Mercantile Bank Corporation Reports Strong Third Quarter 2021 Results
Mercantile Bank Corporation (NASDAQ: MBWM) reported a net income of $15.1 million ($0.95 per diluted share) for Q3 2021, a 40.8% increase from Q3 2020. For the first nine months, net income reached $47.4 million ($2.95 per diluted share), up 57.6% year-over-year. Key highlights include strong growth in core commercial loans, increased noninterest income of $15.6 million, and a healthy capital position. Total assets rose to $4.96 billion, with total deposits increasing 13.4% to $3.87 billion. Mercantile maintains strong asset quality amid economic challenges.
- Net income increased by 40.8% to $15.1 million for Q3 2021.
- Strong growth in core commercial loans by $162 million in Q3.
- Noninterest income rose by 17% to $15.6 million, benefiting from an interest rate swap program.
- Total assets increased to $4.96 billion, up 11.9% year-to-date.
- Total deposits grew to $3.87 billion, up 13.4% from December 2020.
- Net interest margin declined to 2.71% from 2.86% due to excess liquidity and lower yield on securities.
- Yield on average earning assets decreased from 3.45% to 3.13% year-over-year.
- Provision expense remained high at $1.9 million despite lower nonperforming assets.
GRAND RAPIDS, Mich., Oct. 19, 2021 /PRNewswire/ -- Mercantile Bank Corporation (NASDAQ: MBWM) ("Mercantile") reported net income of
"Mercantile's talented and dedicated people, commitment to local decision making, and longstanding investments in technology all contributed to the bank's growth in commercial and residential mortgage loans, earnings, net interest income, and fee income, all while maintaining strong asset quality metrics and operating expense discipline," said Robert B. Kaminski, Jr., President and Chief Executive Officer of Mercantile. "The significant growth in core commercial loans during the quarter, especially when considering the current economic and operating environments, is a noteworthy feat and reflects our commercial lending team's ongoing concerted effort to meet existing customers' credit needs and to foster new relationships. Based on our current loan pipeline, we believe core commercial loan originations will remain robust during the fourth quarter and into 2022."
Third quarter highlights include:
- Strong growth in core commercial loans and residential mortgage loans
- Sustained strength in commercial loan and residential mortgage loan pipelines
- Ongoing strength in asset quality metrics
- Solid earnings and capital position
- Growth in key fee income categories
- Additional growth in local deposits
Operating Results
Total revenue, which consists of net interest income and noninterest income, was
The yield on average earning assets declined from 3.45 percent during the third quarter of 2020 to 3.13 percent during the respective 2021 period due to a change in earning asset mix and a decreased yield on securities. 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 persisted during the remainder of 2020 and first nine months of 2021, negatively impacted both the yield on average earning assets and the net interest margin by 40 basis points to 50 basis points during the third quarter and first nine 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 loan forgiveness activities. The decreased yield on securities mainly depicted lower yields on newly purchased bonds, reflecting the declining interest rate environment, and a reduced level of accelerated discount accretion on called U.S. Government agency bonds.
The cost of funds decreased from 0.59 percent during the third quarter of 2020 to 0.42 percent during the current-year third 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 provision expense of
Noninterest income during the third quarter of 2021 was
Noninterest expense totaled
Mr. Kaminski commented, "The growth in key fee income categories reflects our continuing efforts to augment our noninterest income revenue streams, which represented 33 percent of operating revenue in the third quarter. Our interest rate risk swap program continues to be well received by commercial loan customers, and the ongoing success in developing new commercial and industrial loan relationships provides us with opportunities to cross sell treasury management products and services, which serve as another contributor to fee income. Growth in residential mortgage loan purchase originations has largely offset the negative impact of an expected decline in refinance activity on mortgage banking income. We remain committed to growing in a cost-conscious manner and are continually reviewing overhead categories in an effort to improve efficiency where feasible."
Balance Sheet
As of September 30, 2021, total assets were
Interest-earning deposits increased
Ray Reitsma, President of Mercantile Bank of Michigan, noted, "We are very pleased with the strong levels of core commercial loan and residential mortgage loan growth during the third quarter. The growth in the core commercial loan portfolio, which was achieved in a prudent manner with an unwavering emphasis on sound underwriting and risk-based pricing, reflects our commercial lending team's continuing focus on meeting the needs of our existing customers and successful client acquisition efforts. A majority of the core commercial loan growth was in the commercial and industrial loan category, which typically generates additional local deposits and affords us the opportunity to cross sell treasury management products and services. We are also pleased with the sustained strength of our commercial loan and residential 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 September 30, 2021, a level that has remained relatively consistent and in line with internal expectations.
Total deposits at September 30, 2021, were
Asset Quality
Nonperforming assets totaled
Mr. Reitsma commented, "As evidenced by the continuing low levels of past due loans, gross loan charge-offs, and nonperforming assets, our asset quality metrics have remained strong during the COVID-19 pandemic. The sustained strength in asset quality depicts our ongoing focus on proper underwriting and our commercial borrowers' business acumen and success in addressing pandemic-related challenges, including the rising costs and disruption posed by supply chain shortages and a tight labor market."
Capital Position
Shareholders' equity totaled
As part of
Mr. Kaminski concluded, "We are pleased that our ongoing financial strength has allowed us to continue our regular quarterly cash dividend program and provide shareholders with meaningful cash returns on their investments. Our business model, which focuses on mutually beneficial relationship building, exceptional customer service, local decision making, and market-leading products and services, has proven effective in retaining existing clients and attracting new customers, and we believe we are well positioned to produce strong operating results in future periods and remain a consistent high performer that delivers steady and profitable growth."
Investor Presentation
Mercantile has prepared presentation materials that management intends to use during its previously announced third quarter 2021 conference call on Tuesday, October 19, 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, which may be modified to address new developments, as the company carefully monitors the recent surge in cases. 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; 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; our participation in the Paycheck Protection Program administered by the Small Business Administration; 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; 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 | ||||||
Third Quarter 2021 Results | ||||||
MERCANTILE BANK CORPORATION | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(Unaudited) | ||||||
SEPTEMBER 30, | DECEMBER 31, | SEPTEMBER 30, | ||||
2021 | 2020 | 2020 | ||||
ASSETS | ||||||
Cash and due from banks | $ | 83,804,000 | $ | 62,832,000 | $ | 59,283,000 |
Interest-earning deposits | 741,557,000 | 563,174,000 | 495,308,000 | |||
Total cash and cash equivalents | 825,361,000 | 626,006,000 | 554,591,000 | |||
Securities available for sale | 559,564,000 | 387,347,000 | 312,424,000 | |||
Federal Home Loan Bank stock | 18,002,000 | 18,002,000 | 18,002,000 | |||
Loans | 3,313,709,000 | 3,193,470,000 | 3,324,202,000 | |||
Allowance for loan losses | (37,423,000) | (37,967,000) | (35,572,000) | |||
Loans, net | 3,276,286,000 | 3,155,503,000 | 3,288,630,000 | |||
Premises and equipment, net | 57,465,000 | 58,959,000 | 60,446,000 | |||
Bank owned life insurance | 72,963,000 | 72,131,000 | 71,170,000 | |||
Goodwill | 49,473,000 | 49,473,000 | 49,473,000 | |||
Core deposit intangible, net | 1,589,000 | 2,436,000 | 2,754,000 | |||
Mortgage loans held for sale | 47,247,000 | 22,888,000 | 26,342,000 | |||
Other assets | 56,462,000 | 44,599,000 | 36,778,000 | |||
Total assets | $ | 4,964,412,000 | $ | 4,437,344,000 | $ | 4,420,610,000 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Deposits: | ||||||
Noninterest-bearing | $ | 1,647,380,000 | $ | 1,433,403,000 | $ | 1,449,879,000 |
Interest-bearing | 2,221,611,000 | 1,978,150,000 | 1,922,155,000 | |||
Total deposits | 3,868,991,000 | 3,411,553,000 | 3,372,034,000 | |||
Securities sold under agreements to repurchase | 175,850,000 | 118,365,000 | 157,017,000 | |||
Federal Home Loan Bank advances | 394,000,000 | 394,000,000 | 394,000,000 | |||
Subordinated debentures | 48,074,000 | 47,563,000 | 47,392,000 | |||
Accrued interest and other liabilities | 25,219,000 | 24,309,000 | 18,267,000 | |||
Total liabilities | 4,512,134,000 | 3,995,790,000 | 3,988,710,000 | |||
SHAREHOLDERS' EQUITY | ||||||
Common stock | 285,033,000 | 302,029,000 | 301,896,000 | |||
Retained earnings | 167,541,000 | 134,039,000 | 124,451,000 | |||
Accumulated other comprehensive income/(loss) | (296,000) | 5,486,000 | 5,553,000 | |||
Total shareholders' equity | 452,278,000 | 441,554,000 | 431,900,000 | |||
Total liabilities and shareholders' equity | $ | 4,964,412,000 | $ | 4,437,344,000 | $ | 4,420,610,000 |
Mercantile Bank Corporation | |||||||||||||
Third Quarter 2021 Results | |||||||||||||
MERCANTILE BANK CORPORATION | |||||||||||||
CONSOLIDATED REPORTS OF INCOME | |||||||||||||
(Unaudited) | |||||||||||||
THREE MONTHS ENDED | THREE MONTHS ENDED | NINE MONTHS ENDED | NINE MONTHS ENDED | ||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||
INTEREST INCOME | |||||||||||||
Loans, including fees | $ | 33,656,000 | $ | 33,664,000 | $ | 100,430,000 | $ | 101,428,000 | |||||
Investment securities | 1,941,000 | 1,788,000 | 5,375,000 | 8,554,000 | |||||||||
Other interest-earning assets | 291,000 | 142,000 | 642,000 | 711,000 | |||||||||
Total interest income | 35,888,000 | 35,594,000 | 106,447,000 | 110,693,000 | |||||||||
INTEREST EXPENSE | |||||||||||||
Deposits | 2,184,000 | 3,466,000 | 7,247,000 | 11,808,000 | |||||||||
Short-term borrowings | 46,000 | 38,000 | 122,000 | 132,000 | |||||||||
Federal Home Loan Bank advances | 2,072,000 | 2,072,000 | 6,149,000 | 6,499,000 | |||||||||
Other borrowed money | 462,000 | 509,000 | 1,401,000 | 1,857,000 | |||||||||
Total interest expense | 4,764,000 | 6,085,000 | 14,919,000 | 20,296,000 | |||||||||
Net interest income | 31,124,000 | 29,509,000 | 91,528,000 | 90,397,000 | |||||||||
Provision for loan losses | 1,900,000 | 3,200,000 | (900,000) | 11,550,000 | |||||||||
Net interest income after | |||||||||||||
provision for loan losses | 29,224,000 | 26,309,000 | 92,428,000 | 78,847,000 | |||||||||
NONINTEREST INCOME | |||||||||||||
Service charges on accounts | 1,324,000 | 1,135,000 | 3,687,000 | 3,401,000 | |||||||||
Mortgage banking income | 6,554,000 | 9,479,000 | 23,049,000 | 19,746,000 | |||||||||
Credit and debit card income | 1,947,000 | 1,636,000 | 5,545,000 | 4,371,000 | |||||||||
Interest rate swap income | 3,938,000 | 0 | 6,086,000 | 0 | |||||||||
Payroll services | 412,000 | 399,000 | 1,374,000 | 1,346,000 | |||||||||
Earnings on bank owned life insurance | 298,000 | 290,000 | 872,000 | 933,000 | |||||||||
Gain on sale of branch | 0 | 0 | 1,058,000 | 0 | |||||||||
Other income | 1,095,000 | 368,000 | 1,916,000 | 1,042,000 | |||||||||
Total noninterest income | 15,568,000 | 13,307,000 | 43,587,000 | 30,839,000 | |||||||||
NONINTEREST EXPENSE | |||||||||||||
Salaries and benefits | 15,975,000 | 16,734,000 | 47,255,000 | 44,388,000 | |||||||||
Occupancy | 2,030,000 | 2,023,000 | 6,021,000 | 5,944,000 | |||||||||
Furniture and equipment | 929,000 | 871,000 | 2,719,000 | 2,500,000 | |||||||||
Data processing costs | 2,746,000 | 2,676,000 | 8,138,000 | 7,793,000 | |||||||||
Other expense | 4,530,000 | 4,119,000 | 13,386,000 | 11,954,000 | |||||||||
Total noninterest expense | 26,210,000 | 26,423,000 | 77,519,000 | 72,579,000 | |||||||||
Income before federal income | |||||||||||||
tax expense | 18,582,000 | 13,193,000 | 58,496,000 | 37,107,000 | |||||||||
Federal income tax expense | 3,531,000 | 2,507,000 | 11,114,000 | 7,051,000 | |||||||||
Net Income | $ | 15,051,000 | $ | 10,686,000 | $ | 47,382,000 | $ | 30,056,000 | |||||
Basic earnings per share | |||||||||||||
Diluted earnings per share | |||||||||||||
Average basic shares outstanding | 15,859,955 | 16,233,196 | 16,084,806 | 16,265,208 | |||||||||
Average diluted shares outstanding | 15,860,314 | 16,233,666 | 16,085,274 | 16,265,986 | |||||||||
Mercantile Bank Corporation | ||||||||||||||
Third Quarter 2021 Results | ||||||||||||||
MERCANTILE BANK CORPORATION | ||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS | ||||||||||||||
(Unaudited) | ||||||||||||||
Quarterly | Year-To-Date | |||||||||||||
(dollars in thousands except per share data) | 2021 | 2021 | 2021 | 2020 | 2020 | |||||||||
3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2021 | 2020 | ||||||||
EARNINGS | ||||||||||||||
Net interest income | $ | 31,124 | 30,871 | 29,533 | 31,849 | 29,509 | 91,528 | 90,397 | ||||||
Provision for loan losses | $ | 1,900 | (3,100) | 300 | 2,500 | 3,200 | (900) | 11,550 | ||||||
Noninterest income | $ | 15,568 | 14,556 | 13,463 | 14,333 | 13,307 | 43,587 | 30,839 | ||||||
Noninterest expense | $ | 26,210 | 26,192 | 25,117 | 25,941 | 26,423 | 77,519 | 72,579 | ||||||
Net income before federal income | ||||||||||||||
tax expense | $ | 18,582 | 22,335 | 17,579 | 17,741 | 13,193 | 58,496 | 37,107 | ||||||
Net income | $ | 15,051 | 18,091 | 14,239 | 14,082 | 10,686 | 47,382 | 30,056 | ||||||
Basic earnings per share | $ | 0.95 | 1.12 | 0.87 | 0.87 | 0.66 | 2.95 | 1.85 | ||||||
Diluted earnings per share | $ | 0.95 | 1.12 | 0.87 | 0.87 | 0.66 | 2.95 | 1.85 | ||||||
Average basic shares outstanding | 15,859,955 | 16,116,070 | 16,283,044 | 16,279,052 | 16,233,196 | 16,084,806 | 16,265,208 | |||||||
Average diluted shares outstanding | 15,860,314 | 16,116,666 | 16,283,490 | 16,279,243 | 16,233,666 | 16,085,274 | 16,265,986 | |||||||
PERFORMANCE RATIOS | ||||||||||||||
Return on average assets | ||||||||||||||
Return on average equity | ||||||||||||||
Net interest margin (fully tax-equivalent) | ||||||||||||||
Efficiency ratio | ||||||||||||||
Full-time equivalent employees | 629 | 634 | 621 | 621 | 618 | 629 | 618 | |||||||
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 | $ | 48 | 54 | 51 | 158 | 332 | 153 | 786 | ||||||
Trust preferred - increase interest expense | $ | 171 | 171 | 171 | 171 | 171 | 513 | 513 | ||||||
Core deposit intangible - increase overhead | $ | 238 | 291 | 318 | 318 | 318 | 847 | 1,086 | ||||||
MORTGAGE BANKING ACTIVITY | ||||||||||||||
Total mortgage loans originated | $ | 259,512 | 237,299 | 245,200 | 218,904 | 237,195 | 742,011 | 645,540 | ||||||
Purchase mortgage loans originated | $ | 143,635 | 144,476 | 81,529 | 99,490 | 93,068 | 369,640 | 197,621 | ||||||
Refinance mortgage loans originated | $ | 115,877 | 92,823 | 163,671 | 119,414 | 144,127 | 372,371 | 447,919 | ||||||
Total saleable mortgage loans | $ | 177,837 | 140,497 | 195,655 | 159,942 | 191,318 | 513,989 | 512,310 | ||||||
Income on sale of mortgage loans | $ | 6,659 | 7,690 | 9,182 | 9,476 | 10,199 | 23,531 | 20,045 | ||||||
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 | $ | 448,010 | 445,410 | 437,567 | 430,146 | 420,225 | 448,010 | 420,225 | ||||||
Tier 1 plus tier 2 capital | $ | 484,594 | 481,324 | 476,462 | 468,113 | 455,797 | 484,594 | 455,797 | ||||||
Total risk-weighted assets | $ | 3,884,999 | 3,677,180 | 3,526,161 | 3,391,563 | 3,298,047 | 3,884,999 | 3,298,047 | ||||||
Book value per common share | $ | 28.78 | 28.23 | 27.21 | 27.04 | 26.59 | 28.78 | 26.59 | ||||||
Tangible book value per common share | $ | 25.53 | 25.03 | 24.02 | 23.86 | 23.37 | 25.53 | 23.37 | ||||||
Cash dividend per common share | $ | 0.30 | 0.29 | 0.29 | 0.28 | 0.28 | 0.88 | 0.84 | ||||||
ASSET QUALITY | ||||||||||||||
Gross loan charge-offs | $ | 744 | 68 | 53 | 340 | 124 | 865 | 499 | ||||||
Recoveries | $ | 354 | 386 | 481 | 234 | 250 | 1,221 | 632 | ||||||
Net loan charge-offs (recoveries) | $ | 390 | (318) | (428) | 106 | (126) | (356) | (133) | ||||||
Net loan charge-offs to average loans | ( | ( | ( | ( | ( | |||||||||
Allowance for loan losses | $ | 37,423 | 35,913 | 38,695 | 37,967 | 35,572 | 37,423 | 35,572 | ||||||
Allowance to loans | ||||||||||||||
Allowance to loans excluding PPP loans | ||||||||||||||
Nonperforming loans | $ | 2,766 | 2,746 | 2,793 | 3,384 | 4,141 | 2,766 | 4,141 | ||||||
Other real estate/repossessed assets | $ | 111 | 404 | 374 | 701 | 512 | 111 | 512 | ||||||
Nonperforming loans to total loans | ||||||||||||||
Nonperforming assets to total assets | ||||||||||||||
NONPERFORMING ASSETS - COMPOSITION | ||||||||||||||
Residential real estate: | ||||||||||||||
Land development | $ | 33 | 34 | 34 | 35 | 36 | 33 | 36 | ||||||
Construction | $ | 0 | 0 | 0 | 0 | 198 | 0 | 198 | ||||||
Owner occupied / rental | $ | 2,063 | 2,137 | 2,305 | 2,607 | 2,597 | 2,063 | 2,597 | ||||||
Commercial real estate: | ||||||||||||||
Land development | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Construction | $ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Owner occupied | $ | 100 | 363 | 646 | 1,232 | 1,576 | 100 | 1,576 | ||||||
Non-owner occupied | $ | 0 | 0 | 0 | 22 | 23 | 0 | 23 | ||||||
Non-real estate: | ||||||||||||||
Commercial assets | $ | 673 | 606 | 169 | 172 | 198 | 673 | 198 | ||||||
Consumer assets | $ | 8 | 10 | 13 | 17 | 25 | 8 | 25 | ||||||
Total nonperforming assets | 2,877 | 3,150 | 3,167 | 4,085 | 4,653 | 2,877 | 4,653 | |||||||
NONPERFORMING ASSETS - RECON | ||||||||||||||
Beginning balance | $ | 3,150 | 3,167 | 4,085 | 4,653 | 3,410 | 4,085 | 2,736 | ||||||
Additions | $ | 361 | 522 | 116 | 972 | 1,615 | 999 | 3,148 | ||||||
Return to performing status | $ | (50) | 0 | (115) | 0 | (72) | (165) | (105) | ||||||
Principal payments | $ | (291) | (484) | (559) | (1,064) | (249) | (1,334) | (637) | ||||||
Sale proceeds | $ | (209) | 0 | (77) | (245) | 0 | (286) | (241) | ||||||
Loan charge-offs | $ | 0 | (55) | (33) | (231) | (51) | (88) | (224) | ||||||
Valuation write-downs | $ | (84) | 0 | (250) | 0 | 0 | (334) | (24) | ||||||
Ending balance | $ | 2,877 | 3,150 | 3,167 | 4,085 | 4,653 | 2,877 | 4,653 | ||||||
LOAN PORTFOLIO COMPOSITION | ||||||||||||||
Commercial: | ||||||||||||||
Commercial & industrial | $ | 1,074,394 | 1,103,807 | 1,284,507 | 1,145,423 | 1,321,419 | 1,074,394 | 1,321,419 | ||||||
Land development & construction | $ | 38,380 | 43,111 | 58,738 | 55,055 | 50,941 | 38,380 | 50,941 | ||||||
Owner occupied comm'l R/E | $ | 551,762 | 550,504 | 544,342 | 529,953 | 549,364 | 551,762 | 549,364 | ||||||
Non-owner occupied comm'l R/E | $ | 998,697 | 950,993 | 932,334 | 917,436 | 878,897 | 998,697 | 878,897 | ||||||
Multi-family & residential rental | $ | 179,126 | 161,894 | 147,294 | 146,095 | 137,740 | 179,126 | 137,740 | ||||||
Total commercial | $ | 2,842,359 | 2,810,309 | 2,967,215 | 2,793,962 | 2,938,361 | 2,842,359 | 2,938,361 | ||||||
Retail: | ||||||||||||||
1-4 family mortgages | $ | 411,618 | 380,292 | 337,844 | 337,888 | 322,118 | 411,618 | 322,118 | ||||||
Home equity & other consumer | $ | 59,732 | 58,240 | 59,311 | 61,620 | 63,723 | 59,732 | 63,723 | ||||||
Total retail | $ | 471,350 | 438,532 | 397,155 | 399,508 | 385,841 | 471,350 | 385,841 | ||||||
Total loans | $ | 3,313,709 | 3,248,841 | 3,364,370 | 3,193,470 | 3,324,202 | 3,313,709 | 3,324,202 | ||||||
END OF PERIOD BALANCES | ||||||||||||||
Loans | $ | 3,313,709 | 3,248,841 | 3,364,370 | 3,193,470 | 3,324,202 | 3,313,709 | 3,324,202 | ||||||
Securities | $ | 577,566 | 524,127 | 452,259 | 405,349 | 330,426 | 577,566 | 330,426 | ||||||
Other interest-earning assets | $ | 741,557 | 683,638 | 596,855 | 563,174 | 495,308 | 741,557 | 495,308 | ||||||
Total earning assets (before allowance) | $ | 4,632,832 | 4,456,606 | 4,413,484 | 4,161,993 | 4,149,936 | 4,632,832 | 4,149,936 | ||||||
Total assets | $ | 4,964,412 | 4,757,414 | 4,713,023 | 4,437,344 | 4,420,610 | 4,964,412 | 4,420,610 | ||||||
Noninterest-bearing deposits | $ | 1,647,380 | 1,620,829 | 1,605,471 | 1,433,403 | 1,449,879 | 1,647,380 | 1,449,879 | ||||||
Interest-bearing deposits | $ | 2,221,611 | 2,050,442 | 2,039,491 | 1,978,150 | 1,922,155 | 2,221,611 | 1,922,155 | ||||||
Total deposits | $ | 3,868,991 | 3,671,271 | 3,644,962 | 3,411,553 | 3,372,034 | 3,868,991 | 3,372,034 | ||||||
Total borrowed funds | $ | 619,441 | 613,205 | 584,672 | 562,360 | 600,892 | 619,441 | 600,892 | ||||||
Total interest-bearing liabilities | $ | 2,841,052 | 2,663,647 | 2,624,163 | 2,540,510 | 2,523,047 | 2,841,052 | 2,523,047 | ||||||
Shareholders' equity | $ | 452,278 | 451,888 | 441,243 | 441,554 | 431,900 | 452,278 | 431,900 | ||||||
AVERAGE BALANCES | ||||||||||||||
Loans | $ | 3,276,863 | 3,365,686 | 3,318,281 | 3,268,866 | 3,292,025 | 3,308,119 | 3,132,885 | ||||||
Securities | $ | 547,336 | 483,805 | 419,514 | 365,631 | 327,668 | 484,020 | 335,443 | ||||||
Other interest-earning assets | $ | 733,801 | 619,358 | 591,617 | 559,593 | 457,598 | 648,780 | 288,310 | ||||||
Total earning assets (before allowance) | $ | 4,558,000 | 4,468,849 | 4,329,412 | 4,194,090 | 4,077,291 | 4,440,919 | 3,756,638 | ||||||
Total assets | $ | 4,856,611 | 4,752,858 | 4,578,887 | 4,459,370 | 4,346,624 | 4,730,482 | 4,024,175 | ||||||
Noninterest-bearing deposits | $ | 1,641,158 | 1,619,976 | 1,510,334 | 1,478,616 | 1,454,887 | 1,590,969 | 1,228,729 | ||||||
Interest-bearing deposits | $ | 2,125,920 | 2,074,759 | 2,026,896 | 1,936,069 | 1,863,302 | 2,076,221 | 1,785,391 | ||||||
Total deposits | $ | 3,767,078 | 3,694,735 | 3,537,230 | 3,414,685 | 3,318,189 | 3,667,190 | 3,014,120 | ||||||
Total borrowed funds | $ | 614,061 | 594,199 | 576,645 | 588,100 | 583,994 | 595,105 | 569,729 | ||||||
Total interest-bearing liabilities | $ | 2,739,981 | 2,668,958 | 2,603,541 | 2,524,169 | 2,447,296 | 2,671,326 | 2,355,120 | ||||||
Shareholders' equity | $ | 455,902 | 445,930 | 443,548 | 438,171 | 429,865 | 448,516 | 423,924 | ||||||
View original content:https://www.prnewswire.com/news-releases/mercantile-bank-corporation-reports-strong-third-quarter-2021-results-301402649.html
SOURCE Mercantile Bank Corporation
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