, and a change in earning asset mix, depicting an increase in lower-yielding interest-earning deposits and a decrease in higher-yielding loans as a percentage of earning assets.  A significant volume of excess on-balance sheet liquidity, which initially surfaced in the second quarter of 2020 as a result of the COVID-19 environment and has persisted since that time, negatively impacted the yield on average earning assets by 47 basis points and 44 basis points during the first quarters of 2022 and 2021, respectively, and the net interest margin by 41 basis points and 37 basis points during the respective periods.  The excess funds, consisting almost entirely of low-yielding deposits with the Federal Reserve Bank of Chicago, are mainly a product of local deposit growth and Paycheck Protection Program loan forgiveness activities.  The cost of funds decreased from 0.49 percent during the first quarter of 2021 to 0.42 percent during the current-year first quarter, primarily reflecting lower rates paid on local time deposits stemming from a declining interest rate environment.  A change in funding mix, consisting of an increase in lower-costing non-time deposits as a percentage of total funding sources, also contributed to the lower cost of funds.

Mercantile recorded a credit loss provision expense of $0.1 million during the first quarter of 2022, compared to $0.3 million during the prior-year first quarter.  The provision expense recorded during both periods mainly reflected allocations necessitated by net loan growth; the recording of net loan recoveries and continued strong loan quality metrics during the periods in large part mitigated additional reserves associated with commercial loan growth.  Mercantile's adoption of Accounting Standards Update No. 2016-13, Measurement of Credit Losses on Financial Instruments, on January 1, 2022, resulted in a $0.4 million one-time reduction to the allowance for credit losses.

Noninterest income during the first quarter of 2022 was $9.3 million, compared to $13.5 million during the prior-year first quarter.  The lower level of noninterest income almost exclusively reflected decreased mortgage banking income, which more than offset growth in several key fee income sources, including interest rate swap income, service charges on accounts, credit and debit card income, and payroll processing fees.  Sustained strength in purchase mortgage originations partially mitigated the negative impacts of reduced refinance activity, rising mortgage loan interest rates, a lower mortgage loan sold percentage, and a decreased gain on sale rate on mortgage banking income during the first quarter of 2022.

Noninterest expense totaled $25.7 million during the first quarter of 2022, compared to $25.1 million during the first quarter of 2021.  Overhead costs during the first three months of 2021 included write-downs of former branch facilities totaling $0.5 million.  Excluding these transactions, noninterest expense increased $1.2 million, or 4.8 percent, during the first quarter of 2022 compared to the respective 2021 period.  The higher level of expense primarily resulted from increased compensation costs, mainly depicting annual merit pay increases and lower residential mortgage loan deferred salary costs stemming from decreased production.

Mr. Kaminski commented, "We are very pleased with our growth in several key fee income categories during the first quarter of 2022, in large part reflecting our continuing focus on cross selling our market-leading suite of treasury management products and services.  Although residential mortgage loan production is being negatively impacted by current market conditions and rising interest rates, we have successfully penetrated the purchase market and continue to add talented lenders to the mortgage team in an effort to boost production.  Our earning asset yield was positively impacted by the Federal Open Market Committee raising the targeted federal funds rate late in the first quarter, and we are positioned to benefit from additional rate increases, which appear likely based on current forecasts and Federal Reserve communications.  We have made a concerted effort to effectively manage our overhead costs and are continually reviewing our cost structure to identify opportunities to operate more efficiently." 

Balance Sheet

As of March 31, 2022, total assets were $5.18 billion, down $81.9 million from December 31, 2021.  Total loans increased $102 million during the first quarter of 2022, primarily reflecting net increases in core commercial loans of $82.0 million and residential mortgage loans of $48.0 million, which more than offset a reduction in Paycheck Protection Program loans of $27.9 million.  The increase in core commercial loans during the first three months of 2022 equated to an annualized growth rate of approximately 11 percent.  As of March 31, 2022, unfunded commitments on commercial construction and development loans totaled approximately $184 million, which are expected to be largely funded over the next 12 to 18 months.  Interest-earning deposits decreased $217 million during the first three months of 2022 as excess overnight funds were used to fund loan growth and securities purchases. In addition, a customer's withdrawal of a majority of funds that were deposited in late 2021 contributed to the reduced level of interest-earning deposits.

Ray Reitsma, President of Mercantile Bank of Michigan, noted, "The strong level of core commercial loan growth during the first three months of 2022, slightly more than one-half of which was from an increase in commercial and industrial loans, provides us with additional opportunities to market treasury management products and services.  Importantly, our core commercial loan growth was achieved with new originations more than offsetting approximately $46 million in payoffs related to customers' sales of businesses and assets, with nearly one-third of the dollar volume of payoffs being associated with credit relationships that were experiencing financial difficulties.  Based on the continuing strength of our commercial loan pipeline and potential lending opportunities communicated by our commercial lenders, we believe commercial loan originations will remain robust in future periods.  We are also pleased with the increase in residential mortgage loans during the first three months of 2022, especially when considering current market conditions and the associated impediments that are limiting market opportunities." 

Excluding the impact of Paycheck Protection Program loan originations, commercial and industrial loans and owner-occupied commercial real estate loans together represented approximately 58 percent of total commercial loans as of March 31, 2022, a level that has remained relatively consistent and in line with internal expectations. 

Total deposits at March 31, 2022, were $3.98 billion, down $107 million, or 2.6 percent, from December 31, 2021.  Local deposits declined $99.2 million during the first three months of 2022, while brokered deposits were down $7.7 million.  The reduced level of local deposits primarily reflected the previously mentioned customer withdrawal of funds.  Wholesale funds were $398 million, or approximately 9 percent of total funds, at both March 31, 2022, and December 31, 2021.

Asset Quality

Nonperforming assets totaled $1.6 million, $2.5 million, and $3.2 million at March 31, 2022, December 31, 2021, and March 31, 2021, respectively, with each dollar amount representing less than 0.1 percent of total assets as of the respective dates.  The level of past due loans remains nominal, and loan relationships on the internal watch list declined in both number and dollar volume during the first three months of 2022.  During the first quarter of 2022, loan charge-offs totaled $0.2 million, while recoveries of prior period loan charge-offs equaled $0.3 million, providing for net loan recoveries of $0.1 million, or an annualized 0.01 percent of average total loans.

Mr. Reitsma commented, "Our asset quality metrics remained exceptional during the first quarter of 2022, depicting our ongoing commitment to sound underwriting and our commercial borrowers' effectiveness in meeting the challenges posed by the COVID-19 pandemic and current economic environment, including supply chain disruptions, inflationary pressures, and tight labor market conditions."

Capital Position

Shareholders' equity totaled $436 million as of March 31, 2022, down from $457 million at year-end 2021 mainly due to an increase in the after-tax net unrealized holding loss on securities available for sale resulting from higher market interest rates.  The Bank's capital position remains "well-capitalized" with a total risk-based capital ratio of 13.8 percent as of March 31, 2022, compared to 13.6 percent at December 31, 2021.  At March 31, 2022, the Bank had approximately $157 million in excess of the 10.0 percent minimum regulatory threshold required to be considered a "well-capitalized" institution.  Mercantile reported 15,843,347 total shares outstanding at March 31, 2022.

As of March 31, 2022, Mercantile had the ability to repurchase $6.8 million in common stock shares as part of a $20.0 million common stock repurchase program announced in May of 2021.  No shares were repurchased during the first quarter of 2022.  The actual timing, number and value of shares repurchased under the program will be determined by management in its discretion and will depend on a number of factors, including Mercantile's stock price, capital position, and financial performance, general market and economic conditions, alternative uses of capital, and applicable legal requirements.  The program may be discontinued at any time.

Mr. Kaminski concluded, "Our sustained financial strength has allowed us to continue our regular quarterly cash dividend program and provide shareholders with meaningful cash returns on their investments.  Based on our overall financial condition, including strong capital levels, a healthy commercial loan pipeline, identified client acquisition opportunities, and potential to improve net interest income in rising interest rate environments, we believe we are well positioned to produce solid operating results during the remainder of 2022 and beyond.  We are excited about Mercantile's future and remain focused on being a steady high performer that delivers consistent and profitable growth."

Investor Presentation

Mercantile has prepared presentation materials that management intends to use during its previously announced first quarter 2022 conference call on Tuesday, April 19, 2022, at 10:00 a.m. Eastern Time, and from time to time thereafter in presentations about the Company's operations and performance.  These materials have been furnished to the U.S. Securities and Exchange Commission concurrently with this press release, and are also available on Mercantile's website at www.mercbank.com.

About Mercantile Bank Corporation

Based in Grand Rapids, Michigan, Mercantile Bank Corporation is the bank holding company for Mercantile Bank.  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 $5.2 billion and operates 45 banking offices.  Mercantile Bank Corporation's common stock is listed on the NASDAQ Global Select Market under the symbol "MBWM."  For more information about Mercantile, visit www.mercbank.com, and follow us on Facebook, Instagram and Twitter @MercBank and on LinkedIn @mercantile-bank-of-michigan.

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 changes in interest rates and interest rate relationships; increasing rates of inflation and slower growth rates; significant declines in the value of commercial real estate; market volatility; demand for products and services; the degree of competition by traditional and nontraditional financial services companies; changes in banking regulation or actions by bank regulators; changes in tax laws; 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 method of determining Libor and the phase-out of Libor; changes in the national and local economies, including the ongoing disruption to financial market and other economic activity caused by the COVID-19 pandemic, unstable political and economic environment; 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.

MBWM-ER

FOR FURTHER INFORMATION:
Robert B. Kaminski, Jr.	Charles Christmas
President and CEO	Executive Vice President and CFO
616-726-1502	616-726-1202
rkaminski@mercbank.com	cchristmas@mercbank.com

 

Mercantile Bank Corporation
First Quarter 2022 Results
MERCANTILE BANK CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
		MARCH 31,		DECEMBER 31,		MARCH 31,
		2022		2021		2021
ASSETS
Cash and due from banks	$	71,480,000	$	59,405,000	$	55,489,000
Interest-earning deposits		698,724,000		915,755,000		596,855,000
Total cash and cash equivalents		770,204,000		975,160,000		652,344,000
Securities available for sale		605,661,000		592,743,000		434,257,000
Federal Home Loan Bank stock		17,721,000		18,002,000		18,002,000
Mortgage loans held for sale		14,746,000		16,117,000		40,297,000
Assets held for sale		0		0		13,159,000
Loans		3,555,790,000		3,453,459,000		3,364,370,000
Allowance for credit losses		(35,153,000)		(35,363,000)		(38,695,000)
Loans, net		3,520,637,000		3,418,096,000		3,325,675,000
Premises and equipment, net		56,078,000		57,298,000		55,388,000
Bank owned life insurance		75,508,000		75,242,000		72,395,000
Goodwill		49,473,000		49,473,000		49,473,000
Core deposit intangible, net		1,112,000		1,351,000		2,118,000
Other assets		64,759,000		54,267,000		47,246,000
Total assets	$	5,175,899,000	$	5,257,749,000	$	4,710,354,000
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing	$	1,686,203,000	$	1,677,952,000	$	1,605,471,000
Interest-bearing		2,290,048,000		2,405,241,000		2,039,491,000
Total deposits		3,976,251,000		4,083,193,000		3,644,962,000
Securities sold under agreements to repurchase		204,271,000		197,463,000		141,310,000
Federal Home Loan Bank advances		382,263,000		374,000,000		394,000,000
Subordinated debentures		48,415,000		48,244,000		47,733,000
Subordinated notes		88,428,000		73,646,000		0
Liabilities held for sale		0		0		17,280,000
Accrued interest and other liabilities		39,800,000		24,644,000		23,826,000
Total liabilities		4,739,428,000		4,801,190,000		4,269,111,000
SHAREHOLDERS' EQUITY
Common stock		286,831,000		285,752,000		299,358,000
Retained earnings		181,532,000		174,536,000		143,642,000
Accumulated other comprehensive income/(loss)		(31,892,000)		(3,729,000)		(1,757,000)
Total shareholders' equity		436,471,000		456,559,000		441,243,000
Total liabilities and shareholders' equity	$	5,175,899,000	$	5,257,749,000	$	4,710,354,000

 

 

Mercantile Bank Corporation
First Quarter 2022 Results
MERCANTILE BANK CORPORATION
CONSOLIDATED REPORTS OF INCOME
(Unaudited)
		THREE MONTHS ENDED				THREE MONTHS ENDED
		March 31, 2022				March 31, 2021
INTEREST INCOME
Loans, including fees		$	33,251,000			$	32,985,000
Investment securities			2,265,000				1,632,000
Other interest-earning assets			366,000				168,000
Total interest income			35,882,000				34,785,000
INTEREST EXPENSE
Deposits			1,825,000				2,717,000
Short-term borrowings			50,000				36,000
Federal Home Loan Bank advances			1,864,000				2,027,000
Other borrowed money			1,258,000				472,000
Total interest expense			4,997,000				5,252,000
Net interest income			30,885,000				29,533,000
Provision for credit losses			100,000				300,000
Net interest income after
provision for credit losses			30,785,000				29,233,000
NONINTEREST INCOME
Service charges on accounts			1,416,000				1,155,000
Mortgage banking income			3,281,000				8,800,000
Credit and debit card income			1,881,000				1,678,000
Interest rate swap income			1,351,000				653,000
Payroll services			638,000				557,000
Earnings on bank owned life insurance			287,000				277,000
Other income			423,000				343,000
Total noninterest income			9,277,000				13,463,000
NONINTEREST EXPENSE
Salaries and benefits			15,510,000				15,086,000
Occupancy			2,104,000				2,014,000
Furniture and equipment			934,000				889,000
Data processing costs			2,973,000				2,617,000
Other expense			4,221,000				4,511,000
Total noninterest expense			25,742,000				25,117,000
Income before federal income
tax expense			14,320,000				17,579,000
Federal income tax expense			2,828,000				3,340,000
Net Income		$	11,492,000			$	14,239,000
Basic earnings per share			$0.73				$0.87
Diluted earnings per share			$0.73				$0.87
Average basic shares outstanding			15,840,801				16,283,044
Average diluted shares outstanding			15,841,037				16,283,490

 

Mercantile Bank Corporation
First Quarter 2022 Results
MERCANTILE BANK CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
		Quarterly
(dollars in thousands except per share data)		2022		2021		2021		2021		2021
		1st Qtr		4th Qtr		3rd Qtr		2nd Qtr		1st Qtr
EARNINGS
Net interest income	$	30,885		32,534		31,124		30,871		29,533
Provision for credit losses	$	100		(3,400)		1,900		(3,100)		300
Noninterest income	$	9,277		12,632		15,568		14,556		13,463
Noninterest expense	$	25,742		33,347		26,210		26,192		25,117
Net income before federal income
tax expense	$	14,320		15,219		18,582		22,335		17,579
Net income	$	11,492		11,639		15,051		18,091		14,239
Basic earnings per share	$	0.73		0.74		0.95		1.12		0.87
Diluted earnings per share	$	0.73		0.74		0.95		1.12		0.87
Average basic shares outstanding		15,840,801		15,696,204		15,859,955		16,116,070		16,283,044
Average diluted shares outstanding		15,841,037		15,696,451		15,860,314		16,116,666		16,283,490
PERFORMANCE RATIOS
Return on average assets		0.90%		0.92%		1.23%		1.53%		1.26%
Return on average equity		10.36%		10.15%		13.10%		16.27%		13.02%
Net interest margin (fully tax-equivalent)		2.57%		2.74%		2.71%		2.76%		2.77%
Efficiency ratio		64.10%		73.83%		56.13%		57.66%		58.42%
Full-time equivalent employees		630		627		629		634		621
YIELD ON ASSETS / COST OF FUNDS
Yield on loans		3.87%		4.07%		4.07%		3.99%		4.03%
Yield on securities		1.52%		1.46%		1.46%		1.54%		1.61%
Yield on other interest-earning assets		0.19%		0.15%		0.16%		0.12%		0.11%
Yield on total earning assets		2.99%		3.12%		3.13%		3.20%		3.26%
Yield on total assets		2.82%		2.94%		2.94%		3.02%		3.09%
Cost of deposits		0.19%		0.19%		0.23%		0.25%		0.31%
Cost of borrowed funds		1.82%		1.66%		1.67%		1.73%		1.78%
Cost of interest-bearing liabilities		0.66%		0.63%		0.69%		0.74%		0.82%
Cost of funds (total earning assets)		0.42%		0.38%		0.42%		0.44%		0.49%
Cost of funds (total assets)		0.39%		0.36%		0.39%		0.41%		0.47%
MORTGAGE BANKING ACTIVITY
Total mortgage loans originated	$	168,187		210,228		259,512		237,299		245,200
Purchase mortgage loans originated	$	101,409		124,557		143,635		144,476		81,529
Refinance mortgage loans originated	$	66,778		85,671		115,877		92,823		163,671
Mortgage loans originated to sell	$	75,747		129,546		177,837		140,497		195,655
Net gain on sale of mortgage loans	$	3,204		6,850		6,659		7,690		9,182
CAPITAL
Tangible equity to tangible assets		7.53%		7.79%		8.17%		8.51%		8.36%
Tier 1 leverage capital ratio		9.04%		9.19%		9.33%		9.47%		9.67%
Common equity risk-based capital ratio		10.02%		10.12%		10.34%		10.87%		11.11%
Tier 1 risk-based capital ratio		11.13%		11.26%		11.53%		12.11%		12.41%
Total risk-based capital ratio		14.09%		13.95%		12.47%		13.09%		13.51%
Tier 1 capital	$	464,396		456,133		448,010		445,410		437,567
Tier 1 plus tier 2 capital	$	587,976		565,143		484,594		481,324		476,462
Total risk-weighted assets	$	4,173,590		4,051,253		3,884,999		3,677,180		3,526,161
Book value per common share	$	27.55		28.82		28.78		28.23		27.21
Tangible book value per common share	$	24.36		25.61		25.53		25.03		24.02
Cash dividend per common share	$	0.31		0.30		0.30		0.29		0.29
ASSET QUALITY
Gross loan charge-offs	$	205		179		744		68		53
Recoveries	$	294		1,519		354		386		481
Net loan charge-offs (recoveries)	$	(89)		(1,340)		390		(318)		(428)
Net loan charge-offs (recoveries) to average loans		(0.01%)		(0.16%)		0.05%		(0.04%)		(0.05%)
Allowance for credit losses	$	35,153		35,363		37,423		35,913		38,695
Allowance to loans		0.99%		1.02%		1.13%		1.11%		1.15%
Allowance to loans excluding PPP loans		0.99%		1.04%		1.17%		1.20%		1.33%
Nonperforming loans	$	1,612		2,468		2,766		2,746		2,793
Other real estate/repossessed assets	$	0		0		111		404		374
Nonperforming loans to total loans		0.05%		0.07%		0.08%		0.08%		0.08%
Nonperforming assets to total assets		0.03%		0.05%		0.06%		0.07%		0.07%
NONPERFORMING ASSETS - COMPOSITION
Residential real estate:
Land development	$	31		32		33		34		34
Construction	$	0		0		0		0		0
Owner occupied / rental	$	1,579		1,768		2,063		2,137		2,305
Commercial real estate:
Land development	$	0		0		0		0		0
Construction	$	0		0		0		0		0
Owner occupied	$	0		0		100		363		646
Non-owner occupied	$	0		0		0		0		0
Non-real estate:
Commercial assets	$	0		662		673		606		169
Consumer assets	$	2		6		8		10		13
Total nonperforming assets	$	1,612		2,468		2,877		3,150		3,167
NONPERFORMING ASSETS - RECON
Beginning balance	$	2,468		2,877		3,150		3,167		4,085
Additions	$	93		218		361		522		116
Return to performing status	$	(213)		0		(50)		0		(115)
Principal payments	$	(641)		(377)		(291)		(484)		(559)
Sale proceeds	$	0		(111)		(209)		0		(77)
Loan charge-offs	$	(95)		(139)		0		(55)		(33)
Valuation write-downs	$	0		0		(84)		0		(250)
Ending balance	$	1,612		2,468		2,877		3,150		3,167
LOAN PORTFOLIO COMPOSITION
Commercial:
Commercial & industrial	$	1,153,814		1,137,419		1,074,394		1,103,807		1,284,507
Land development & construction	$	52,693		43,240		38,380		43,111		58,738
Owner occupied comm'l R/E	$	582,732		565,758		551,762		550,504		544,342
Non-owner occupied comm'l R/E	$	1,007,361		1,027,415		998,697		950,993		932,334
Multi-family & residential rental	$	207,962		176,593		179,126		161,894		147,294
Total commercial	$	3,004,562		2,950,425		2,842,359		2,810,309		2,967,215
Retail:
1-4 family mortgages	$	522,556		442,546		411,618		380,292		337,844
Home equity & other consumer	$	28,672		60,488		59,732		58,240		59,311
Total retail	$	551,228		503,034		471,350		438,532		397,155
Total loans	$	3,555,790		3,453,459		3,313,709		3,248,841		3,364,370
END OF PERIOD BALANCES
Loans	$	3,555,790		3,453,459		3,313,709		3,248,841		3,364,370
Securities	$	623,382		610,745		577,566		524,127		452,259
Other interest-earning assets	$	698,724		915,755		741,557		683,638		596,855
Total earning assets (before allowance)	$	4,877,896		4,979,959		4,632,832		4,456,606		4,413,484
Total assets	$	5,175,899		5,257,749		4,964,412		4,757,414		4,713,023
Noninterest-bearing deposits	$	1,686,203		1,677,952		1,647,380		1,620,829		1,605,471
Interest-bearing deposits	$	2,290,048		2,405,241		2,221,611		2,050,442		2,039,491
Total deposits	$	3,976,251		4,083,193		3,868,991		3,671,271		3,644,962
Total borrowed funds	$	724,578		694,588		619,441		613,205		584,672
Total interest-bearing liabilities	$	3,014,626		3,099,829		2,841,052		2,663,647		2,624,163
Shareholders' equity	$	436,471		456,559		452,278		451,888		441,243
AVERAGE BALANCES
Loans	$	3,484,511		3,373,551		3,276,863		3,365,686		3,318,281
Securities	$	613,317		600,852		547,336		483,805		419,514
Other interest-earning assets	$	784,193		738,328		733,801		619,358		591,617
Total earning assets (before allowance)	$	4,882,021		4,712,731		4,558,000		4,468,849		4,329,412
Total assets	$	5,168,562		5,010,786		4,856,611		4,752,858		4,578,887
Noninterest-bearing deposits	$	1,625,453		1,708,052		1,641,158		1,619,976		1,510,334
Interest-bearing deposits	$	2,364,437		2,194,644		2,125,920		2,074,759		2,026,896
Total deposits	$	3,989,890		3,902,696		3,767,078		3,694,735		3,537,230
Total borrowed funds	$	707,478		632,036		614,061		594,199		576,645
Total interest-bearing liabilities	$	3,071,915		2,826,680		2,739,981		2,668,958		2,603,541
Shareholders' equity	$	449,863		455,084		455,902		445,930		443,548

 

View original content:https://www.prnewswire.com/news-releases/mercantile-bank-corporation-announces-solid-first-quarter-2022-results-301527460.html

SOURCE Mercantile Bank Corporation

FAQ

What were Mercantile Bank's Q1 2022 earnings results?

Mercantile Bank reported a net income of $11.5 million, or $0.73 per diluted share for Q1 2022.

How did Mercantile Bank's loan growth perform in Q1 2022?

The bank saw an annualized net core commercial loan growth of approximately 11%.

What was the total revenue for Mercantile Bank in Q1 2022?

Total revenue for Q1 2022 was $40.2 million, down from $43.0 million in Q1 2021.

What were the key challenges faced by Mercantile Bank in Q1 2022?

The bank experienced a decline in mortgage banking revenue due to changing market conditions.

How is the asset quality of Mercantile Bank as of March 31, 2022?

Mercantile Bank reported low levels of nonperforming assets, totaling $1.6 million, representing less than 0.1% of total assets.