Mercantile Bank Corporation Announces Strong First Quarter 2025 Results
Mercantile Bank (NASDAQ: MBWM) reported Q1 2025 net income of $19.5 million ($1.21 per diluted share), compared to $21.6 million ($1.34 per diluted share) in Q1 2024.
Key financial highlights include:
- Net revenue of $57.2 million, down 1.7% year-over-year
- Net interest income increased 2.5% to $48.6 million
- Noninterest income decreased to $8.7 million from $10.9 million
- Net interest margin was 3.47%, down from 3.74%
The bank maintained strong asset quality with nonperforming assets at less than 0.1% of total assets. Total assets reached $6.14 billion, with total deposits at $4.68 billion. The loan-to-deposit ratio slightly increased to 99% from 98% at year-end 2024. The bank maintains a well-capitalized position with a total risk-based capital ratio of 14.0%.
Mercantile Bank (NASDAQ: MBWM) ha riportato un utile netto nel primo trimestre 2025 di 19,5 milioni di dollari (1,21 dollari per azione diluita), rispetto ai 21,6 milioni di dollari (1,34 dollari per azione diluita) del primo trimestre 2024.
I principali dati finanziari includono:
- Ricavi netti pari a 57,2 milioni di dollari, in calo dell'1,7% su base annua
- Reddito netto da interessi aumentato del 2,5% a 48,6 milioni di dollari
- Reddito non da interessi diminuito a 8,7 milioni di dollari da 10,9 milioni
- Margine di interesse netto al 3,47%, in diminuzione rispetto al 3,74%
La banca ha mantenuto un'elevata qualità degli attivi, con attività in sofferenza inferiori allo 0,1% del totale attivi. Il totale degli attivi ha raggiunto 6,14 miliardi di dollari, con depositi totali pari a 4,68 miliardi. Il rapporto prestiti/depositi è leggermente salito al 99% rispetto al 98% di fine 2024. La banca mantiene una solida posizione patrimoniale con un indice patrimoniale totale basato sul rischio del 14,0%.
Mercantile Bank (NASDAQ: MBWM) reportó un ingreso neto en el primer trimestre de 2025 de 19,5 millones de dólares (1,21 dólares por acción diluida), en comparación con 21,6 millones de dólares (1,34 dólares por acción diluida) en el primer trimestre de 2024.
Los principales indicadores financieros incluyen:
- Ingresos netos de 57,2 millones de dólares, una disminución del 1,7% interanual
- Ingreso neto por intereses aumentó un 2,5% hasta 48,6 millones de dólares
- Ingresos no por intereses disminuyeron a 8,7 millones de dólares desde 10,9 millones
- Margen neto de intereses del 3,47%, inferior al 3,74%
El banco mantuvo una sólida calidad de activos con activos improductivos por debajo del 0,1% del total de activos. Los activos totales alcanzaron los 6,14 mil millones de dólares, con depósitos totales de 4,68 mil millones. La relación préstamos-depósitos aumentó ligeramente al 99% desde el 98% al cierre de 2024. El banco mantiene una posición bien capitalizada con una ratio de capital total basado en riesgos del 14,0%.
Mercantile Bank (NASDAQ: MBWM)는 2025년 1분기 순이익이 1,950만 달러(희석 주당 1.21달러)를 기록했다고 발표했으며, 이는 2024년 1분기의 2,160만 달러(희석 주당 1.34달러)와 비교됩니다.
주요 재무 하이라이트는 다음과 같습니다:
- 순수익 5,720만 달러로 전년 대비 1.7% 감소
- 순이자수익은 4,860만 달러로 2.5% 증가
- 비이자수익은 1,090만 달러에서 870만 달러로 감소
- 순이자마진은 3.47%로 3.74%에서 하락
은행은 총자산 대비 0.1% 미만의 부실자산으로 강력한 자산 건전성을 유지했습니다. 총자산은 61억 4천만 달러에 달했으며, 총 예금은 46억 8천만 달러였습니다. 대출 대비 예금 비율은 2024년 말 98%에서 소폭 상승한 99%를 기록했습니다. 은행은 14.0%의 총 위험기준 자본비율로 안정적인 자본 상태를 유지하고 있습니다.
Mercantile Bank (NASDAQ : MBWM) a déclaré un bénéfice net au premier trimestre 2025 de 19,5 millions de dollars (1,21 dollar par action diluée), contre 21,6 millions de dollars (1,34 dollar par action diluée) au premier trimestre 2024.
Les principaux indicateurs financiers comprennent :
- Revenus nets de 57,2 millions de dollars, en baisse de 1,7 % en glissement annuel
- Revenu net d’intérêts en hausse de 2,5 % à 48,6 millions de dollars
- Revenus hors intérêts en baisse à 8,7 millions de dollars contre 10,9 millions
- Marge nette d’intérêts de 3,47 %, en baisse par rapport à 3,74 %
La banque a maintenu une forte qualité d’actifs avec des actifs non performants représentant moins de 0,1 % du total des actifs. Le total des actifs a atteint 6,14 milliards de dollars, avec des dépôts totaux de 4,68 milliards. Le ratio prêts/dépôts a légèrement augmenté à 99 % contre 98 % à la fin de 2024. La banque conserve une position bien capitalisée avec un ratio de fonds propres total basé sur les risques de 14,0 %.
Mercantile Bank (NASDAQ: MBWM) meldete für das erste Quartal 2025 einen Nettogewinn von 19,5 Millionen US-Dollar (1,21 US-Dollar je verwässerter Aktie), verglichen mit 21,6 Millionen US-Dollar (1,34 US-Dollar je verwässerter Aktie) im ersten Quartal 2024.
Wichtige finanzielle Kennzahlen umfassen:
- Nettoeinnahmen von 57,2 Millionen US-Dollar, ein Rückgang von 1,7 % im Jahresvergleich
- Nettozinsertrag stieg um 2,5 % auf 48,6 Millionen US-Dollar
- Erträge aus Nichtzinsen sanken von 10,9 Millionen auf 8,7 Millionen US-Dollar
- Nettozinsmarge lag bei 3,47 %, gegenüber 3,74 % zuvor
Die Bank hielt eine starke Vermögensqualität mit notleidenden Krediten von weniger als 0,1 % der Gesamtaktiva aufrecht. Die Gesamtaktiva erreichten 6,14 Milliarden US-Dollar, die Gesamteinlagen lagen bei 4,68 Milliarden. Die Kredit-Einlagen-Quote stieg leicht von 98 % Ende 2024 auf 99 %. Die Bank verfügt über eine solide Kapitalausstattung mit einer risikobasierten Gesamtkapitalquote von 14,0 %.
- Net interest income increased 2.5% to $48.6 million
- Strong asset quality with nonperforming assets below 0.1% of total assets
- Well-capitalized position with 14.0% total risk-based capital ratio
- Commercial loan portfolio grew at 4.8% annualized rate in Q1
- Mortgage banking income increased due to higher loan originations
- Net income decreased to $19.5M from $21.6M year-over-year
- EPS declined to $1.21 from $1.34 year-over-year
- Net interest margin decreased to 3.47% from 3.74%
- Noninterest income declined to $8.7M from $10.9M
- Total deposits decreased by $16.6M during Q1 2025
Insights
Mercantile reports 9.7% lower Q1 earnings despite solid loan growth and excellent asset quality, reflecting rate environment challenges.
Mercantile Bank 's Q1 2025 results present a mixed financial picture with net income declining 9.7% year-over-year to
The bank's core revenue engine showed resilience with net interest income growing 2.5% to
Commercial loans expanded at an annualized rate of
The strategic initiative to improve funding structure shows clear progress, with the loan-to-deposit ratio improving from
Noninterest income declined to
The capital position remains robust with a total risk-based capital ratio of
While the headline earnings declined, core banking operations demonstrate effective management through a challenging interest rate transition period.
Growth in net interest income, notable increases in certain noninterest income categories, sustained strength in asset quality metrics, and continuing solid capital position highlight the quarter
"We are pleased to report sustained strength in financial metrics during the first quarter of 2025. We believe these results continue to evidence our ability to effectively manage challenges emanating from ongoing uncertain economic and operating environments," said Ray Reitsma, President and Chief Executive Officer of Mercantile. "The strong operating performance reflected net interest income expansion, a steadying net interest margin, higher levels of treasury management, mortgage banking, and payroll service income, and continuing strength in asset quality metrics. Notably, net growth in various local deposit relationships and newly established deposit relationships substantially offset customary seasonal deposit withdrawals, and we remain committed to lowering our loan-to-deposit ratio through local deposit generation."
First quarter highlights include:
- Net interest income expansion
- Noteworthy increases in treasury management, mortgage banking, and payroll income
- Net growth in various local deposit relationships and new local deposit relationships largely offset customary seasonal deposit withdrawals
- Continuing low levels of nonperforming assets, past due loans, and loan charge-offs
- Strong capital position
Operating Results
Net revenue, consisting of net interest income and noninterest income, was
The net interest margin was 3.47 percent in the first quarter of 2025, down from 3.74 percent in the prior-year first quarter. The yield on average earning assets was 5.74 percent during the current-year first quarter, a decrease from 6.06 percent during the respective 2024 period. The lower yield primarily resulted from a decreased yield on loans and a change in earning asset mix, which more than offset an enhanced yield on securities stemming from reinvestment and portfolio expansion activities in a higher interest rate environment. The yield on loans was 6.31 percent during the first quarter of 2025, down from 6.65 percent during the first quarter of 2024 mainly 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 50 basis points in September of 2024 and 25 basis points in each of November and December of 2024, during which time average variable-rate commercial loans represented approximately 73 percent of average total commercial loans. Signifying the success of a strategic initiative to reduce the loan-to-deposit ratio and increase on-balance sheet liquidity, higher-yielding loans represented a reduced percentage of earning assets and lower-yielding securities and interest-earning deposits accounted for increased percentages of earning assets in the first quarter of 2025 compared to the first quarter of 2024.
During the first quarter of 2025, the cost of funds was 2.27 percent, down from 2.32 percent in the first quarter of 2024 mainly due to lower rates paid on money market accounts, reflecting the decreased interest rate environment that began in September of 2024 in conjunction with the FOMC's lowering of the targeted federal funds rate. A change in funding mix, primarily consisting of a decline in average noninterest-bearing checking accounts and growth in average higher-cost money market accounts and time deposits, negatively impacted the cost of funds during the first three months of 2025. The increases in money market accounts and time deposits reflected new deposit relationships, growth in existing deposit relationships, and deposit migration.
Mercantile recorded provisions for credit losses of
Noninterest income totaled
Noninterest expense totaled
Mr. Reitsma commented, "The notable increase in mortgage banking income during the first quarter of 2025 primarily reflected the ongoing success of planned initiatives to amplify the percentage of loans originated with the intent to sell and maintain solid loan production. We are pleased with the growth in treasury management and payroll service fees, largely reflecting customers' increased use of products and services and our sales team's effectiveness in marketing them to existing and new clients. Although declining as anticipated from the first quarter of 2024 due to a lower yield on average earning assets, our net interest margin has remained relatively steady during the past three quarters. The impact of the lower net interest margin was more than offset by growth in earning assets, providing for an increase in net interest income. We remain committed to expanding the balance sheet in a cost-effective manner and continually examine our operating segments to identify opportunities to function more efficiently while continuing to deliver outstanding service to our customers and provide them with market-leading products and services to meet their needs."
Balance Sheet
As of March 31, 2025, total assets were
As of March 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 combined represented approximately 54 percent of total commercial loans as of March 31, 2025, a level that has remained relatively consistent with prior periods and in line with our expectations.
Total deposits as of March 31, 2025, were
Mr. Reitsma noted, "The commercial loan portfolio grew during the first quarter of 2025 notwithstanding partial paydowns and full payoffs and a decline in commercial lending activities stemming from the ongoing uncertain economic and operating environments. Based on our current pipeline and ongoing discussions with current and prospective borrowers, we believe ample opportunities to originate commercial loans will be available in future periods. Our near-term objective remains to grow our local deposit base in an effort to lower our loan-to-deposit ratio while limiting the use of wholesale funds to fund loan originations and investment purchases."
Asset Quality
Nonperforming assets totaled
Mr. Reitsma remarked, "As evidenced by the sustained strength in asset quality metrics during the first quarter of 2025, including ongoing low levels of nonperforming assets, past due loans, and loan charge-offs, we remain committed to underwriting loans in a proper and disciplined manner. The early detection and reporting of weakening commercial credit relationships and developing sector-specific or systemic credit issues remain top priorities, and we believe our continuing focus on the use of these important credit monitoring tools will limit the impact of such on our overall financial condition. Our residential mortgage loan and consumer loan portfolios continue to perform well, with both portfolios exhibiting low delinquency and charge-off levels."
Capital Position
Shareholders' equity totaled
All of Mercantile Bank's investments are categorized as available-for-sale. As of March 31, 2025, the net unrealized loss on these investments totaled
Mercantile reported 16,235,660 total shares outstanding as of March 31, 2025.
Mr. Reitsma concluded, "Our ongoing financial strength has enabled us to continue our regular cash dividend program and provide shareholders with meaningful cash returns on their investments. We believe our strong capital position, operating results, and asset quality metrics will allow us to effectively address potential issues arising from shifting economic and operating conditions. Our community banking philosophy and passionate focus on meeting customers' needs have been instrumental in retaining existing relationships and securing new relationships, and we believe these inherent traits will be key components of our efforts to reduce our loan-to-deposit ratio through local deposit generation."
Investor Presentation
Mercantile has prepared presentation materials that management intends to use during its previously announced first quarter 2025 conference call on Tuesday, April 22, 2025, 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 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 | ||||||
First Quarter 2025 Results | ||||||
MERCANTILE BANK CORPORATION | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
MARCH 31, | DECEMBER 31, | MARCH 31, | ||||
2025 | 2024 | 2024 | ||||
(Unaudited) | (Audited) | (Unaudited) | ||||
ASSETS | ||||||
Cash and due from banks | $ | 70,320,000 | $ | 56,991,000 | $ | 52,606,000 |
Interest-earning deposits | 315,140,000 | 336,019,000 | 184,625,000 | |||
Total cash and cash equivalents | 385,460,000 | 393,010,000 | 237,231,000 | |||
Securities available for sale | 787,583,000 | 730,352,000 | 609,153,000 | |||
Federal Home Loan Bank stock | 21,513,000 | 21,513,000 | 21,513,000 | |||
Mortgage loans held for sale | 15,192,000 | 15,824,000 | 14,393,000 | |||
Loans | 4,636,549,000 | 4,600,781,000 | 4,322,006,000 | |||
Allowance for credit losses | (56,666,000) | (54,454,000) | (51,638,000) | |||
Loans, net | 4,579,883,000 | 4,546,327,000 | 4,270,368,000 | |||
Premises and equipment, net | 53,693,000 | 53,427,000 | 50,835,000 | |||
Bank owned life insurance | 94,417,000 | 93,839,000 | 85,528,000 | |||
Goodwill | 49,473,000 | 49,473,000 | 49,473,000 | |||
Other assets | 153,986,000 | 148,396,000 | 127,459,000 | |||
Total assets | $ | 6,141,200,000 | $ | 6,052,161,000 | $ | 5,465,953,000 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Deposits: | ||||||
Noninterest-bearing | $ | 1,173,499,000 | $ | 1,264,523,000 | $ | 1,134,995,000 |
Interest-bearing | 3,508,286,000 | 3,433,843,000 | 2,872,815,000 | |||
Total deposits | 4,681,785,000 | 4,698,366,000 | 4,007,810,000 | |||
Securities sold under agreements to repurchase | 242,102,000 | 121,521,000 | 228,618,000 | |||
Federal Home Loan Bank advances | 366,221,000 | 387,083,000 | 447,083,000 | |||
Subordinated debentures | 50,501,000 | 50,330,000 | 49,815,000 | |||
Subordinated notes | 89,400,000 | 89,314,000 | 89,057,000 | |||
Accrued interest and other liabilities | 102,845,000 | 121,021,000 | 106,926,000 | |||
Total liabilities | 5,532,854,000 | 5,467,635,000 | 4,929,309,000 | |||
SHAREHOLDERS' EQUITY | ||||||
Common stock | 300,732,000 | 299,705,000 | 296,065,000 | |||
Retained earnings | 348,281,000 | 334,646,000 | 293,554,000 | |||
Accumulated other comprehensive income/(loss) | (40,667,000) | (49,825,000) | (52,975,000) | |||
Total shareholders' equity | 608,346,000 | 584,526,000 | 536,644,000 | |||
Total liabilities and shareholders' equity | $ | 6,141,200,000 | $ | 6,052,161,000 | $ | 5,465,953,000 |
Mercantile Bank Corporation | ||||||||
First Quarter 2025 Results | ||||||||
MERCANTILE BANK CORPORATION | ||||||||
CONSOLIDATED REPORTS OF INCOME | ||||||||
(Unaudited) | ||||||||
THREE MONTHS ENDED | THREE MONTHS ENDED | |||||||
March 31, 2025 | March 31, 2024 | |||||||
INTEREST INCOME | ||||||||
Loans, including fees | $ | 71,992,000 | $ | 71,270,000 | ||||
Investment securities | 5,411,000 | 3,421,000 | ||||||
Interest-earning deposits | 2,935,000 | 2,033,000 | ||||||
Total interest income | 80,338,000 | 76,724,000 | ||||||
INTEREST EXPENSE | ||||||||
Deposits | 25,192,000 | 22,224,000 | ||||||
Short-term borrowings | 1,763,000 | 1,654,000 | ||||||
Federal Home Loan Bank advances | 2,898,000 | 3,399,000 | ||||||
Other borrowed money | 1,937,000 | 2,086,000 | ||||||
Total interest expense | 31,790,000 | 29,363,000 | ||||||
Net interest income | 48,548,000 | 47,361,000 | ||||||
Provision for credit losses | 2,100,000 | 1,300,000 | ||||||
Net interest income after | ||||||||
provision for credit losses | 46,448,000 | 46,061,000 | ||||||
NONINTEREST INCOME | ||||||||
Service charges on accounts | 1,839,000 | 1,531,000 | ||||||
Mortgage banking income | 2,651,000 | 2,343,000 | ||||||
Credit and debit card income | 2,201,000 | 2,121,000 | ||||||
Interest rate swap income | 80,000 | 1,339,000 | ||||||
Payroll services | 1,040,000 | 896,000 | ||||||
Earnings on bank owned life insurance | 543,000 | 1,172,000 | ||||||
Other income | 348,000 | 1,466,000 | ||||||
Total noninterest income | 8,702,000 | 10,868,000 | ||||||
NONINTEREST EXPENSE | ||||||||
Salaries and benefits | 19,557,000 | 18,237,000 | ||||||
Occupancy | 2,118,000 | 2,289,000 | ||||||
Furniture and equipment | 787,000 | 929,000 | ||||||
Data processing costs | 3,770,000 | 3,289,000 | ||||||
Charitable foundation contributions | 3,000 | 703,000 | ||||||
Other expense | 4,869,000 | 4,497,000 | ||||||
Total noninterest expense | 31,104,000 | 29,944,000 | ||||||
Income before federal income | ||||||||
tax expense | 24,046,000 | 26,985,000 | ||||||
Federal income tax expense | 4,509,000 | 5,423,000 | ||||||
Net Income | $ | 19,537,000 | $ | 21,562,000 | ||||
Basic earnings per share | ||||||||
Diluted earnings per share | ||||||||
Average basic shares outstanding | 16,197,978 | 16,118,858 | ||||||
Average diluted shares outstanding | 16,197,978 | 16,118,858 | ||||||
Mercantile Bank Corporation | ||||||||||
First Quarter 2025 Results | ||||||||||
MERCANTILE BANK CORPORATION | ||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS | ||||||||||
(Unaudited) | ||||||||||
Quarterly | ||||||||||
(dollars in thousands except per share data) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||
1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | ||||||
EARNINGS | ||||||||||
Net interest income | $ | 48,548 | 48,361 | 48,292 | 47,072 | 47,361 | ||||
Provision for credit losses | $ | 2,100 | 1,500 | 1,100 | 3,500 | 1,300 | ||||
Noninterest income | $ | 8,702 | 10,172 | 9,667 | 9,681 | 10,868 | ||||
Noninterest expense | $ | 31,104 | 33,806 | 32,303 | 29,737 | 29,944 | ||||
Net income before federal income | ||||||||||
tax expense | $ | 24,046 | 23,227 | 24,556 | 23,516 | 26,985 | ||||
Net income | $ | 19,537 | 19,626 | 19,618 | 18,786 | 21,562 | ||||
Basic earnings per share | $ | 1.21 | 1.22 | 1.22 | 1.17 | 1.34 | ||||
Diluted earnings per share | $ | 1.21 | 1.22 | 1.22 | 1.17 | 1.34 | ||||
Average basic shares outstanding | 16,197,978 | 16,142,578 | 16,138,320 | 16,122,813 | 16,118,858 | |||||
Average diluted shares outstanding | 16,197,978 | 16,142,578 | 16,138,320 | 16,122,813 | 16,118,858 | |||||
PERFORMANCE RATIOS | ||||||||||
Return on average assets | 1.32 % | 1.30 % | 1.35 % | 1.36 % | 1.61 % | |||||
Return on average equity | 13.34 % | 13.36 % | 13.73 % | 13.93 % | 16.41 % | |||||
Net interest margin (fully tax-equivalent) | 3.47 % | 3.41 % | 3.52 % | 3.63 % | 3.74 % | |||||
Efficiency ratio | 54.33 % | 57.76 % | 55.73 % | 52.40 % | 51.42 % | |||||
Full-time equivalent employees | 662 | 668 | 653 | 670 | 642 | |||||
YIELD ON ASSETS / COST OF FUNDS | ||||||||||
Yield on loans | 6.31 % | 6.41 % | 6.69 % | 6.64 % | 6.65 % | |||||
Yield on securities | 2.79 % | 2.62 % | 2.43 % | 2.30 % | 2.20 % | |||||
Yield on interest-earning deposits | 4.40 % | 4.66 % | 5.37 % | 5.28 % | 5.35 % | |||||
Yield on total earning assets | 5.74 % | 5.81 % | 6.08 % | 6.07 % | 6.06 % | |||||
Yield on total assets | 5.42 % | 5.49 % | 5.73 % | 5.72 % | 5.72 % | |||||
Cost of deposits | 2.23 % | 2.36 % | 2.52 % | 2.42 % | 2.25 % | |||||
Cost of borrowed funds | 3.62 % | 3.73 % | 3.75 % | 3.56 % | 3.51 % | |||||
Cost of interest-bearing liabilities | 3.08 % | 3.30 % | 3.53 % | 3.40 % | 3.27 % | |||||
Cost of funds (total earning assets) | 2.27 % | 2.40 % | 2.56 % | 2.44 % | 2.32 % | |||||
Cost of funds (total assets) | 2.14 % | 2.27 % | 2.41 % | 2.31 % | 2.19 % | |||||
MORTGAGE BANKING ACTIVITY | ||||||||||
Total mortgage loans originated | $ | 100,396 | 121,010 | 160,944 | 122,728 | 79,930 | ||||
Purchase/construction mortgage loans originated | $ | 81,494 | 82,212 | 122,747 | 103,939 | 57,668 | ||||
Refinance mortgage loans originated | $ | 18,902 | 38,798 | 38,197 | 18,789 | 22,262 | ||||
Mortgage loans originated with intent to sell | $ | 80,453 | 100,628 | 128,678 | 91,490 | 59,280 | ||||
Income on sale of mortgage loans | $ | 2,455 | 3,768 | 3,376 | 2,487 | 2,064 | ||||
CAPITAL | ||||||||||
Tangible equity to tangible assets | 9.17 % | 8.91 % | 9.10 % | 9.03 % | 8.99 % | |||||
Tier 1 leverage capital ratio | 10.75 % | 10.60 % | 10.68 % | 10.85 % | 10.88 % | |||||
Common equity risk-based capital ratio | 10.90 % | 10.66 % | 10.53 % | 10.46 % | 10.41 % | |||||
Tier 1 risk-based capital ratio | 11.78 % | 11.54 % | 11.42 % | 11.36 % | 11.33 % | |||||
Total risk-based capital ratio | 14.44 % | 14.17 % | 14.13 % | 14.10 % | 14.05 % | |||||
Tier 1 capital | $ | 647,795 | 633,134 | 618,038 | 602,835 | 587,888 | ||||
Tier 1 plus tier 2 capital | $ | 794,143 | 777,857 | 764,653 | 748,097 | 729,410 | ||||
Total risk-weighted assets | $ | 5,499,046 | 5,487,886 | 5,411,628 | 5,306,911 | 5,190,106 | ||||
Book value per common share | $ | 37.47 | 36.20 | 36.14 | 34.15 | 33.29 | ||||
Tangible book value per common share | $ | 34.42 | 33.14 | 33.07 | 31.09 | 30.22 | ||||
Cash dividend per common share | $ | 0.37 | 0.36 | 0.36 | 0.35 | 0.35 | ||||
ASSET QUALITY | ||||||||||
Gross loan charge-offs | $ | 63 | 3,787 | 10 | 26 | 15 | ||||
Recoveries | $ | 175 | 150 | 92 | 296 | 439 | ||||
Net loan charge-offs (recoveries) | $ | (112) | 3,637 | (82) | (270) | (424) | ||||
Net loan charge-offs (recoveries) to average loans | (0.01 %) | 0.31 % | (0.01 %) | (0.02 %) | (0.04 %) | |||||
Allowance for credit losses | $ | 56,666 | 54,454 | 56,590 | 55,408 | 51,638 | ||||
Allowance to loans | 1.22 % | 1.18 % | 1.24 % | 1.25 % | 1.19 % | |||||
Nonperforming loans | $ | 5,361 | 5,743 | 9,877 | 9,129 | 6,040 | ||||
Other real estate/repossessed assets | $ | 0 | 0 | 0 | 0 | 200 | ||||
Nonperforming loans to total loans | 0.12 % | 0.12 % | 0.22 % | 0.21 % | 0.14 % | |||||
Nonperforming assets to total assets | 0.09 % | 0.09 % | 0.17 % | 0.16 % | 0.11 % | |||||
NONPERFORMING ASSETS - COMPOSITION | ||||||||||
Residential real estate: | ||||||||||
Land development | $ | 95 | 97 | 100 | 1 | 1 | ||||
Construction | $ | 0 | 0 | 0 | 0 | 0 | ||||
Owner occupied / rental | $ | 2,968 | 2,878 | 3,008 | 2,288 | 3,370 | ||||
Commercial real estate: | ||||||||||
Land development | $ | 0 | 0 | 0 | 0 | 0 | ||||
Construction | $ | 0 | 0 | 0 | 0 | 0 | ||||
Owner occupied | $ | 41 | 42 | 0 | 0 | 200 | ||||
Non-owner occupied | $ | 0 | 0 | 0 | 0 | 0 | ||||
Non-real estate: | ||||||||||
Commercial assets | $ | 2,257 | 2,726 | 6,769 | 6,840 | 2,669 | ||||
Consumer assets | $ | 0 | 0 | 0 | 0 | 0 | ||||
Total nonperforming assets | $ | 5,361 | 5,743 | 9,877 | 9,129 | 6,240 | ||||
NONPERFORMING ASSETS - RECON | ||||||||||
Beginning balance | $ | 5,743 | 9,877 | 9,129 | 6,240 | 3,615 | ||||
Additions | $ | 423 | 224 | 906 | 4,570 | 2,802 | ||||
Return to performing status | $ | 0 | (102) | 0 | 0 | 0 | ||||
Principal payments | $ | (744) | (515) | (158) | (1,481) | (177) | ||||
Sale proceeds | $ | 0 | 0 | 0 | (200) | 0 | ||||
Loan charge-offs | $ | (61) | (3,741) | 0 | 0 | 0 | ||||
Valuation write-downs | $ | 0 | 0 | 0 | 0 | 0 | ||||
Ending balance | $ | 5,361 | 5,743 | 9,877 | 9,129 | 6,240 | ||||
LOAN PORTFOLIO COMPOSITION | ||||||||||
Commercial: | ||||||||||
Commercial & industrial | $ | 1,314,383 | 1,287,308 | 1,312,774 | 1,275,745 | 1,222,638 | ||||
Land development & construction | $ | 68,790 | 66,936 | 66,374 | 76,247 | 75,091 | ||||
Owner occupied comm'l R/E | $ | 705,645 | 748,837 | 746,714 | 732,844 | 719,338 | ||||
Non-owner occupied comm'l R/E | $ | 1,183,728 | 1,128,404 | 1,095,988 | 1,059,052 | 1,045,614 | ||||
Multi-family & residential rental | $ | 479,045 | 475,819 | 426,438 | 389,390 | 366,961 | ||||
Total commercial | $ | 3,751,591 | 3,707,304 | 3,648,288 | 3,533,278 | 3,429,642 | ||||
Retail: | ||||||||||
1-4 family mortgages | $ | 817,212 | 827,597 | 844,093 | 849,626 | 840,653 | ||||
Other consumer | $ | 67,746 | 65,880 | 60,637 | 55,341 | 51,711 | ||||
Total retail | $ | 884,958 | 893,477 | 904,730 | 904,967 | 892,364 | ||||
Total loans | $ | 4,636,549 | 4,600,781 | 4,553,018 | 4,438,245 | 4,322,006 | ||||
END OF PERIOD BALANCES | ||||||||||
Loans | $ | 4,636,549 | 4,600,781 | 4,553,018 | 4,438,245 | 4,322,006 | ||||
Securities | $ | 809,096 | 751,865 | 724,888 | 669,420 | 630,666 | ||||
Other interest-earning assets | $ | 315,140 | 336,019 | 240,780 | 135,766 | 184,625 | ||||
Total earning assets (before allowance) | $ | 5,760,785 | 5,688,665 | 5,518,686 | 5,243,431 | 5,137,297 | ||||
Total assets | $ | 6,141,200 | 6,052,161 | 5,917,127 | 5,602,388 | 5,465,953 | ||||
Noninterest-bearing deposits | $ | 1,173,499 | 1,264,523 | 1,182,219 | 1,119,888 | 1,134,995 | ||||
Interest-bearing deposits | $ | 3,508,286 | 3,433,843 | 3,273,679 | 3,026,686 | 2,872,815 | ||||
Total deposits | $ | 4,681,785 | 4,698,366 | 4,455,898 | 4,146,574 | 4,007,810 | ||||
Total borrowed funds | $ | 749,711 | 649,528 | 778,669 | 789,327 | 815,744 | ||||
Total interest-bearing liabilities | $ | 4,257,997 | 4,083,371 | 4,052,348 | 3,816,013 | 3,688,559 | ||||
Shareholders' equity | $ | 608,346 | 584,526 | 583,311 | 551,151 | 536,644 | ||||
AVERAGE BALANCES | ||||||||||
Loans | $ | 4,629,098 | 4,565,837 | 4,467,365 | 4,396,475 | 4,299,163 | ||||
Securities | $ | 784,608 | 742,145 | 699,872 | 640,627 | 634,099 | ||||
Other interest-earning assets | $ | 266,871 | 330,490 | 284,187 | 182,636 | 150,234 | ||||
Total earning assets (before allowance) | $ | 5,680,577 | 5,638,472 | 5,451,424 | 5,219,738 | 5,083,496 | ||||
Total assets | $ | 6,018,158 | 5,967,036 | 5,781,111 | 5,533,262 | 5,384,675 | ||||
Noninterest-bearing deposits | $ | 1,144,781 | 1,188,561 | 1,191,642 | 1,139,887 | 1,175,884 | ||||
Interest-bearing deposits | $ | 3,443,770 | 3,335,477 | 3,145,799 | 2,957,011 | 2,790,308 | ||||
Total deposits | $ | 4,588,551 | 4,524,038 | 4,337,441 | 4,096,898 | 3,966,192 | ||||
Total borrowed funds | $ | 738,628 | 770,838 | 796,077 | 800,577 | 816,848 | ||||
Total interest-bearing liabilities | $ | 4,182,398 | 4,106,315 | 3,941,876 | 3,757,588 | 3,607,156 | ||||
Shareholders' equity | $ | 594,145 | 582,829 | 566,852 | 540,868 | 527,180 | ||||
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SOURCE Mercantile Bank Corporation
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