Press Release

Mercantile Bank Corporation Reports Strong Third Quarter 2019 Results

Continued strength in core profitability and increased loan originations highlight quarter

Company Release - 10/15/2019 6:01 AM ET

GRAND RAPIDS, Mich., Oct. 15, 2019 /PRNewswire/ -- Mercantile Bank Corporation (NASDAQ: MBWM) ("Mercantile") reported net income of $12.6 million, or $0.77 per diluted share, for the third quarter of 2019, compared with net income of $10.1 million, or $0.61 per diluted share, for the respective prior-year period. Net income during the first nine months of 2019 totaled $36.1 million, or $2.20 per diluted share, compared to $30.5 million, or $1.83 per diluted share, during the first nine months of 2018.

Bank owned life insurance claims and a gain on the sale of a former branch facility increased reported net income during the first nine months of 2019 by approximately $3.1 million, or $0.19 per diluted share. Interest income related to purchased loan accounting entries increased net income during the first nine months of 2019 by $0.9 million, or $0.05 per diluted share, and net income during the first nine months of 2018 by $2.7 million, or $0.16 per diluted share. Excluding the impacts of these transactions, diluted earnings per share increased $0.29, or 17.4 percent, during the first nine months of 2019 compared to the respective 2018 period.

"We are very pleased to once again report a quarter of robust operating performance, representing a continuation of the financial trends demonstrated during the first six months of the year," said Robert B. Kaminski, Jr., President and Chief Executive Officer of Mercantile. "Our sustained strength in core profitability, solid capital position, and healthy commercial loan and residential mortgage loan pipelines give us confidence that the sound financial performance exhibited during the first three quarters of the year will continue in the fourth quarter and beyond."

Third quarter highlights include:

  • Strong earnings performance and capital position
  • Increased fee income
  • Controlled overhead costs
  • Strong asset quality
  • Annualized net loan growth of approximately 7 percent
  • New commercial term loan originations of $153 million
  • Continued strength in commercial and residential loan pipelines

Operating Results

Total revenue, which consists of net interest income and noninterest income, was $38.3 million during the third quarter of 2019, up $3.7 million, or 10.8 percent, from the prior-year third quarter. Reflecting a higher level of earning assets, net interest income of $31.6 million during the third quarter of 2019 was up $1.8 million, or 5.9 percent, from the third quarter of 2018.

The net interest margin was 3.71 percent in the third quarter of 2019. The yield on average earning assets equaled 4.73 percent during the third quarter of 2019, up from 4.60 percent during the respective 2018 period mainly due to an increased yield on commercial loans. The improved yield on commercial loans primarily reflected the positive impact of higher interest rates on variable-rate commercial loans stemming from the Federal Open Market Committee's ("FOMC") raising of the targeted federal funds rate by 25 basis points in both September and December 2018. The impact of these rate increases more than offset the negative impact of lower interest rates on variable-rate commercial loans resulting from the FOMC's lowering of the targeted federal funds rate by 25 basis points in both July and September 2019. The cost of funds equaled 1.02 percent during the third quarter of 2019, up from 0.73 percent during the prior-year third quarter mainly due to an increased cost of time deposits and a change in funding mix. Increased reliance on more costly wholesale funds during the twelve months ended September 30, 2019, most of which occurred in the fourth quarter of 2018 and January 2019, was necessitated by various funding requirements, including ongoing loan growth and seasonal deposit withdrawals by certain business customers for bonus and tax payments.

Net interest income and the net interest margin during the third quarters of 2019 and 2018, and the first nine months of the current year and prior year, were affected by purchase accounting accretion and amortization associated with fair value measurements. Increases in interest income on loans totaling $0.3 million and $0.4 million were recorded during the third quarters of 2019 and 2018, respectively, and increases of $1.1 million and $3.4 million were recorded during the first nine months of 2019 and 2018, respectively. Purchased loan accretion amounts vary from period to period as a result of periodic cash flow re-estimations, loan payoffs, and payment performance.

Mercantile recorded a $0.7 million provision for loan losses during the third quarter of 2019 compared to a $0.4 million provision during the respective 2018 period. The provision expense recorded during both periods mainly reflected ongoing net loan growth.

Noninterest income during the third quarter of 2019 was $6.7 million, up $2.0 million, or nearly 42 percent, from the prior-year third quarter. The improved level of noninterest income primarily reflected increased mortgage banking activity income stemming from the success of continuing strategic initiatives designed to increase market presence, along with a higher level of refinance activity resulting from a recent decrease in residential mortgage loan interest rates. Increased credit and debit card income, service charges on accounts, and payroll processing fees also contributed to the higher level of noninterest income.

Noninterest expense totaled $22.0 million during the third quarter of 2019, up $0.4 million, or 1.7 percent, from the respective 2018 period. The higher level of expense primarily resulted from increased salary costs, mainly reflecting annual employee merit pay increases, higher mortgage loan originator commissions, and increased stock-based compensation expense.

"We are extremely pleased with the growth in certain key fee income categories, most notably in mortgage banking activity income," continued Mr. Kaminski. "The significant increase in mortgage banking activity income reflects the success of ongoing strategic initiatives implemented across the organization to boost market penetration, a higher percentage of originated residential mortgage loans being sold, and enhanced refinance activity stemming from a recent decline in residential mortgage loan interest rates. We remain committed to controlling our overhead costs, in large part reflecting the administration of a sustainable business model."

Balance Sheet

As of September 30, 2019, total assets were $3.71 billion, up $346 million, or 10.3 percent, from December 31, 2018. Total loans and interest-earning deposits increased $180 million and $134 million, respectively, over the same time period. During the twelve months ended September 30, 2019, total loans were up $236 million, or 8.7 percent. Approximately $153 million and $412 million in commercial term loans to new and existing borrowers were originated during the third quarter and first nine months of 2019, respectively, as ongoing sales and relationship-building efforts resulted in increased lending opportunities. As of September 30, 2019, unfunded commitments on commercial construction and development loans totaled approximately $91 million, which are expected to be largely funded over the next 12 to 18 months. The growth in interest-earning deposits mainly stemmed from certain deposit-gathering initiatives and an increase in wholesale funds.

Ray Reitsma, President of Mercantile Bank of Michigan, noted, "We are pleased with the increase in net loans during the current quarter, which equated to an annualized growth rate of about 7 percent. The net loan growth realized during the quarter reflected an increase in the commercial portfolio, most notably in the owner-occupied commercial real estate and non-owner occupied commercial real estate segments, along with growth in the residential mortgage loan portfolio. New commercial term loan originations remained strong during the quarter, representing the highest quarterly level since the second quarter of 2016. As evidenced by the solid loan growth during the quarter, our lending team continues to successfully identify new customer relationships and meet the needs of our existing customer base. We have not wavered from our commitment to grow the loan portfolio in a disciplined manner, with a continuing focus on responsible loan pricing and sound asset quality. We remain committed to maintaining the combined commercial and industrial loan and owner-occupied commercial real estate loan portfolio segments at a minimum percentage of total commercial loans. Our commercial loan and residential mortgage loan pipelines remain strong."

As of September 30, 2019, commercial and industrial loans and owner-occupied commercial real estate loans combined represented approximately 58 percent of total commercial loans, a level that has remained relatively consistent and in line with internal expectations.

Total deposits at September 30, 2019, were $2.77 billion, up $303 million from December 31, 2018. Local deposits and brokered deposits were up $263 million and $40.2 million, respectively, during the first nine months of 2019. The growth in local deposits was mainly driven by a special time deposit campaign that was introduced mid first quarter and ended in early April, along with increases in business money market accounts and noninterest-bearing checking accounts. The growth in noninterest-bearing checking accounts primarily reflected new commercial loan relationships. Wholesale funds were $517 million, or approximately 16 percent of total funds, as of September 30, 2019, compared to $474 million, or approximately 16 percent of total funds, as of December 31, 2018.

Asset Quality

Nonperforming assets at September 30, 2019, were $2.9 million, or 0.1 percent of total assets, compared to $5.0 million, or 0.2 percent of total assets, at December 31, 2018. The level of past due loans remains nominal, and loan relationships on the internal watch list have remained relatively consistent in number and dollar volume. During the third quarter of 2019, loan charge-offs totaled $0.5 million while recoveries of prior period loan charge-offs equaled $0.2 million, providing for net loan charge-offs of $0.3 million, or an annualized 0.05 percent of average total loans. During the first nine months of 2019, loan charge-offs totaled $0.8 million while recoveries of prior period loan charge-offs equaled $0.4 million, providing for net loan charge-offs of $0.4 million, or an annualized 0.02 percent of average total loans.

Capital Position

Shareholders' equity totaled $407 million as of September 30, 2019, an increase of $32.0 million from year-end 2018. The Bank's capital position remains above "well-capitalized" with a total risk-based capital ratio of 12.5 percent as of September 30, 2019, compared to 12.3 percent at December 31, 2018. At September 30, 2019, the Bank had approximately $84 million in excess of the 10.0 percent minimum regulatory threshold required to be considered a "well-capitalized" institution. Mercantile reported 16,332,660 total shares outstanding at September 30, 2019.

As part of a $20 million common stock repurchase program announced in May 2019 and instituted in conjunction with the completion of its existing program that was introduced in January 2015 and later expanded in April 2016, Mercantile repurchased approximately 112,000 shares for $3.5 million, or a weighted average all-in cost per share of $31.36, during the third quarter of 2019. During the period of January 2015 through September 2019, Mercantile repurchased approximately 1,390,000 shares for $32.6 million, or a weighted average all-in cost per share of $23.47, under the original and new programs on a combined basis.

Mr. Kaminski concluded, "As a result of our strong financial performance during the first three quarters of 2019, we are well positioned to meet our profitability and growth objectives for the year. The cash dividend program, which includes providing shareholders with a competitive dividend yield on a consistent basis, furthers our commitment to enhancing total shareholder value. We have been able to successfully gain new clients and retain existing customers through our market-leading products and services as well as an emphasis on developing mutually-beneficial relationships. We are excited about the opportunities we believe are available to us to expand our presence in our markets, and we are confident that the demonstrated solid operating performance during the first nine months of the year will continue during the fourth quarter and subsequent periods."

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 $3.7 billion and operates 46 banking offices. Mercantile Bank Corporation's common stock is listed on the NASDAQ Global Select Market under the symbol "MBWM."

Forward-Looking Statements

This news release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that 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; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulation or actions by bank regulators; changes in tax laws; changes in prices, levies, and assessments; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; changes in the national and local economies; and other factors, including 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.

FOR FURTHER INFORMATION:



Robert B. Kaminski, Jr.

Charles Christmas


President & CEO

Executive Vice President & CFO


616-726-1502

616-726-1202


rkaminski@mercbank.com

cchristmas@mercbank.com

 

Mercantile Bank Corporation







Third Quarter 2019 Results







MERCANTILE BANK CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)










SEPTEMBER 30,


DECEMBER 31,


SEPTEMBER 30,



2019


2018


2018

ASSETS







  Cash and due from banks

$

84,275,000

$

64,872,000

$

51,824,000

  Interest-earning deposits


144,263,000


10,482,000


28,193,000

    Total cash and cash equivalents


228,538,000


75,354,000


80,017,000








  Securities available for sale


345,533,000


337,366,000


326,531,000

  Federal Home Loan Bank stock


18,002,000


16,022,000


11,072,000








  Loans


2,933,013,000


2,753,085,000


2,697,417,000

  Allowance for loan losses


(24,414,000)


(22,380,000)


(21,692,000)

    Loans, net


2,908,599,000


2,730,705,000


2,675,725,000








  Premises and equipment, net


54,585,000


48,321,000


48,104,000

  Bank owned life insurance


67,993,000


69,647,000


69,628,000

  Goodwill


49,473,000


49,473,000


49,473,000

  Core deposit intangible, net


4,237,000


5,561,000


6,038,000

  Other assets


33,420,000


31,458,000


33,518,000








    Total assets

$

3,710,380,000

$

3,363,907,000

$

3,300,106,000















LIABILITIES AND SHAREHOLDERS' EQUITY







  Deposits:







    Noninterest-bearing

$

967,189,000

$

889,784,000

$

879,442,000

  Interest-bearing


1,799,902,000


1,573,924,000


1,629,368,000

    Total deposits


2,767,091,000


2,463,708,000


2,508,810,000








  Securities sold under agreements to repurchase


103,990,000


103,519,000


112,378,000

  Federal Home Loan Bank advances


364,000,000


350,000,000


240,000,000

  Subordinated debentures


46,710,000


46,199,000


46,029,000

  Accrued interest and other liabilities


21,389,000


25,232,000


13,424,000

      Total liabilities


3,303,180,000


2,988,658,000


2,920,641,000








SHAREHOLDERS' EQUITY







  Common stock


304,065,000


308,005,000


312,544,000

  Retained earnings


98,876,000


75,483,000


80,275,000

  Accumulated other comprehensive 
   income/(loss)


4,259,000


(8,239,000)


(13,354,000)

    Total shareholders' equity


407,200,000


375,249,000


379,465,000








    Total liabilities and shareholders' equity

$

3,710,380,000

$

3,363,907,000

$

3,300,106,000

 

 

Mercantile Bank Corporation












Third Quarter 2019 Results












MERCANTILE BANK CORPORATION

CONSOLIDATED REPORTS OF INCOME

(Unaudited)
















THREE MONTHS ENDED


THREE MONTHS ENDED

NINE MONTHS ENDED

NINE MONTHS ENDED


September 30, 2019


September 30, 2018

September 30, 2019

September 30, 2018

INTEREST INCOME














  Loans, including fees

$

37,005,000



$

32,918,000


$

109,559,000


$

97,087,000


  Investment securities


2,660,000




2,255,000



7,587,000



6,628,000


  Other interest-earning assets


651,000




313,000



1,627,000



1,071,000


    Total interest income


40,316,000




35,486,000



118,773,000



104,786,000
















INTEREST EXPENSE














  Deposits


5,573,000




3,574,000



15,906,000



9,921,000


  Short-term borrowings


71,000




63,000



244,000



181,000


  Federal Home Loan Bank advances


2,257,000




1,201,000



6,751,000



3,134,000


  Other borrowed money


810,000




808,000



2,506,000



2,286,000


    Total interest expense


8,711,000




5,646,000



25,407,000



15,522,000
















    Net interest income


31,605,000




29,840,000



93,366,000



89,264,000
















Provision for loan losses


700,000




400,000



2,450,000



1,100,000
















    Net interest income after














provision for loan losses


30,905,000




29,440,000



90,916,000



88,164,000
















NONINTEREST INCOME














  Service charges on accounts


1,185,000




1,127,000



3,406,000



3,259,000


  Credit and debit card income


1,547,000




1,378,000



4,397,000



3,955,000


  Mortgage banking income


2,889,000




1,235,000



5,291,000



3,115,000


  Payroll services


367,000




328,000



1,227,000



1,128,000


  Earnings on bank owned life insurance


330,000




318,000



3,567,000



969,000


  Other income


358,000




322,000



1,755,000



1,213,000


    Total noninterest income


6,676,000




4,708,000



19,643,000



13,639,000
















NONINTEREST EXPENSE














  Salaries and benefits


13,680,000




12,932,000



39,982,000



38,027,000


  Occupancy


1,697,000




1,648,000



5,089,000



5,049,000


  Furniture and equipment


629,000




659,000



1,885,000



1,789,000


  Data processing costs


2,342,000




2,150,000



6,854,000



6,415,000


  Other expense


3,679,000




4,261,000



12,134,000



12,931,000


    Total noninterest expense


22,027,000




21,650,000



65,944,000



64,211,000
















    Income before federal income
    tax expense


15,554,000




12,498,000



44,615,000



37,592,000
















Federal income tax expense


2,954,000




2,375,000



8,476,000



7,142,000
















    Net Income

$

12,600,000



$

10,123,000


$

36,139,000


$

30,450,000
















  Basic earnings per share


$0.77




$0.61



$2.20



$1.83


  Diluted earnings per share


$0.77




$0.61



$2.20



$1.83
















  Average basic shares outstanding


16,390,203




16,611,411



16,415,843



16,602,701


  Average diluted shares outstanding


16,393,078




16,619,295



16,420,845



16,610,544


 

 

Mercantile Bank Corporation















Third Quarter 2019 Results















MERCANTILE BANK CORPORATION

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)


















Quarterly


Year-To-Date

(dollars in thousands except per share data)

2019


2019


2019


2018


2018







3rd Qtr


2nd Qtr


1st Qtr


4th Qtr


3rd Qtr


2019


2018

EARNINGS















  Net interest income

$

31,605


31,116


30,645


30,818


29,840


93,366


89,264

  Provision for loan losses

$

700


900


850


0


400


2,450


1,100

  Noninterest income

$

6,676


6,334


6,632


5,370


4,708


19,643


13,639

  Noninterest expense

$

22,027


22,087


21,830


21,958


21,650


65,944


64,211

  Net income before federal income















   tax expense

$

15,554


14,463


14,597


14,230


12,498


44,615


37,592

  Net income

$

12,600


11,715


11,824


11,573


10,123


36,139


30,450

  Basic earnings per share

$

0.77


0.71


0.72


0.70


0.61


2.20


1.83

  Diluted earnings per share

$

0.77


0.71


0.72


0.70


0.61


2.20


1.83

  Average basic shares outstanding


16,390,203


16,428,187


16,429,571


16,594,412


16,611,411


16,415,843


16,602,701

  Average diluted shares outstanding


16,393,078


16,434,714


16,435,176


16,600,108


16,619,295


16,420,845


16,610,544
















PERFORMANCE RATIOS















  Return on average assets


1.38%


1.33%


1.39%


1.39%


1.22%


1.37%


1.25%

  Return on average equity


12.39%


12.08%


12.75%


12.40%


10.64%


12.40%


10.97%

  Net interest margin (fully tax-equivalent)

3.71%


3.79%


3.88%


3.98%


3.87%


3.79%


3.95%

  Efficiency ratio


57.54%


58.98%


58.56%


60.68%


62.67%


58.40%


62.40%

  Full-time equivalent employees


624


652


631


630


637


624


637
















YIELD ON ASSETS / COST OF FUNDS















  Yield on loans


5.06%


5.18%


5.21%


5.08%


4.91%


5.15%


4.99%

  Yield on securities


2.99%


2.85%


2.82%


2.80%


2.70%


2.89%


2.65%

  Yield on other interest-earning assets


2.15%


2.38%


2.40%


2.20%


1.98%


2.32%


1.73%

  Yield on total earning assets


4.73%


4.85%


4.89%


4.80%


4.60%


4.82%


4.63%

  Yield on total assets


4.42%


4.53%


4.56%


4.46%


4.28%


4.50%


4.31%

  Cost of deposits


0.83%


0.85%


0.77%


0.63%


0.56%


0.82%


0.53%

  Cost of borrowed funds


2.35%


2.40%


2.43%


2.22%


2.14%


2.39%


2.00%

  Cost of interest-bearing liabilities


1.52%


1.55%


1.47%


1.26%


1.11%


1.52%


1.02%

  Cost of funds (total earning assets)


1.02%


1.06%


1.01%


0.82%


0.73%


1.03%


0.68%

  Cost of funds (total assets)


0.95%


0.99%


0.94%


0.76%


0.68%


0.96%


0.64%
















PURCHASE ACCOUNTING ADJUSTMENTS














  Loan portfolio - increase interest income

$

327


569


211


603


386


1,107


3,434

  Trust preferred - increase interest expense

$

171


171


171


171


171


513


513

  Core deposit intangible - increase overhead

$

397


450


477


477


477


1,324


1,563
















MORTGAGE BANKING ACTIVITY















  Total mortgage loans originated

$

132,852


80,205


44,932


44,448


66,829


257,989


169,798

  Purchase mortgage loans originated

$

61,839


41,986


29,891


29,729


47,704


133,716


114,080

  Refinance mortgage loans originated

$

71,013


38,219


15,041


14,719


19,125


124,273


55,718

  Total mortgage loans sold

$

104,890


49,396


21,502


21,805


30,713


175,788


74,640

  Net gain on sale of mortgage loans

$

2,886


1,419


698


829


1,116


5,003


2,696
















CAPITAL















  Tangible equity to tangible assets


9.67%


9.82%


9.41%


9.68%


9.98%


9.67%


9.98%

  Tier 1 leverage capital ratio


11.08%


11.17%


11.16%


11.41%


11.76%


11.08%


11.76%

  Common equity risk-based capital ratio


10.54%


10.47%


10.46%


10.41%


10.93%


10.54%


10.93%

  Tier 1 risk-based capital ratio


11.88%


11.82%


11.84%


11.80%


12.35%


11.88%


12.35%

  Total risk-based capital ratio


12.61%


12.55%


12.56%


12.50%


13.05%


12.61%


13.05%

  Tier 1 capital

$

395,010


388,788


379,334


373,721


382,829


395,010


382,829

  Tier 1 plus tier 2 capital

$

419,424


412,841


402,469


396,102


404,521


419,424


404,521

  Total risk-weighted assets

$

3,325,217


3,289,958


3,204,295


3,167,655


3,100,158


3,325,217


3,100,158

  Book value per common share

$

24.93


24.34


23.37


22.70


22.84


24.93


22.84

  Tangible book value per common share

$

21.64


21.05


20.05


19.37


19.50


21.64


19.50

  Cash dividend per common share

$

0.27


0.26


0.26


1.00


0.24


0.79


0.68
















ASSET QUALITY















  Gross loan charge-offs

$

519


78


174


354


169


771


1,096

  Recoveries

$

180


96


79


1,042


294


355


2,187

  Net loan charge-offs (recoveries)

$

339


(18)


95


(688)


(125)


416


(1,091)

  Net loan charge-offs to average loans


0.05%


(0.01%)


0.01%


(0.10%)


(0.02%)


0.02%


(0.06%)

  Allowance for loan losses

$

24,414


24,053


23,135


22,380


21,692


24,414


21,692

  Allowance to originated loans


0.88%


0.89%


0.89%


0.88%


0.88%


0.88%


0.88%

  Nonperforming loans

$

2,644


3,505


4,138


4,141


4,852


2,644


4,852

  Other real estate/repossessed assets

$

243


446


396


811


948


243


948

  Nonperforming loans to total loans


0.09%


0.12%


0.15%


0.15%


0.18%


0.09%


0.18%

  Nonperforming assets to total assets


0.08%


0.11%


0.13%


0.15%


0.18%


0.08%


0.18%
















NONPERFORMING ASSETS - COMPOSITION













  Residential real estate:















    Land development

$

32


33


45


0


0


32


0

    Construction

$

0


0


0


0


0


0


0

    Owner occupied / rental

$

2,576


3,225


3,404


3,555


3,908


2,576


3,908

  Commercial real estate:















    Land development

$

0


0


0


0


0


0


0

    Construction

$

0


0


0


0


0


0


0

    Owner occupied

$

240


642


791


1,363


1,543


240


1,543

    Non-owner occupied

$

26


26


62


0


0


26


0

  Non-real estate:















    Commercial assets

$

0


2


207


17


331


0


331

    Consumer assets

$

13


23


25


17


18


13


18

  Total nonperforming assets


2,887


3,951


4,534


4,952


5,800


2,887


5,800
















NONPERFORMING ASSETS - RECON















  Beginning balance

$

3,951


4,534


4,952


5,800


5,807


4,952


9,403

  Additions - originated loans/former branch

$

339


26


539


1,247


999


904


2,725

  Merger-related activity

$

57


34


0


0


5


91


51

  Return to performing status

$

(126)


0


0


0


0


(126)


(175)

  Principal payments

$

(1,014)


(512)


(382)


(1,836)


(857)


(1,908)


(3,192)

  Sale proceeds

$

(253)


(74)


(429)


(128)


(147)


(756)


(2,253)

  Loan charge-offs

$

(59)


(36)


(146)


(57)


(3)


(241)


(650)

  Valuation write-downs

$

(8)


(21)


0


(74)


(4)


(29)


(109)

  Ending balance

$

2,887


3,951


4,534


4,952


5,800


2,887


5,800
















LOAN PORTFOLIO COMPOSITION















  Commercial:















    Commercial & industrial

$

882,747


881,196


839,207


822,723


818,113


882,747


818,113

    Land development & construction

$

48,418


45,158


45,892


44,885


39,396


48,418


39,396

    Owner occupied comm'l R/E

$

567,267


556,868


551,517


548,619


542,730


567,267


542,730

    Non-owner occupied comm'l R/E

$

883,079


852,844


835,679


816,282


811,767


883,079


811,767

    Multi-family & residential rental

$

126,855


128,489


127,903


127,597


94,101


126,855


94,101

      Total commercial

$

2,508,366


2,464,555


2,400,198


2,360,106


2,306,107


2,508,366


2,306,107

  Retail:















    1-4 family mortgages

$

346,095


335,618


316,315


307,540


301,765


346,095


301,765

    Home equity & other consumer

$

78,552


81,320


83,126


85,439


89,545


78,552


89,545

      Total retail

$

424,647


416,938


399,441


392,979


391,310


424,647


391,310

      Total loans

$

2,933,013


2,881,493


2,799,639


2,753,085


2,697,417


2,933,013


2,697,417
















END OF PERIOD BALANCES















  Loans

$

2,933,013


2,881,493


2,799,639


2,753,085


2,697,417


2,933,013


2,697,417

  Securities

$

363,535


365,926


355,878


353,388


337,603


363,535


337,603

  Other interest-earning assets

$

144,263


92,750


168,572


10,482


28,193


144,263


28,193

  Total earning assets (before allowance)

$

3,440,811


3,340,169


3,324,089


3,116,955


3,063,213


3,440,811


3,063,213

  Total assets

$

3,710,380


3,576,139


3,551,754


3,363,907


3,300,106


3,710,380


3,300,106

  Noninterest-bearing deposits

$

967,189


918,581


857,734


889,784


879,442


967,189


879,442

  Interest-bearing deposits

$

1,799,902


1,700,628


1,753,240


1,573,924


1,629,368


1,799,902


1,629,368

  Total deposits

$

2,767,091


2,619,209


2,610,974


2,463,708


2,508,810


2,767,091


2,508,810

  Total borrowed funds

$

517,523


543,098


544,566


513,220


401,575


517,523


401,575

  Total interest-bearing liabilities

$

2,317,425


2,243,726


2,297,806


2,087,144


2,030,943


2,317,425


2,030,943

  Shareholders' equity

$

407,200


400,117


383,729


375,249


379,465


407,200


379,465
















AVERAGE BALANCES















  Loans

$

2,903,161


2,848,343


2,787,430


2,706,617


2,658,092


2,846,735


2,602,718

  Securities

$

363,394


357,718


354,459


343,597


342,593


358,557


343,983

  Other interest-earning assets

$

118,314


94,616


67,915


30,564


61,810


93,800


82,700

  Total earning assets (before allowance)

$

3,384,869


3,300,677


3,209,804


3,080,778


3,062,495


3,299,092


3,029,401

  Total assets

$

3,622,168


3,529,598


3,441,774


3,312,648


3,295,129


3,531,841


3,259,153

  Noninterest-bearing deposits

$

930,851


875,645


852,247


905,065


893,181


886,536


849,337

  Interest-bearing deposits

$

1,741,563


1,719,433


1,668,563


1,579,632


1,628,346


1,710,120


1,651,186

  Total deposits

$

2,672,414


2,595,078


2,520,810


2,484,697


2,521,527


2,596,656


2,500,523

  Total borrowed funds

$

529,590


530,802


532,864


434,365


383,830


531,073


375,307

  Total interest-bearing liabilities

$

2,271,153


2,250,235


2,201,427


2,013,997


2,012,176


2,241,193


2,026,493

  Shareholders' equity

$

403,350


389,133


376,103


370,175


377,574


389,628


371,005

 

Cision View original content:http://www.prnewswire.com/news-releases/mercantile-bank-corporation-reports-strong-third-quarter-2019-results-300937992.html

SOURCE Mercantile Bank Corporation