Mercantile Bank Corporation Announces Strong Second Quarter 2023 Results
Significant year-over-year increase in net interest income, solid loan growth, and ongoing strength in asset quality metrics highlight quarter
"We are very pleased to report another quarter of strong financial performance," said Robert B. Kaminski, Jr., President and Chief Executive Officer of Mercantile. "Our robust operating results were driven by an approximately 39 percent increase in net interest income stemming from a higher net interest margin and solid loan growth. The sustained loan portfolio expansion and pristine asset quality metrics reflect our commitment to meeting the credit needs of our clients while utilizing sound underwriting practices and parameters. We believe our strong capital base positions us to withstand any challenges arising from changing economic conditions."
Second quarter highlights include:
- Significant increase in net interest income depicting net interest margin expansion and loan growth
- Notable increases in several key fee income categories
- Annualized commercial loan growth of approximately 6 percent and continued residential mortgage loan portfolio expansion
- Sustained strength in commercial loan pipeline
- Ongoing low levels of nonperforming assets, past due loans, and loan charge-offs
- Strong capital position
Operating Results
Total revenue, which consists of net interest income and noninterest income, was
The net interest margin was 4.05 percent in the second quarter of 2023, up from 2.88 percent in the prior-year second quarter. The yield on average earning assets was 5.61 percent during the current-year second quarter, an increase from 3.32 percent during the respective 2022 period. The higher yield on average earning assets primarily resulted from an increased yield on loans. The yield on loans was 6.19 percent during the second quarter of 2023, up from 3.97 percent during the second quarter of 2022 mainly due to higher interest rates on variable-rate commercial loans stemming from the Federal Open Market Committee ("FOMC") significantly raising the targeted federal funds rate in an effort to curb elevated inflation levels. The FOMC increased the targeted federal funds rate by 475 basis points during the period of May 2022 through May 2023. As of June 30, 2023, approximately 65 percent of the commercial loan portfolio consisted of variable-rate loans.
The cost of funds was 1.56 percent in the second quarter of 2023, up from 0.44 percent in the second quarter of 2022 primarily due to higher costs of deposits and borrowed funds, reflecting the impact of the rising interest rate environment, and a change in funding mix, consisting of a decrease in lower-cost non-time deposits and increases in higher-cost time deposits and borrowings as a percentage of interest-bearing liabilities. During the second quarter, a notable level of deposit funds migrated from lower-paying checking and savings accounts to higher-paying money market accounts and time deposits.
Mercantile recorded provisions for credit losses of
Noninterest income during the second quarter of 2023 was
Noninterest expense totaled
Mr. Kaminski commented, "The noteworthy increases in net interest income during the second quarter and first six months of 2023 compared to the respective 2022 periods mainly reflected vastly improved net interest margins and robust loan growth. We are pleased with the increases in several key fee income categories and remain focused on meeting growth objectives in a disciplined manner. Noninterest expense control continues to be a fundamental operating initiative, and we are continually examining our cost structure to identify further opportunities to enhance efficiency while still providing outstanding service to our customers."
Balance Sheet
As of June 30, 2023, total assets were
As of June 30, 2023, unfunded commitments on commercial construction and development loans, which are anticipated 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
Ray Reitsma, President of Mercantile Bank, noted, "Although impeded by full and partial payoffs, commercial loan growth was solid during the second quarter of 2023. In addition to the payoffs stemming from customers refinancing debt on the secondary market and using excess cash flows to reduce debt,
Commercial and industrial loans and owner-occupied commercial real estate loans combined represented approximately 59 percent of total commercial loans as of June 30, 2023, a level that has remained relatively consistent with prior periods and in line with Mercantile's expectations.
Total deposits at June 30, 2023, were
Asset Quality
Nonperforming assets totaled
The level of past due loans remains nominal, and the dollar volume of loan relationships on the internal watch list declined during the first six months of 2023. During the second quarter of 2023, loan charge-offs were
Mr. Reitsma commented, "Our asset quality measures remained strong during the second quarter, reflecting our ongoing commitment to underwriting loans in a sound and vigilant manner and our borrowers' sustained abilities to effectively manage issues stemming from the current operating environment, including higher interest rates and associated increase in debt service requirements. Through our robust loan review program and emphasis on early recognition and reporting of deteriorating credit relationships, we believe we are well positioned to identify credit issues and limit their impact on our overall financial condition."
Capital Position
Shareholders' equity totaled
All of Mercantile's investments are categorized as available-for-sale. As of June 30, 2023, the net unrealized loss on these investments totaled
Mercantile reported 16,018,048 total shares outstanding at June 30, 2023.
Mr. Kaminski concluded, "As demonstrated by our Board of Directors' declaration of an increased third quarter 2023 regular cash dividend, our sustained financial strength has allowed us to reward shareholders with competitive dividend yields while supporting loan portfolio expansion. We believe our strong overall financial condition, including solid capital levels, pristine asset quality measures, robust operating performance, and substantial loan origination opportunities, should allow us to successfully navigate through the myriad of challenges that could arise from changing economic conditions. While concerns about banks' liquidity positions and the stability of banks' deposit portfolios have eased, we continue to closely monitor our deposit base for any atypical activities, and to date believe that it remains stable. We increased our on-balance sheet liquidity during the second quarter of 2023 and believe our liquidity position remains sufficient to meet expected funding requirements. Our strong financial performance during the first six months of 2023 and anticipated loan growth give us confidence that robust operating results can be delivered during the remainder of the year and beyond as we continue our efforts to be a consistent and profitable performer."
Investor Presentation
Mercantile has prepared presentation materials that management intends to use during its previously announced second quarter 2023 conference call on Tuesday, July 18, 2023, at 10:00 a.m. Eastern Time, and from time to time thereafter in presentations about the company's operations and performance. These materials are available for viewing in the Investor Relations section of Mercantile's website at www.mercbank.com, and have also 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; the transition from LIBOR to SOFR; 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.
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 |
Mercantile Bank Corporation | ||||||
Second Quarter 2023 Results | ||||||
MERCANTILE BANK CORPORATION | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(Unaudited) | ||||||
JUNE 30, | DECEMBER 31, | JUNE 30, | ||||
2023 | 2022 | 2022 | ||||
ASSETS | ||||||
Cash and due from banks | $ | 69,133,000 | $ | 61,894,000 | $ | 89,167,000 |
Other interest-earning assets | 138,663,000 | 34,878,000 | 389,938,000 | |||
Total cash and cash equivalents | 207,796,000 | 96,772,000 | 479,105,000 | |||
Securities available for sale | 608,972,000 | 602,936,000 | 603,638,000 | |||
Federal Home Loan Bank stock | 21,513,000 | 17,721,000 | 17,721,000 | |||
Mortgage loans held for sale | 11,942,000 | 3,565,000 | 12,964,000 | |||
Loans | 4,051,843,000 | 3,916,619,000 | 3,723,800,000 | |||
Allowance for credit losses | (44,721,000) | (42,246,000) | (35,974,000) | |||
Loans, net | 4,007,122,000 | 3,874,373,000 | 3,687,826,000 | |||
Premises and equipment, net | 52,291,000 | 51,476,000 | 51,402,000 | |||
Bank owned life insurance | 81,500,000 | 80,727,000 | 75,664,000 | |||
Goodwill | 49,473,000 | 49,473,000 | 49,473,000 | |||
Core deposit intangible, net | 291,000 | 583,000 | 900,000 | |||
Other assets | 96,687,000 | 94,993,000 | 79,862,000 | |||
Total assets | $ | 5,137,587,000 | $ | 4,872,619,000 | $ | 5,058,555,000 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Deposits: | ||||||
Noninterest-bearing | $ | 1,371,633,000 | $ | 1,604,750,000 | $ | 1,740,432,000 |
Interest-bearing | 2,385,156,000 | 2,108,061,000 | 2,133,461,000 | |||
Total deposits | 3,756,789,000 | 3,712,811,000 | 3,873,893,000 | |||
Securities sold under agreements to repurchase | 219,457,000 | 194,340,000 | 203,339,000 | |||
Federal Home Loan Bank advances | 467,910,000 | 308,263,000 | 362,263,000 | |||
Subordinated debentures | 49,301,000 | 48,958,000 | 48,585,000 | |||
Subordinated notes | 88,800,000 | 88,628,000 | 88,457,000 | |||
Accrued interest and other liabilities | 76,628,000 | 78,211,000 | 53,035,000 | |||
Total liabilities | 4,658,885,000 | 4,431,211,000 | 4,629,572,000 | |||
SHAREHOLDERS' EQUITY | ||||||
Common stock | 292,906,000 | 290,436,000 | 288,199,000 | |||
Retained earnings | 247,313,000 | 216,313,000 | 188,452,000 | |||
Accumulated other comprehensive income/(loss) | (61,517,000) | (65,341,000) | (47,668,000) | |||
Total shareholders' equity | 478,702,000 | 441,408,000 | 428,983,000 | |||
Total liabilities and shareholders' equity | $ | 5,137,587,000 | $ | 4,872,619,000 | $ | 5,058,555,000 |
Mercantile Bank Corporation | |||||||||||||
Second Quarter 2023 Results | |||||||||||||
MERCANTILE BANK CORPORATION | |||||||||||||
CONSOLIDATED REPORTS OF INCOME | |||||||||||||
(Unaudited) | |||||||||||||
THREE MONTHS ENDED | THREE MONTHS ENDED | SIX MONTHS ENDED | SIX MONTHS ENDED | ||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||
INTEREST INCOME | |||||||||||||
Loans, including fees | $ | 62,006,000 | $ | 36,003,000 | $ | 119,159,000 | $ | 69,254,000 | |||||
Investment securities | 3,111,000 | 2,529,000 | 6,118,000 | 4,794,000 | |||||||||
Other interest-earning assets | 801,000 | 1,018,000 | 1,125,000 | 1,384,000 | |||||||||
Total interest income | 65,918,000 | 39,550,000 | 126,402,000 | 75,432,000 | |||||||||
INTEREST EXPENSE | |||||||||||||
Deposits | 12,379,000 | 1,873,000 | 20,286,000 | 3,698,000 | |||||||||
Short-term borrowings | 914,000 | 49,000 | 1,373,000 | 99,000 | |||||||||
Federal Home Loan Bank advances | 3,051,000 | 1,911,000 | 4,845,000 | 3,774,000 | |||||||||
Other borrowed money | 2,023,000 | 1,391,000 | 3,963,000 | 2,650,000 | |||||||||
Total interest expense | 18,367,000 | 5,224,000 | 30,467,000 | 10,221,000 | |||||||||
Net interest income | 47,551,000 | 34,326,000 | 95,935,000 | 65,211,000 | |||||||||
Provision for credit losses | 2,000,000 | 500,000 | 2,600,000 | 600,000 | |||||||||
Net interest income after | |||||||||||||
provision for credit losses | 45,551,000 | 33,826,000 | 93,335,000 | 64,611,000 | |||||||||
NONINTEREST INCOME | |||||||||||||
Service charges on accounts | 1,064,000 | 1,495,000 | 2,041,000 | 2,910,000 | |||||||||
Credit and debit card income | 2,426,000 | 2,134,000 | 4,485,000 | 4,015,000 | |||||||||
Mortgage banking income | 1,835,000 | 1,947,000 | 3,050,000 | 5,228,000 | |||||||||
Interest rate swap income | 748,000 | 430,000 | 1,785,000 | 1,781,000 | |||||||||
Payroll services | 572,000 | 464,000 | 1,317,000 | 1,102,000 | |||||||||
Earnings on bank owned life insurance | 402,000 | 785,000 | 802,000 | 1,072,000 | |||||||||
Other income | 598,000 | 486,000 | 1,117,000 | 910,000 | |||||||||
Total noninterest income | 7,645,000 | 7,741,000 | 14,597,000 | 17,018,000 | |||||||||
NONINTEREST EXPENSE | |||||||||||||
Salaries and benefits | 16,461,000 | 15,676,000 | 33,143,000 | 31,186,000 | |||||||||
Occupancy | 2,098,000 | 2,064,000 | 4,387,000 | 4,168,000 | |||||||||
Furniture and equipment | 878,000 | 935,000 | 1,700,000 | 1,869,000 | |||||||||
Data processing costs | 2,881,000 | 3,091,000 | 6,043,000 | 6,064,000 | |||||||||
Charitable foundation contributions | 2,000 | 506,000 | 12,000 | 506,000 | |||||||||
Other expense | 5,509,000 | 4,670,000 | 11,144,000 | 8,891,000 | |||||||||
Total noninterest expense | 27,829,000 | 26,942,000 | 56,429,000 | 52,684,000 | |||||||||
Income before federal income | |||||||||||||
tax expense | 25,367,000 | 14,625,000 | 51,503,000 | 28,945,000 | |||||||||
Federal income tax expense | 5,010,000 | 2,888,000 | 10,171,000 | 5,716,000 | |||||||||
Net Income | $ | 20,357,000 | $ | 11,737,000 | $ | 41,332,000 | $ | 23,229,000 | |||||
Basic earnings per share | |||||||||||||
Diluted earnings per share | |||||||||||||
Average basic shares outstanding | 16,003,372 | 15,848,681 | 15,999,775 | 15,844,763 | |||||||||
Average diluted shares outstanding | 16,003,372 | 15,848,681 | 15,999,775 | 15,844,790 | |||||||||
Mercantile Bank Corporation | ||||||||||||||
Second Quarter 2023 Results | ||||||||||||||
MERCANTILE BANK CORPORATION | ||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS | ||||||||||||||
(Unaudited) | ||||||||||||||
Quarterly | Year-To-Date | |||||||||||||
(dollars in thousands except per share data) | 2023 | 2023 | 2022 | 2022 | 2022 | |||||||||
2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 2023 | 2022 | ||||||||
EARNINGS | ||||||||||||||
Net interest income | $ | 47,551 | 48,384 | 50,657 | 42,376 | 34,326 | 95,935 | 65,211 | ||||||
Provision for credit losses | $ | 2,000 | 600 | 3,050 | 2,900 | 500 | 2,600 | 600 | ||||||
Noninterest income | $ | 7,645 | 6,951 | 7,805 | 7,253 | 7,741 | 14,597 | 17,018 | ||||||
Noninterest expense | $ | 27,829 | 28,599 | 28,541 | 26,756 | 26,942 | 56,429 | 52,684 | ||||||
Net income before federal income | ||||||||||||||
tax expense | $ | 25,367 | 26,136 | 26,871 | 19,973 | 14,625 | 51,503 | 28,945 | ||||||
Net income | $ | 20,357 | 20,974 | 21,803 | 16,030 | 11,737 | 41,332 | 23,229 | ||||||
Basic earnings per share | $ | 1.27 | 1.31 | 1.37 | 1.01 | 0.74 | 2.58 | 1.47 | ||||||
Diluted earnings per share | $ | 1.27 | 1.31 | 1.37 | 1.01 | 0.74 | 2.58 | 1.47 | ||||||
Average basic shares outstanding | 16,003,372 | 15,996,138 | 15,887,983 | 15,861,551 | 15,848,681 | 15,999,775 | 15,844,763 | |||||||
Average diluted shares outstanding | 16,003,372 | 15,996,138 | 15,887,983 | 15,861,551 | 15,848,681 | 15,999,775 | 15,844,790 | |||||||
PERFORMANCE RATIOS | ||||||||||||||
Return on average assets | 1.64 % | 1.75 % | 1.75 % | 1.27 % | 0.93 % | 1.69 % | 0.91 % | |||||||
Return on average equity | 17.23 % | 18.76 % | 20.26 % | 14.79 % | 10.98 % | 17.97 % | 10.66 % | |||||||
Net interest margin (fully tax-equivalent) | 4.05 % | 4.28 % | 4.30 % | 3.56 % | 2.88 % | 4.16 % | 2.73 % | |||||||
Efficiency ratio | 50.42 % | 51.69 % | 48.82 % | 53.91 % | 64.05 % | 51.05 % | 64.07 % | |||||||
Full-time equivalent employees | 665 | 633 | 630 | 635 | 651 | 665 | 651 | |||||||
YIELD ON ASSETS / COST OF FUNDS | ||||||||||||||
Yield on loans | 6.19 % | 5.90 % | 5.49 % | 4.56 % | 3.97 % | 6.05 % | 3.92 % | |||||||
Yield on securities | 2.00 % | 1.95 % | 1.91 % | 1.79 % | 1.68 % | 1.98 % | 1.60 % | |||||||
Yield on other interest-earning assets | 4.88 % | 4.18 % | 3.60 % | 2.15 % | 0.76 % | 4.65 % | 0.42 % | |||||||
Yield on total earning assets | 5.61 % | 5.35 % | 4.95 % | 4.04 % | 3.32 % | 5.48 % | 3.16 % | |||||||
Yield on total assets | 5.30 % | 5.06 % | 4.68 % | 3.80 % | 3.13 % | 5.18 % | 2.97 % | |||||||
Cost of deposits | 1.36 % | 0.87 % | 0.42 % | 0.24 % | 0.19 % | 1.12 % | 0.19 % | |||||||
Cost of borrowed funds | 2.90 % | 2.51 % | 2.13 % | 1.99 % | 1.90 % | 2.73 % | 1.86 % | |||||||
Cost of interest-bearing liabilities | 2.37 % | 1.72 % | 1.10 % | 0.81 % | 0.72 % | 2.06 % | 0.69 % | |||||||
Cost of funds (total earning assets) | 1.56 % | 1.07 % | 0.65 % | 0.48 % | 0.44 % | 1.32 % | 0.43 % | |||||||
Cost of funds (total assets) | 1.48 % | 1.01 % | 0.61 % | 0.45 % | 0.41 % | 1.25 % | 0.40 % | |||||||
MORTGAGE BANKING ACTIVITY | ||||||||||||||
Total mortgage loans originated | $ | 117,563 | 71,991 | 90,794 | 163,902 | 190,896 | 189,554 | 359,083 | ||||||
Purchase mortgage loans originated | $ | 100,941 | 56,728 | 79,604 | 140,898 | 157,423 | 157,669 | 258,832 | ||||||
Refinance mortgage loans originated | $ | 16,622 | 15,263 | 11,190 | 23,004 | 33,473 | 31,885 | 100,251 | ||||||
Total saleable mortgage loans | $ | 50,734 | 24,904 | 29,948 | 59,740 | 52,328 | 75,638 | 128,075 | ||||||
Income on sale of mortgage loans | $ | 1,570 | 950 | 1,401 | 1,779 | 1,751 | 2,520 | 4,955 | ||||||
CAPITAL | ||||||||||||||
Tangible equity to tangible assets | 8.43 % | 8.61 % | 8.12 % | 7.37 % | 7.56 % | 8.43 % | 7.56 % | |||||||
Tier 1 leverage capital ratio | 10.73 % | 10.66 % | 10.09 % | 9.63 % | 9.31 % | 10.73 % | 9.31 % | |||||||
Common equity risk-based capital ratio | 10.25 % | 10.25 % | 10.08 % | 9.80 % | 9.84 % | 10.25 % | 9.84 % | |||||||
Tier 1 risk-based capital ratio | 11.24 % | 11.27 % | 11.12 % | 10.84 % | 10.91 % | 11.24 % | 10.91 % | |||||||
Total risk-based capital ratio | 14.03 % | 14.11 % | 14.00 % | 13.69 % | 13.78 % | 14.03 % | 13.78 % | |||||||
Tier 1 capital | $ | 537,802 | 520,918 | 503,855 | 485,499 | 473,065 | 537,802 | 473,065 | ||||||
Tier 1 plus tier 2 capital | $ | 671,323 | 652,509 | 634,729 | 613,161 | 597,495 | 671,323 | 597,495 | ||||||
Total risk-weighted assets | $ | 4,784,428 | 4,623,631 | 4,533,091 | 4,479,176 | 4,337,040 | 4,784,428 | 4,337,040 | ||||||
Book value per common share | $ | 29.89 | 29.21 | 27.60 | 26.24 | 27.05 | 29.89 | 27.05 | ||||||
Tangible book value per common share | $ | 26.78 | 26.09 | 24.47 | 23.07 | 23.87 | 26.78 | 23.87 | ||||||
Cash dividend per common share | $ | 0.33 | 0.33 | 0.32 | 0.32 | 0.31 | 0.66 | 0.62 | ||||||
ASSET QUALITY | ||||||||||||||
Gross loan charge-offs | $ | 461 | 106 | 72 | 0 | 15 | 567 | 220 | ||||||
Recoveries | $ | 305 | 137 | 149 | 246 | 336 | 442 | 630 | ||||||
Net loan charge-offs (recoveries) | $ | 156 | (31) | (77) | (246) | (321) | 125 | (410) | ||||||
Net loan charge-offs to average loans | 0.02 % | (0.01 %) | (0.01 %) | (0.03 %) | (0.04 %) | 0.01 % | (0.02 %) | |||||||
Allowance for credit losses | $ | 44,721 | 42,877 | 42,246 | 39,120 | 35,974 | 44,721 | 35,974 | ||||||
Allowance to loans | 1.10 % | 1.08 % | 1.08 % | 1.01 % | 0.97 % | 1.10 % | 0.97 % | |||||||
Nonperforming loans | $ | 2,099 | 7,782 | 7,728 | 1,416 | 1,787 | 2,099 | 1,787 | ||||||
Other real estate/repossessed assets | $ | 661 | 661 | 0 | 0 | 0 | 661 | 0 | ||||||
Nonperforming loans to total loans | 0.05 % | 0.20 % | 0.20 % | 0.04 % | 0.05 % | 0.05 % | 0.05 % | |||||||
Nonperforming assets to total assets | 0.05 % | 0.17 % | 0.16 % | 0.03 % | 0.04 % | 0.05 % | 0.04 % | |||||||
NONPERFORMING ASSETS - COMPOSITION | ||||||||||||||
Residential real estate: | ||||||||||||||
Land development | $ | 2 | 8 | 29 | 30 | 30 | 2 | 30 | ||||||
Construction | $ | 0 | 0 | 124 | 0 | 0 | 0 | 0 | ||||||
Owner occupied / rental | $ | 1,793 | 1,952 | 1,304 | 1,138 | 1,508 | 1,793 | 1,508 | ||||||
Commercial real estate: | ||||||||||||||
Land development | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Construction | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Owner occupied | $ | 716 | 829 | 248 | 0 | 0 | 716 | 0 | ||||||
Non-owner occupied | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Non-real estate: | ||||||||||||||
Commercial assets | $ | 249 | 5,654 | 6,023 | 248 | 248 | 249 | 248 | ||||||
Consumer assets | $ | 0 | 0 | 0 | 0 | 1 | 0 | 1 | ||||||
Total nonperforming assets | $ | 2,760 | 8,443 | 7,728 | 1,416 | 1,787 | 2,760 | 1,787 | ||||||
NONPERFORMING ASSETS - RECON | ||||||||||||||
Beginning balance | $ | 8,443 | 7,728 | 1,416 | 1,787 | 1,612 | 7,728 | 2,468 | ||||||
Additions | $ | 273 | 1,323 | 6,368 | 0 | 309 | 1,596 | 402 | ||||||
Return to performing status | $ | 0 | (31) | 0 | (160) | 0 | (31) | (213) | ||||||
Principal payments | $ | (5,526) | (515) | (56) | (211) | (134) | (6,041) | (775) | ||||||
Sale proceeds | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Loan charge-offs | $ | (430) | (62) | 0 | 0 | 0 | (492) | (95) | ||||||
Valuation write-downs | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Ending balance | $ | 2,760 | 8,443 | 7,728 | 1,416 | 1,787 | 2,760 | 1,787 | ||||||
LOAN PORTFOLIO COMPOSITION | ||||||||||||||
Commercial: | ||||||||||||||
Commercial & industrial | $ | 1,212,196 | 1,173,440 | 1,185,084 | 1,213,630 | 1,187,650 | 1,212,196 | 1,187,650 | ||||||
Land development & construction | $ | 72,682 | 66,233 | 61,873 | 60,970 | 57,808 | 72,682 | 57,808 | ||||||
Owner occupied comm'l R/E | $ | 659,201 | 630,186 | 639,192 | 643,577 | 598,593 | 659,201 | 598,593 | ||||||
Non-owner occupied comm'l R/E | $ | 957,221 | 975,735 | 979,214 | 963,144 | 974,009 | 957,221 | 974,009 | ||||||
Multi-family & residential rental | $ | 287,285 | 294,825 | 266,468 | 263,741 | 253,700 | 287,285 | 253,700 | ||||||
Total commercial | $ | 3,188,585 | 3,140,419 | 3,131,831 | 3,145,062 | 3,071,760 | 3,188,585 | 3,071,760 | ||||||
Retail: | ||||||||||||||
1-4 family mortgages & home equity | $ | 833,198 | 795,009 | 755,035 | 705,442 | 623,599 | 833,198 | 623,599 | ||||||
Other consumer | $ | 30,060 | 30,100 | 29,753 | 30,454 | 28,441 | 30,060 | 28,441 | ||||||
Total retail | $ | 863,258 | 825,109 | 784,788 | 735,896 | 652,040 | 863,258 | 652,040 | ||||||
Total loans | $ | 4,051,843 | 3,965,528 | 3,916,619 | 3,880,958 | 3,723,800 | 4,051,843 | 3,723,800 | ||||||
END OF PERIOD BALANCES | ||||||||||||||
Loans | $ | 4,051,843 | 3,965,528 | 3,916,619 | 3,880,958 | 3,723,800 | 4,051,843 | 3,723,800 | ||||||
Securities | $ | 630,485 | 637,694 | 620,657 | 600,720 | 621,359 | 630,485 | 621,359 | ||||||
Other interest-earning assets | $ | 138,663 | 10,787 | 34,878 | 220,909 | 389,938 | 138,663 | 389,938 | ||||||
Total earning assets (before allowance) | $ | 4,820,991 | 4,614,009 | 4,572,154 | 4,702,587 | 4,735,097 | 4,820,991 | 4,735,097 | ||||||
Total assets | $ | 5,137,587 | 4,895,874 | 4,872,619 | 5,016,934 | 5,058,555 | 5,137,587 | 5,058,555 | ||||||
Noninterest-bearing deposits | $ | 1,371,633 | 1,376,782 | 1,604,750 | 1,716,904 | 1,740,432 | 1,371,633 | 1,740,432 | ||||||
Interest-bearing deposits | $ | 2,385,156 | 2,221,236 | 2,108,061 | 2,129,181 | 2,133,461 | 2,385,156 | 2,133,461 | ||||||
Total deposits | $ | 3,756,789 | 3,598,018 | 3,712,811 | 3,846,085 | 3,873,893 | 3,756,789 | 3,873,893 | ||||||
Total borrowed funds | $ | 826,558 | 761,509 | 641,295 | 675,332 | 703,809 | 826,558 | 703,809 | ||||||
Total interest-bearing liabilities | $ | 3,211,714 | 2,982,745 | 2,749,356 | 2,804,513 | 2,837,270 | 3,211,714 | 2,837,270 | ||||||
Shareholders' equity | $ | 478,702 | 467,372 | 441,408 | 416,261 | 428,983 | 478,702 | 428,983 | ||||||
AVERAGE BALANCES | ||||||||||||||
Loans | $ | 4,017,690 | 3,928,329 | 3,887,967 | 3,814,338 | 3,633,587 | 3,973,256 | 3,559,461 | ||||||
Securities | $ | 634,607 | 627,628 | 606,390 | 618,043 | 615,733 | 631,137 | 614,532 | ||||||
Other interest-earning assets | $ | 64,958 | 31,081 | 179,507 | 294,969 | 530,571 | 48,113 | 656,682 | ||||||
Total earning assets (before allowance) | $ | 4,717,255 | 4,587,038 | 4,673,864 | 4,727,350 | 4,779,891 | 4,652,506 | 4,830,675 | ||||||
Total assets | $ | 4,988,413 | 4,855,877 | 4,949,868 | 5,025,998 | 5,077,458 | 4,922,511 | 5,122,758 | ||||||
Noninterest-bearing deposits | $ | 1,361,901 | 1,491,477 | 1,722,632 | 1,723,609 | 1,706,349 | 1,426,331 | 1,666,125 | ||||||
Interest-bearing deposits | $ | 2,278,877 | 2,184,406 | 2,077,547 | 2,144,047 | 2,201,797 | 2,231,902 | 2,282,667 | ||||||
Total deposits | $ | 3,640,778 | 3,675,883 | 3,800,179 | 3,867,656 | 3,908,146 | 3,658,233 | 3,948,792 | ||||||
Total borrowed funds | $ | 827,105 | 676,724 | 667,864 | 689,091 | 705,774 | 752,330 | 706,621 | ||||||
Total interest-bearing liabilities | $ | 3,105,982 | 2,861,130 | 2,745,411 | 2,833,138 | 2,907,571 | 2,984,232 | 2,989,288 | ||||||
Shareholders' equity | $ | 473,983 | 453,524 | 426,897 | 430,093 | 428,873 | 483,810 | 439,310 | ||||||
View original content:https://www.prnewswire.com/news-releases/mercantile-bank-corporation-announces-strong-second-quarter-2023-results-301879158.html
SOURCE Mercantile Bank Corporation
