Mercantile Bank Corporation Reports Strong Second Quarter 2021 Results
Mercantile Bank Corporation (NASDAQ: MBWM) reported a strong second quarter of 2021, achieving net income of $18.1 million or $1.12 per diluted share, significantly up from $8.7 million or $0.54 per share year-over-year. Total revenue reached $45.4 million, a 9.3% increase, driven by robust mortgage banking income and fee income growth. Core commercial loans rose, contributing to a solid capital position with total assets of $4.76 billion. The bank announced a 3.4% increase in cash dividends for Q3 2021, reflecting confidence in continued growth despite challenges posed by the COVID-19 pandemic.
- Net income increased to $18.1 million from $8.7 million year-over-year.
- Total revenue rose to $45.4 million, up 9.3% from the prior-year period.
- Core commercial loans grew significantly, indicating strong demand.
- Cash dividend for Q3 2021 increased by 3.4%.
- Net interest margin declined to 2.76% from 3.17% year-over-year.
- Yield on average earning assets decreased from 3.85% to 3.20%.
- Noninterest expense rose by 12.8% due to increased compensation and health insurance costs.
GRAND RAPIDS, Mich., July 20, 2021 /PRNewswire/ -- Mercantile Bank Corporation (NASDAQ: MBWM) ("Mercantile") reported net income of
"We are very pleased to report another quarter of strong financial performance," said Robert B. Kaminski, Jr., President and Chief Executive Officer of Mercantile. "The growth in core commercial loans during the first half of 2021 reflects our unwavering focus on meeting the traditional credit needs of our existing clients and developing new relationships, while at the same time assisting customers with Paycheck Protection Program lending activities.
"As evidenced by the continuing strength in mortgage banking income, our strategic initiatives designed to increase market share remained effective during the period. As Mercantile employees return to their physical locations in light of currently improving COVID-19 conditions, I would like to personally thank each of them for their exceptional efforts to assist our customers with their banking needs during these challenging times. The resiliency displayed by our team members and clients during the pandemic has been truly remarkable, and we look forward to continuing to build mutually beneficial relationships with existing and prospective customers."
Second quarter highlights include:
- Strong earnings and capital position
- Robust mortgage banking income and growth in other key fee income categories
- Loan loss reserve release, primarily reflecting improved economic and business conditions
- Continued strength in asset quality metrics
- Solid growth in core commercial loans and residential mortgage loans
- Sustained strength in commercial loan and residential mortgage loan pipelines
- Further growth in local deposits
- Announced third quarter 2021 regular cash dividend of
$0.30 per common share, an increase of 3.4 percent from the regular cash dividend paid during the second quarter of 2021
Operating Results
Total revenue, which consists of net interest income and noninterest income, was
The yield on average earning assets declined from 3.85 percent during the second quarter of 2020 to 3.20 percent during the respective 2021 period mainly due to a change in earning asset mix and decreased yields on commercial loans and securities. The lower yield on commercial loans primarily stemmed from the origination of new loans and renewal of maturing loans in the decreased interest rate environment. The decreased yield on securities mainly reflected a lower level of accelerated discount accretion on called U.S. Government agency bonds and reduced yields on newly purchased bonds, attributed to the declining interest rate environment. Accelerated discount accretion totaled
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 during the remainder of 2020 and first six months of 2021, negatively impacted both the yield on average earning assets and the net interest margin by 35 basis points to 40 basis points during the second quarter and first six months of 2021. The excess funds, consisting primarily of low-yielding deposits with the Federal Reserve Bank of Chicago, are mainly a product of federal government stimulus programs, lower business and consumer investing and spending, and Paycheck Protection Program forgiveness activities.
The cost of funds decreased from 0.68 percent during the second quarter of 2020 to 0.44 percent during the current-year second quarter, primarily due to a change in funding mix, consisting of an increase in lower-costing non-time deposits as a percentage of total funding sources, and lower rates paid on local time deposits, reflecting the declining interest rate environment.
Mercantile recorded a negative provision expense of
Noninterest income during the second quarter of 2021 was
Noninterest expense totaled
Mr. Kaminski commented, "Despite an expected reduction in refinance activity, we were able to record another quarter of strong mortgage banking income, in large part reflecting increased purchase activity and the ongoing success of strategic initiatives that were implemented to boost market share. In an effort to enhance mortgage loan production, we will continue to identify opportunities to add lending talent to the mortgage team and expand our market presence. Based on the current loan pipeline and application volume, along with our recent lender hires and entrance into new markets, we believe solid mortgage banking income can be realized in future periods.
"We remain committed to improving our noninterest income revenue streams and are very pleased with the success of the recently introduced interest rate swap program, along with the growth in other key fee income categories. Our desire to meet growth objectives in a cost-conscious manner remains a priority, and we will continue to regularly review our branch system and other expense categories to identify potential opportunities to conduct business more efficiently."
Balance Sheet
As of June 30, 2021, total assets were
Ray Reitsma, President of Mercantile Bank of Michigan, noted, "During the second quarter, we continued our efforts to grow the commercial loan portfolio by assessing and meeting the credit needs of our existing customers and fostering relationships with new clients. We remain focused on growing the portfolio in a prudent manner, with emphasis on proper underwriting and risk-based pricing. We are very pleased with the levels of net core commercial loan and residential mortgage loan growth during the quarter, along with the ongoing strength of our commercial loan and residential mortgage loan pipelines."
Excluding the impact of Paycheck Protection Program loan originations, commercial and industrial loans and owner-occupied commercial real estate loans together represented approximately 55 percent of total commercial loans as of June 30, 2021, a level that has remained relatively consistent and in line with internal expectations.
Total deposits at June 30, 2021, were
Asset Quality
Nonperforming assets totaled
Mr. Reitsma commented, "Our asset quality metrics have remained strong during the COVID-19 pandemic. The ongoing low levels of past due loans and nonperforming assets are a testament of our commitment to underwriting loans in a sound manner and the abilities of our commercial borrowers' management teams to effectively guide their entities through pandemic-related challenges."
Capital Position
Shareholders' equity totaled
As part of
Mr. Kaminski concluded, "Although the challenges associated with the COVID-19 pandemic appear to have diminished, we will closely monitor any new developments and adjust our response plan as deemed necessary. Our enduring strong operating performance and overall financial position have enabled us to continue the cash dividend program and provide shareholders with a cash return on their investment. We were pleased to announce earlier today that our Board of Directors declared an increased third quarter 2021 regular cash dividend. We are focused on remaining a steady high performer that provides consistent and profitable growth and believe we are well positioned to produce solid operating results during the last six months of 2021 and beyond."
Investor Presentation
Mercantile has prepared presentation materials that management intends to use during its previously announced second quarter 2021 conference call on Tuesday, July 20, 2021, at 10:00 a.m. Eastern Time, and from time to time thereafter in presentations about the Company's operations and performance. The Investor Presentation also contains information relating to Mercantile's COVID-19 pandemic response plan. 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 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
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; 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; 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; 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.
FOR FURTHER INFORMATION: | ||
Robert B. Kaminski, Jr. | Charles Christmas | |
President & CEO | Executive Vice President & CFO | |
616-726-1502 | 616-726-1202 | |
Mercantile Bank Corporation | ||||||
Second Quarter 2021 Results | ||||||
MERCANTILE BANK CORPORATION | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(Unaudited) | ||||||
JUNE 30, | DECEMBER 31, | JUNE 30, | ||||
2021 | 2020 | 2020 | ||||
ASSETS | ||||||
Cash and due from banks | $ | 75,893,000 | $ | 62,832,000 | $ | 84,516,000 |
Interest-earning deposits | 683,638,000 | 563,174,000 | 386,711,000 | |||
Total cash and cash equivalents | 759,531,000 | 626,006,000 | 471,227,000 | |||
Securities available for sale | 506,125,000 | 387,347,000 | 307,661,000 | |||
Federal Home Loan Bank stock | 18,002,000 | 18,002,000 | 18,002,000 | |||
Loans | 3,248,841,000 | 3,193,470,000 | 3,291,919,000 | |||
Allowance for loan losses | (35,913,000) | (37,967,000) | (32,246,000) | |||
Loans, net | 3,212,928,000 | 3,155,503,000 | 3,259,673,000 | |||
Premises and equipment, net | 58,250,000 | 58,959,000 | 59,155,000 | |||
Bank owned life insurance | 72,679,000 | 72,131,000 | 70,900,000 | |||
Goodwill | 49,473,000 | 49,473,000 | 49,473,000 | |||
Core deposit intangible, net | 1,827,000 | 2,436,000 | 3,072,000 | |||
Mortgage loans held for sale | 27,720,000 | 22,888,000 | 41,137,000 | |||
Other assets | 50,879,000 | 44,599,000 | 34,079,000 | |||
Total assets | $ | 4,757,414,000 | $ | 4,437,344,000 | $ | 4,314,379,000 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Deposits: | ||||||
Noninterest-bearing | $ | 1,620,829,000 | $ | 1,433,403,000 | $ | 1,445,620,000 |
Interest-bearing | 2,050,442,000 | 1,978,150,000 | 1,816,660,000 | |||
Total deposits | 3,671,271,000 | 3,411,553,000 | 3,262,280,000 | |||
Securities sold under agreements to repurchase | 169,737,000 | 118,365,000 | 167,527,000 | |||
Federal Home Loan Bank advances | 394,000,000 | 394,000,000 | 394,000,000 | |||
Subordinated debentures | 47,904,000 | 47,563,000 | 47,222,000 | |||
Accrued interest and other liabilities | 22,614,000 | 24,309,000 | 18,129,000 | |||
Total liabilities | 4,305,526,000 | 3,995,790,000 | 3,889,158,000 | |||
SHAREHOLDERS' EQUITY | ||||||
Common stock | 293,232,000 | 302,029,000 | 300,897,000 | |||
Retained earnings | 157,150,000 | 134,039,000 | 118,239,000 | |||
Accumulated other comprehensive income/(loss) | 1,506,000 | 5,486,000 | 6,085,000 | |||
Total shareholders' equity | 451,888,000 | 441,554,000 | 425,221,000 | |||
Total liabilities and shareholders' equity | $ | 4,757,414,000 | $ | 4,437,344,000 | $ | 4,314,379,000 |
Mercantile Bank Corporation | |||||||||||||
Second Quarter 2021 Results | |||||||||||||
MERCANTILE BANK CORPORATION | |||||||||||||
CONSOLIDATED REPORTS OF INCOME | |||||||||||||
(Unaudited) | |||||||||||||
THREE MONTHS ENDED | THREE MONTHS ENDED | SIX MONTHS ENDED | SIX MONTHS ENDED | ||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | ||||||||||
INTEREST INCOME | |||||||||||||
Loans, including fees | $ | 33,789,000 | $ | 34,322,000 | $ | 66,774,000 | $ | 67,764,000 | |||||
Investment securities | 1,802,000 | 2,749,000 | 3,434,000 | 6,766,000 | |||||||||
Other interest-earning assets | 183,000 | 93,000 | 351,000 | 568,000 | |||||||||
Total interest income | 35,774,000 | 37,164,000 | 70,559,000 | 75,098,000 | |||||||||
INTEREST EXPENSE | |||||||||||||
Deposits | 2,346,000 | 3,700,000 | 5,063,000 | 8,342,000 | |||||||||
Short-term borrowings | 40,000 | 55,000 | 76,000 | 94,000 | |||||||||
Federal Home Loan Bank advances | 2,050,000 | 2,214,000 | 4,077,000 | 4,427,000 | |||||||||
Other borrowed money | 467,000 | 624,000 | 939,000 | 1,348,000 | |||||||||
Total interest expense | 4,903,000 | 6,593,000 | 10,155,000 | 14,211,000 | |||||||||
Net interest income | 30,871,000 | 30,571,000 | 60,404,000 | 60,887,000 | |||||||||
Provision for loan losses | (3,100,000) | 7,600,000 | (2,800,000) | 8,350,000 | |||||||||
Net interest income after | |||||||||||||
provision for loan losses | 33,971,000 | 22,971,000 | 63,204,000 | 52,537,000 | |||||||||
NONINTEREST INCOME | |||||||||||||
Service charges on accounts | 1,209,000 | 1,045,000 | 2,363,000 | 2,267,000 | |||||||||
Mortgage banking income | 7,695,000 | 7,640,000 | 16,495,000 | 10,267,000 | |||||||||
Credit and debit card income | 1,920,000 | 1,374,000 | 3,598,000 | 2,735,000 | |||||||||
Interest rate swap income | 1,495,000 | 0 | 2,148,000 | 0 | |||||||||
Payroll services | 405,000 | 370,000 | 962,000 | 947,000 | |||||||||
Earnings on bank owned life insurance | 297,000 | 307,000 | 574,000 | 643,000 | |||||||||
Gain on sale of branch | 1,058,000 | 0 | 1,058,000 | 0 | |||||||||
Other income | 477,000 | 248,000 | 821,000 | 675,000 | |||||||||
Total noninterest income | 14,556,000 | 10,984,000 | 28,019,000 | 17,534,000 | |||||||||
NONINTEREST EXPENSE | |||||||||||||
Salaries and benefits | 16,194,000 | 14,126,000 | 31,279,000 | 27,654,000 | |||||||||
Occupancy | 1,977,000 | 1,862,000 | 3,991,000 | 3,921,000 | |||||||||
Furniture and equipment | 902,000 | 851,000 | 1,791,000 | 1,629,000 | |||||||||
Data processing costs | 2,775,000 | 2,633,000 | 5,392,000 | 5,117,000 | |||||||||
Other expense | 4,344,000 | 3,744,000 | 8,856,000 | 7,835,000 | |||||||||
Total noninterest expense | 26,192,000 | 23,216,000 | 51,309,000 | 46,156,000 | |||||||||
Income before federal income | |||||||||||||
tax expense | 22,335,000 | 10,739,000 | 39,914,000 | 23,915,000 | |||||||||
Federal income tax expense | 4,244,000 | 2,041,000 | 7,583,000 | 4,545,000 | |||||||||
Net Income | $ | 18,091,000 | $ | 8,698,000 | $ | 32,331,000 | $ | 19,370,000 | |||||
Basic earnings per share | |||||||||||||
Diluted earnings per share | |||||||||||||
Average basic shares outstanding | 16,116,070 | 16,212,500 | 16,199,096 | 16,281,391 | |||||||||
Average diluted shares outstanding | 16,116,666 | 16,213,264 | 16,199,620 | 16,282,341 | |||||||||
Mercantile Bank Corporation | ||||||||||||||
Second Quarter 2021 Results | ||||||||||||||
MERCANTILE BANK CORPORATION | ||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS | ||||||||||||||
(Unaudited) | ||||||||||||||
Quarterly | Year-To-Date | |||||||||||||
(dollars in thousands except per share data) | 2021 | 2021 | 2020 | 2020 | 2020 | |||||||||
2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 2021 | 2020 | ||||||||
EARNINGS | ||||||||||||||
Net interest income | $ | 30,871 | 29,533 | 31,849 | 29,509 | 30,571 | 60,404 | 60,887 | ||||||
Provision for loan losses | $ | (3,100) | 300 | 2,500 | 3,200 | 7,600 | (2,800) | 8,350 | ||||||
Noninterest income | $ | 14,556 | 13,463 | 14,333 | 13,307 | 10,984 | 28,019 | 17,534 | ||||||
Noninterest expense | $ | 26,192 | 25,117 | 25,941 | 26,423 | 23,216 | 51,309 | 46,156 | ||||||
Net income before federal income | ||||||||||||||
tax expense | $ | 22,335 | 17,579 | 17,741 | 13,193 | 10,739 | 39,914 | 23,915 | ||||||
Net income | $ | 18,091 | 14,239 | 14,082 | 10,686 | 8,698 | 32,331 | 19,370 | ||||||
Basic earnings per share | $ | 1.12 | 0.87 | 0.87 | 0.66 | 0.54 | 2.00 | 1.19 | ||||||
Diluted earnings per share | $ | 1.12 | 0.87 | 0.87 | 0.66 | 0.54 | 2.00 | 1.19 | ||||||
Average basic shares outstanding | 16,116,070 | 16,283,044 | 16,279,052 | 16,233,196 | 16,212,500 | 16,199,096 | 16,281,391 | |||||||
Average diluted shares outstanding | 16,116,666 | 16,283,490 | 16,279,243 | 16,233,666 | 16,213,264 | 16,199,620 | 16,282,341 | |||||||
PERFORMANCE RATIOS | ||||||||||||||
Return on average assets | ||||||||||||||
Return on average equity | ||||||||||||||
Net interest margin (fully tax-equivalent) | ||||||||||||||
Efficiency ratio | ||||||||||||||
Full-time equivalent employees | 634 | 621 | 621 | 618 | 637 | 634 | 637 | |||||||
YIELD ON ASSETS / COST OF FUNDS | ||||||||||||||
Yield on loans | ||||||||||||||
Yield on securities | ||||||||||||||
Yield on other interest-earning assets | ||||||||||||||
Yield on total earning assets | ||||||||||||||
Yield on total assets | ||||||||||||||
Cost of deposits | ||||||||||||||
Cost of borrowed funds | ||||||||||||||
Cost of interest-bearing liabilities | ||||||||||||||
Cost of funds (total earning assets) | ||||||||||||||
Cost of funds (total assets) | ||||||||||||||
PURCHASE ACCOUNTING ADJUSTMENTS | ||||||||||||||
Loan portfolio - increase interest income | $ | 54 | 51 | 158 | 332 | 169 | 105 | 454 | ||||||
Trust preferred - increase interest expense | $ | 171 | 171 | 171 | 171 | 171 | 342 | 342 | ||||||
Core deposit intangible - increase overhead | $ | 291 | 318 | 318 | 318 | 371 | 609 | 768 | ||||||
MORTGAGE BANKING ACTIVITY | ||||||||||||||
Total mortgage loans originated | $ | 237,299 | 245,200 | 218,904 | 237,195 | 275,486 | 482,499 | 408,345 | ||||||
Purchase mortgage loans originated | $ | 144,476 | 81,529 | 99,490 | 93,068 | 58,015 | 226,005 | 104,553 | ||||||
Refinance mortgage loans originated | $ | 92,823 | 163,671 | 119,414 | 144,127 | 217,471 | 256,494 | 303,792 | ||||||
Total saleable mortgage loans | $ | 140,497 | 195,655 | 159,942 | 191,318 | 225,665 | 336,152 | 320,992 | ||||||
Income on sale of mortgage loans | $ | 7,690 | 9,182 | 9,476 | 10,199 | 7,760 | 16,872 | 9,846 | ||||||
CAPITAL | ||||||||||||||
Tangible equity to tangible assets | ||||||||||||||
Tier 1 leverage capital ratio | ||||||||||||||
Common equity risk-based capital ratio | ||||||||||||||
Tier 1 risk-based capital ratio | ||||||||||||||
Total risk-based capital ratio | ||||||||||||||
Tier 1 capital | $ | 445,410 | 437,567 | 430,146 | 420,225 | 412,526 | 445,410 | 412,526 | ||||||
Tier 1 plus tier 2 capital | $ | 481,324 | 476,462 | 468,113 | 455,797 | 444,772 | 481,324 | 444,772 | ||||||
Total risk-weighted assets | $ | 3,677,180 | 3,526,161 | 3,391,563 | 3,298,047 | 3,238,444 | 3,677,180 | 3,238,444 | ||||||
Book value per common share | $ | 28.23 | 27.21 | 27.04 | 26.59 | 26.20 | 28.23 | 26.20 | ||||||
Tangible book value per common share | $ | 25.03 | 24.02 | 23.86 | 23.37 | 22.96 | 25.03 | 22.96 | ||||||
Cash dividend per common share | $ | 0.29 | 0.29 | 0.28 | 0.28 | 0.28 | 0.58 | 0.56 | ||||||
ASSET QUALITY | ||||||||||||||
Gross loan charge-offs | $ | 68 | 53 | 340 | 124 | 335 | 121 | 375 | ||||||
Recoveries | $ | 386 | 481 | 234 | 250 | 153 | 867 | 382 | ||||||
Net loan charge-offs (recoveries) | $ | (318) | (428) | 106 | (126) | 182 | (746) | (7) | ||||||
Net loan charge-offs to average loans | ( | ( | ( | ( | < ( | |||||||||
Allowance for loan losses | $ | 35,913 | 38,695 | 37,967 | 35,572 | 32,246 | 35,913 | 32,246 | ||||||
Allowance to loans | ||||||||||||||
Allowance to loans excluding PPP loans | ||||||||||||||
Nonperforming loans | $ | 2,746 | 2,793 | 3,384 | 4,141 | 3,212 | 2,746 | 3,212 | ||||||
Other real estate/repossessed assets | $ | 404 | 374 | 701 | 512 | 198 | 404 | 198 | ||||||
Nonperforming loans to total loans | ||||||||||||||
Nonperforming assets to total assets | ||||||||||||||
NONPERFORMING ASSETS - COMPOSITION | ||||||||||||||
Residential real estate: | ||||||||||||||
Land development | $ | 34 | 34 | 35 | 36 | 36 | 34 | 36 | ||||||
Construction | $ | 0 | 0 | 0 | 198 | 198 | 0 | 198 | ||||||
Owner occupied / rental | $ | 2,137 | 2,305 | 2,607 | 2,597 | 2,750 | 2,137 | 2,750 | ||||||
Commercial real estate: | ||||||||||||||
Land development | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Construction | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Owner occupied | $ | 363 | 646 | 1,232 | 1,576 | 275 | 363 | 275 | ||||||
Non-owner occupied | $ | 0 | 0 | 22 | 23 | 25 | 0 | 25 | ||||||
Non-real estate: | ||||||||||||||
Commercial assets | $ | 606 | 169 | 172 | 198 | 98 | 606 | 98 | ||||||
Consumer assets | $ | 10 | 13 | 17 | 25 | 28 | 10 | 28 | ||||||
Total nonperforming assets | 3,150 | 3,167 | 4,085 | 4,653 | 3,410 | 3,150 | 3,410 | |||||||
NONPERFORMING ASSETS - RECON | ||||||||||||||
Beginning balance | $ | 3,167 | 4,085 | 4,653 | 3,410 | 3,740 | 4,085 | 2,736 | ||||||
Additions | $ | 522 | 116 | 972 | 1,615 | 220 | 638 | 1,533 | ||||||
Return to performing status | $ | 0 | (115) | 0 | (72) | (26) | (115) | (33) | ||||||
Principal payments | $ | (484) | (559) | (1,064) | (249) | (278) | (1,043) | (388) | ||||||
Sale proceeds | $ | 0 | (77) | (245) | 0 | (49) | (77) | (241) | ||||||
Loan charge-offs | $ | (55) | (33) | (231) | (51) | (173) | (88) | (173) | ||||||
Valuation write-downs | $ | 0 | (250) | 0 | 0 | (24) | (250) | (24) | ||||||
Ending balance | $ | 3,150 | 3,167 | 4,085 | 4,653 | 3,410 | 3,150 | 3,410 | ||||||
LOAN PORTFOLIO COMPOSITION | ||||||||||||||
Commercial: | ||||||||||||||
Commercial & industrial | $ | 1,103,807 | 1,284,507 | 1,145,423 | 1,321,419 | 1,307,456 | 1,103,807 | 1,307,456 | ||||||
Land development & construction | $ | 43,111 | 58,738 | 55,055 | 50,941 | 52,984 | 43,111 | 52,984 | ||||||
Owner occupied comm'l R/E | $ | 550,504 | 544,342 | 529,953 | 549,364 | 567,621 | 550,504 | 567,621 | ||||||
Non-owner occupied comm'l R/E | $ | 950,993 | 932,334 | 917,436 | 878,897 | 841,145 | 950,993 | 841,145 | ||||||
Multi-family & residential rental | $ | 161,894 | 147,294 | 146,095 | 137,740 | 132,047 | 161,894 | 132,047 | ||||||
Total commercial | $ | 2,810,309 | 2,967,215 | 2,793,962 | 2,938,361 | 2,901,253 | 2,810,309 | 2,901,253 | ||||||
Retail: | ||||||||||||||
1-4 family mortgages | $ | 380,292 | 337,844 | 337,888 | 322,118 | 325,923 | 380,292 | 325,923 | ||||||
Home equity & other consumer | $ | 58,240 | 59,311 | 61,620 | 63,723 | 64,743 | 58,240 | 64,743 | ||||||
Total retail | $ | 438,532 | 397,155 | 399,508 | 385,841 | 390,666 | 438,532 | 390,666 | ||||||
Total loans | $ | 3,248,841 | 3,364,370 | 3,193,470 | 3,324,202 | 3,291,919 | 3,248,841 | 3,291,919 | ||||||
END OF PERIOD BALANCES | ||||||||||||||
Loans | $ | 3,248,841 | 3,364,370 | 3,193,470 | 3,324,202 | 3,291,919 | 3,248,841 | 3,291,919 | ||||||
Securities | $ | 524,127 | 452,259 | 405,349 | 330,426 | 325,663 | 524,127 | 325,663 | ||||||
Other interest-earning assets | $ | 683,638 | 596,855 | 563,174 | 495,308 | 386,711 | 683,638 | 386,711 | ||||||
Total earning assets (before allowance) | $ | 4,456,606 | 4,413,484 | 4,161,993 | 4,149,936 | 4,004,293 | 4,456,606 | 4,004,293 | ||||||
Total assets | $ | 4,757,414 | 4,713,023 | 4,437,344 | 4,420,610 | 4,314,379 | 4,757,414 | 4,314,379 | ||||||
Noninterest-bearing deposits | $ | 1,620,829 | 1,605,471 | 1,433,403 | 1,449,879 | 1,445,620 | 1,620,829 | 1,445,620 | ||||||
Interest-bearing deposits | $ | 2,050,442 | 2,039,491 | 1,978,150 | 1,922,155 | 1,816,660 | 2,050,442 | 1,816,660 | ||||||
Total deposits | $ | 3,671,271 | 3,644,962 | 3,411,553 | 3,372,034 | 3,262,280 | 3,671,271 | 3,262,280 | ||||||
Total borrowed funds | $ | 613,205 | 584,672 | 562,360 | 600,892 | 611,298 | 613,205 | 611,298 | ||||||
Total interest-bearing liabilities | $ | 2,663,647 | 2,624,163 | 2,540,510 | 2,523,047 | 2,427,958 | 2,663,647 | 2,427,958 | ||||||
Shareholders' equity | $ | 451,888 | 441,243 | 441,554 | 431,900 | 425,221 | 451,888 | 425,221 | ||||||
AVERAGE BALANCES | ||||||||||||||
Loans | $ | 3,365,686 | 3,318,281 | 3,268,866 | 3,292,025 | 3,254,985 | 3,324,006 | 3,052,441 | ||||||
Securities | $ | 483,805 | 419,514 | 365,631 | 327,668 | 333,843 | 451,837 | 339,374 | ||||||
Other interest-earning assets | $ | 619,358 | 591,617 | 559,593 | 457,598 | 251,833 | 605,564 | 202,735 | ||||||
Total earning assets (before allowance) | $ | 4,468,849 | 4,329,412 | 4,194,090 | 4,077,291 | 3,840,661 | 4,381,407 | 3,594,550 | ||||||
Total assets | $ | 4,752,858 | 4,578,887 | 4,459,370 | 4,346,624 | 4,119,573 | 4,666,372 | 3,861,179 | ||||||
Noninterest-bearing deposits | $ | 1,619,976 | 1,510,334 | 1,478,616 | 1,454,887 | 1,304,986 | 1,565,458 | 1,114,406 | ||||||
Interest-bearing deposits | $ | 2,074,759 | 2,026,896 | 1,936,069 | 1,863,302 | 1,767,985 | 2,050,959 | 1,746,008 | ||||||
Total deposits | $ | 3,694,735 | 3,537,230 | 3,414,685 | 3,318,189 | 3,072,971 | 3,616,417 | 2,860,414 | ||||||
Total borrowed funds | $ | 594,199 | 576,645 | 588,100 | 583,994 | 607,074 | 585,471 | 562,518 | ||||||
Total interest-bearing liabilities | $ | 2,668,958 | 2,603,541 | 2,524,169 | 2,447,296 | 2,375,059 | 2,636,430 | 2,308,526 | ||||||
Shareholders' equity | $ | 445,930 | 443,548 | 438,171 | 429,865 | 422,230 | 444,761 | 420,921 | ||||||
View original content:https://www.prnewswire.com/news-releases/mercantile-bank-corporation-reports-strong-second-quarter-2021-results-301336877.html
SOURCE Mercantile Bank Corporation
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