MBWM
$32.03
Mercantile Bank
$.36
1.14%
Earnings Details
1st Quarter March 2021
Tuesday, April 20, 2021 6:01:00 AM
Tweet Share Watch
Summary

Mercantile Bank (MBWM) Recent Earnings

Mercantile Bank (MBWM) reported 1st Quarter March 2021 earnings of $0.87 per share on revenue of $48.2 million. The consensus earnings estimate was $0.65 per share on revenue of $41.7 million. Revenue grew 8.5% on a year-over-year basis.

Mercantile Bank Corp through its seven offices provides commercial banking services mainly to small- to medium-sized businesses and retail banking services in and around the Grand Rapids, Holland and Lansing areas.

Results
Reported Earnings
$0.87
Earnings Whisper
-
Consensus Estimate
$0.65
Reported Revenue
$48.2 Mil
Revenue Estimate
$41.7 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Mercantile Bank Corporation Announces Strong First Quarter 2021 Results

GRAND RAPIDS, Mich., April 20, 2021 /PRNewswire/ -- Mercantile Bank Corporation (NASDAQ: MBWM) ("Mercantile") reported net income of $14.2 million, or $0.87 per diluted share, for the first quarter of 2021, compared with net income of $10.7 million, or $0.65 per diluted share, for the respective prior-year period.

"We are very pleased to begin 2021 with a quarter of robust financial performance," said Robert B. Kaminski, Jr., President and Chief Executive Officer of Mercantile.  "Our strong financial results include ongoing strength in mortgage banking income, sound asset quality, solid growth in core commercial loans, and managed overhead costs.  The extraordinary efforts of the Mercantile team have allowed us to successfully and consistently meet our customers' banking needs during this continuing period of uncertainty stemming from the COVID-19 pandemic."

First quarter highlights include:

  • Robust earnings and capital position
  • Strong mortgage banking income
  • Sustained strength in asset quality metrics
  • Annualized net core commercial loan growth of nearly 14 percent
  • Continued strength in commercial loan and residential mortgage loan pipelines
  • Paycheck Protection Program round two loan fundings of $203 million
  • Additional local deposit growth

Operating Results

Total revenue, which consists of net interest income and noninterest income, was $43.0 million during the first quarter of 2021, up $6.1 million, or 16.6 percent, from the prior-year first quarter.  Net interest income during the first three months of 2021 was $29.5 million, down from $30.3 million during the respective 2020 period due to a lower net interest margin, which more than offset the positive impact of earning asset growth.  Noninterest income totaled $13.5 million during the first quarter of 2021, up $6.9 million from the first quarter of 2020, primarily due to increased mortgage banking income.  The net interest margin was 2.77 percent in the first quarter of 2021, compared to 3.00 percent in the fourth quarter of 2020 and 3.63 percent in the first quarter of 2020.  The decreased net interest margin resulted from the lower interest rate environment and substantial levels of excess liquidity.

The yield on average earning assets was 3.26 percent during the first quarter of 2021, down from 3.55 percent during the fourth quarter of 2020, mainly due to a decreased yield on commercial loans, which equaled 4.07 percent and 4.41 percent in the respective periods.  The decreased yield on commercial loans primarily reflected reduced Paycheck Protection Program net fee accretion stemming from a lower level of forgiveness activity. 

The cost of funds declined from 0.55 percent during the fourth quarter of 2020 to 0.49 percent during the first quarter of 2021, mainly due to lower rates paid on renewed time deposits, reflecting the declining interest rate environment, and a change in funding mix, consisting of an increase in lower-costing non-time deposits as a percentage of total funding sources. 

The yield on average earning assets declined from 4.54 percent during the first three months of 2020 to 3.26 percent during the respective 2021 period, primarily resulting from decreased yields on commercial loans, securities and interest-earning deposits, along with a change in earning asset mix.  The decreased yield on commercial loans primarily reflected reduced interest rates on variable-rate commercial loans resulting from the Federal Open Market Committee significantly lowering the targeted federal funds rate by a total of 150 basis points during March of 2020.  The lower yield on securities mainly reflected decreased accelerated discount accretion on called U.S. Government agency bonds and lower yields on newly purchased bonds, reflecting the declining interest rate environment.  Accelerated discount accretion totaled less than $0.1 million during the first three months of 2021, compared to $1.8 million during the respective 2020 period.  The reduced yield on interest-earning deposits resulted from the decreased interest rate environment. 

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 the first three months of 2021, negatively impacted the yield on average earning assets and the net interest margin by 44 basis points and 37 basis points, respectively, during the first quarter 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 as well as lower business and consumer investing and spending.

The cost of funds decreased from 0.91 percent during the first quarter of 2020 to 0.49 percent during the current-year first quarter, primarily due to lower rates paid on local deposit accounts and borrowings, reflecting the declining interest rate environment.  A change in funding mix, consisting of an increase in lower-costing non-time deposits as a percentage of total funding sources, also contributed to the decrease in the cost of funds.

Mercantile recorded loan loss provision expense of $0.3 million during the first quarter of 2021, compared to $0.8 million during the prior-year first quarter.  The provision expense recorded during both periods primarily reflected net loan growth.  The recording of net loan recoveries in both periods reduced the required provision amounts.

Noninterest income during the first quarter of 2021 was $13.5 million, up $6.9 million, or approximately 106 percent, from the prior-year first quarter.  The improved level of noninterest income mainly resulted from increased mortgage banking income stemming from a substantial upturn in refinance activity driven by a decrease in residential mortgage loan interest rates, an increase in purchase activity, and the ongoing success of strategic initiatives that were implemented to gain market share.  Fee income generated from an interest rate swap program that was introduced during the fourth quarter of 2020 and growth in credit and debit card income also contributed to the increased level of noninterest income.  The interest rate swap program provides certain commercial borrowers with a longer-term fixed-rate option and assists Mercantile in managing associated longer-term interest rate risk.

Noninterest expense totaled $25.1 million during the first quarter of 2021, compared to $22.9 million during the first quarter of 2020.  Overhead costs during the first three months of 2021 included write-downs of former branch facilities totaling $0.5 million.  Excluding these transactions, noninterest expense increased $1.6 million, or 7.1 percent, during the first quarter of 2021 compared to the respective 2020 period.  The higher level of expense primarily resulted from increased compensation costs, mainly depicting higher residential mortgage lender commissions and related incentives, annual employee merit pay increases, increased health insurance costs, and a bonus accrual.  The higher level of commissions and associated incentives primarily reflected the significant increase in residential mortgage loan originations during the first quarter of 2021, which were up nearly 85 percent compared to the respective 2020 period.

Mr. Kaminski commented, "The continuing success of strategic initiatives that were implemented to increase market penetration, combined with a strong level of residential mortgage loan production, provided for another quarter of robust mortgage banking income.  Refinance activity remained at a high level during the first quarter due to the ongoing low interest rate environment.  Although we expect refinance activity to decline in future periods as a result of a reduction in the number of borrowers eligible to refinance from an economic benefit standpoint and the recent uptick in residential mortgage loan interest rates, we believe solid mortgage banking income can be recorded in future periods based on the current pipeline and application volume, along with our recent lender hires and new office openings.  As evidenced by the introduction of a fee-producing interest rate swap program, we remain focused on expanding our noninterest income revenue streams.  We are pleased with the improvement in credit and debit card income, which surpassed pre-pandemic levels.  Controlling overhead costs remains a vital component of our growth initiatives, and we continue to review our product delivery channels, treasury management solutions, and branch network to identify opportunities to operate more efficiently." 

Balance Sheet

As of March 31, 2021, total assets were $4.71 billion, up $273 million, or 6.2 percent, from December 31, 2020.  Total loans increased $171 million during the first quarter of 2021, reflecting net growth in Paycheck Protection Program loans of $89.3 million and core commercial loans of $83.9 million.  Commercial lines of credit remained relatively steady during the last nine months after having declined $109 million during the second quarter of 2020 largely due to the impacts of the COVID-19 pandemic environment and federal government stimulus programs.  As of March 31, 2021, unfunded commitments on commercial construction and development loans totaled approximately $135 million, which are expected to be largely funded over the next 12 to 18 months.  Interest-earning deposits increased $33.7 million during the first three months of 2021, primarily reflecting ongoing local deposit growth, which outpaced loan growth and an expanded securities portfolio.

Ray Reitsma, President of Mercantile Bank of Michigan, noted, "Although our lending team spent considerable time helping loan customers obtain funds under round two of the Paycheck Protection Program while also assisting round one loan recipients to gather and submit required information to the Small Business Administration for loan forgiveness determinations during the first quarter, we remained focused on meeting the customary needs of our existing clients and identifying and attracting new customer relationships.  We are very pleased with the level of net core commercial loan growth during the quarter, along with the continuing strength of our commercial loan and residential mortgage loan pipelines."

Excluding Paycheck Protection Program loan balances, commercial and industrial loans and owner-occupied commercial real estate loans together represented approximately 55 percent of total commercial loans as of March 31, 2021, a level that has remained relatively consistent and in line with internal expectations. 

Total deposits at March 31, 2021, were $3.64 billion, up $233 million, or 6.8 percent, from December 31, 2020.  Local deposits were up $249 million during the first three months of 2021, while brokered deposits were down $16.0 million.  The growth in local deposits, which occurred despite typical and expected seasonal business deposit withdrawals used for bonus and tax payments, mainly reflected federal government stimulus payments and reduced business and consumer investing and spending, along with Paycheck Protection Program loan proceeds being deposited into customers' accounts at the time the loans were originated and remaining on deposit as of March 31, 2021.  Wholesale funds were $425 million, or approximately 10 percent of total funds, as of March 31, 2021, compared to $441 million, or approximately 11 percent of total funds, as of December 31, 2020.

Asset Quality

Nonperforming assets at March 31, 2021, were $3.2 million, or 0.1 percent of total assets, compared to $4.1 million, or 0.1 percent of total assets, at December 31, 2020, and $3.7 million, or 0.1 percent of total assets, at March 31, 2020.  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 first three months of 2021.  During the first quarter of 2021, loan charge-offs totaled $0.1 million, while recoveries of prior period loan charge-offs equaled $0.5 million, providing for net loan recoveries of $0.4 million, or an annualized 0.05 percent of average total loans.

Mr. Reitsma commented, "As evidenced by continuing low levels of past due loans and nonperforming assets, our asset quality has remained strong during the COVID-19 pandemic.  The ongoing strength in our asset quality metrics depicts our commitment to sound underwriting and the effectiveness of our commercial borrowers' management teams in meeting the challenges presented by the pandemic.  Virtually all commercial and retail loan customers that were granted loan payment deferrals are now making full contractual loan payments."

Capital Position

The Bank's capital position remains "well-capitalized" with a total risk-based capital ratio of 13.3 percent as of March 31, 2021, compared to 13.5 percent at December 31, 2020.  At March 31, 2021, the Bank had approximately $115 million in excess of the 10.0 percent minimum regulatory threshold required to be considered a "well-capitalized" institution.  Mercantile reported 16,219,138 total shares outstanding at March 31, 2021.

As part of a $20 million common stock repurchase program announced in May 2019, Mercantile repurchased approximately 118,000 shares for $3.5 million, or a weighted average all-in cost per share of $29.91, during the first quarter of 2021.

Mr. Kaminski concluded, "We have continued to closely monitor new pandemic-related developments and have revised our COVID-19 pandemic response plan as necessary to provide customers with needed banking services while protecting them and our employees from the spread of the coronavirus to the best of our abilities.  Our ongoing financial strength has allowed us to build shareholder value through a continuation of the cash dividend program despite the challenges stemming from the pandemic, and we are focused on positioning our company to remain a consistent high performer.  We are excited about Mercantile's future and believe that our strong first quarter financial performance has positioned us to deliver solid operating results during the remainder of 2021."

Investor Presentation

Mercantile has prepared presentation materials (the "Conference Call & Webcast Presentation") that management intends to use during its previously announced first quarter 2021 conference call on Tuesday, April 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 more detailed 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 $4.7 billion and operates 44 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 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; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulation or actions by bank regulators; our participation in the Paycheck Protection Program administered by the Small Business Administration; 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 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, including the significant disruption to financial market and other economic activity caused by the outbreak and continuance of the COVID-19 pandemic; 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 and CEO

Executive Vice President and CFO

            616-726-1502

616-726-1202

            rkaminski@mercbank.com

cchristmas@mercbank.com

 

 

Mercantile Bank Corporation







First Quarter 2021 Results














MERCANTILE BANK CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)










MARCH 31,


DECEMBER 31,


MARCH 31,



2021


2020


2020








ASSETS







   Cash and due from banks

$

55,489,000

$

62,832,000

$

49,781,000

   Interest-earning deposits


596,855,000


563,174,000


186,938,000

      Total cash and cash equivalents


652,344,000


626,006,000


236,719,000








   Securities available for sale


434,257,000


387,347,000


312,147,000

   Federal Home Loan Bank stock


18,002,000


18,002,000


18,002,000








   Loans


3,364,370,000


3,193,470,000


2,876,891,000

   Allowance for loan losses


(38,695,000)


(37,967,000)


(24,828,000)

      Loans, net


3,325,675,000


3,155,503,000


2,852,063,000








   Premises and equipment, net


55,388,000


58,959,000


59,143,000

   Bank owned life insurance


72,395,000


72,131,000


70,613,000

   Goodwill


49,473,000


49,473,000


49,473,000

   Core deposit intangible, net


2,118,000


2,436,000


3,443,000

   Mortgage loans held for sale


40,297,000


22,888,000


24,652,000

   Assets held for sale


13,159,000


0


0

   Other assets


47,246,000


44,599,000


31,132,000








      Total assets

$

4,710,354,000

$

4,437,344,000

$

3,657,387,000















LIABILITIES AND SHAREHOLDERS' EQUITY







   Deposits:







      Noninterest-bearing

$

1,605,471,000

$

1,433,403,000

$

956,290,000

      Interest-bearing


2,039,491,000


1,978,150,000


1,689,126,000

         Total deposits


3,644,962,000


3,411,553,000


2,645,416,000








   Securities sold under agreements to repurchase


141,310,000


118,365,000


133,270,000

   Federal Home Loan Bank advances


394,000,000


394,000,000


394,000,000

   Subordinated debentures


47,733,000


47,563,000


47,051,000

   Liabilities held for sale


17,280,000


0


0

   Accrued interest and other liabilities


23,826,000


24,309,000


19,261,000

         Total liabilities


4,269,111,000


3,995,790,000


3,238,998,000








SHAREHOLDERS' EQUITY







   Common stock


299,358,000


302,029,000


299,584,000

   Retained earnings


143,642,000


134,039,000


114,012,000

   Accumulated other comprehensive income/(loss)


(1,757,000)


5,486,000


4,793,000

      Total shareholders' equity


441,243,000


441,554,000


418,389,000








      Total liabilities and shareholders' equity

$

4,710,354,000

$

4,437,344,000

$

3,657,387,000

 

Mercantile Bank Corporation









First Quarter 2021 Results









MERCANTILE BANK CORPORATION

CONSOLIDATED REPORTS OF INCOME

(Unaudited)












THREE MONTHS ENDED


THREE MONTHS ENDED



March 31, 2021


March 31, 2020










INTEREST INCOME









   Loans, including fees


$

32,985,000



$

33,442,000


   Investment securities



1,632,000




4,017,000


   Other interest-earning assets



168,000




475,000


      Total interest income



34,785,000




37,934,000











INTEREST EXPENSE









   Deposits



2,717,000




4,641,000


   Short-term borrowings



36,000




40,000


   Federal Home Loan Bank advances



2,027,000




2,212,000


   Other borrowed money



472,000




724,000


      Total interest expense



5,252,000




7,617,000











      Net interest income



29,533,000




30,317,000











Provision for loan losses



300,000




750,000











      Net interest income after









         provision for loan losses



29,233,000




29,567,000











NONINTEREST INCOME









   Service charges on accounts



1,155,000




1,222,000


   Mortgage banking income



8,800,000




2,627,000


   Credit and debit card income



1,678,000




1,361,000


   Interest rate swap income



653,000




0


   Payroll services



557,000




577,000


   Earnings on bank owned life insurance



277,000




336,000


   Other income



343,000




427,000


      Total noninterest income



13,463,000




6,550,000











NONINTEREST EXPENSE









   Salaries and benefits



15,086,000




13,528,000


   Occupancy



2,014,000




2,059,000


   Furniture and equipment



889,000




778,000


   Data processing costs



2,617,000




2,483,000


   Other expense



4,511,000




4,092,000


      Total noninterest expense



25,117,000




22,940,000











      Income before federal income









         tax expense



17,579,000




13,177,000











Federal income tax expense



3,340,000




2,504,000











      Net Income


$

14,239,000



$

10,673,000











   Basic earnings per share



$0.87




$0.65


   Diluted earnings per share



$0.87




$0.65











   Average basic shares outstanding



16,283,044




16,350,281


   Average diluted shares outstanding



16,283,490




16,351,559


 

Mercantile Bank Corporation












First Quarter 2021 Results












MERCANTILE BANK CORPORATION

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)















Quarterly


(dollars in thousands except per share data)


2021


2020


2020


2020


2020




1st Qtr


4th Qtr


3rd Qtr


2nd Qtr


1st Qtr


EARNINGS












   Net interest income

$

29,533


31,849


29,509


30,571


30,317


   Provision for loan losses

$

300


2,500


3,200


7,600


750


   Noninterest income

$

13,463


14,333


13,307


10,984


6,550


   Noninterest expense

$

25,117


25,941


26,423


23,216


22,940


   Net income before federal income












      tax expense

$

17,579


17,741


13,193


10,739


13,177


   Net income

$

14,239


14,082


10,686


8,698


10,673


   Basic earnings per share

$

0.87


0.87


0.66


0.54


0.65


   Diluted earnings per share

$

0.87


0.87


0.66


0.54


0.65


   Average basic shares outstanding


16,283,044


16,279,052


16,233,196


16,212,500


16,350,281


   Average diluted shares outstanding


16,283,490


16,279,243


16,233,666


16,213,264


16,351,559














PERFORMANCE RATIOS












   Return on average assets


1.26%


1.25%


0.98%


0.85%


1.19%


   Return on average equity


13.02%


12.75%


9.86%


8.26%


10.20%


   Net interest margin (fully tax-equivalent)


2.77%


3.00%


2.86%


3.17%


3.63%


   Efficiency ratio


58.42%


56.17%


61.71%


55.87%


62.22%


   Full-time equivalent employees


621


621


618


637


626














YIELD ON ASSETS / COST OF FUNDS












   Yield on loans


4.03%


4.34%


4.03%


4.18%


4.69%


   Yield on securities


1.61%


1.69%


2.26%


3.37%


4.73%


   Yield on other interest-earning assets


0.11%


0.12%


0.12%


0.15%


1.22%


   Yield on total earning assets


3.26%


3.55%


3.45%


3.85%


4.54%


   Yield on total assets


3.09%


3.35%


3.25%


3.62%


4.23%


   Cost of deposits


0.31%


0.37%


0.41%


0.48%


0.70%


   Cost of borrowed funds


1.78%


1.75%


1.78%


1.91%


2.31%


   Cost of interest-bearing liabilities


0.82%


0.91%


0.99%


1.11%


1.36%


   Cost of funds (total earning assets)


0.49%


0.55%


0.59%


0.68%


0.91%


   Cost of funds (total assets)


0.47%


0.51%


0.56%


0.64%


0.85%














PURCHASE ACCOUNTING ADJUSTMENTS












   Loan portfolio - increase interest income

$

51


158


332


169


285


   Trust preferred - increase interest expense

$

171


171


171


171


171


   Core deposit intangible - increase overhead

$

318


318


318


371


397














MORTGAGE BANKING ACTIVITY












   Total mortgage loans originated

$

245,200


218,904


237,195


275,486


132,859


   Purchase mortgage loans originated

$

81,529


99,490


93,068


58,015


46,538


   Refinance mortgage loans originated

$

163,671


119,414


144,127


217,471


86,321


   Mortgage loans originated to sell

$

195,655


159,942


191,318


225,665


95,327


   Net gain on sale of mortgage loans

$

9,182


9,476


10,199


7,760


2,086














CAPITAL












   Tangible equity to tangible assets


8.36%


8.89%


8.69%


8.74%


10.14%


   Tier 1 leverage capital ratio


9.67%


9.77%


9.80%


10.21%


11.47%


   Common equity risk-based capital ratio


11.11%


11.34%


11.37%


11.34%


10.92%


   Tier 1 risk-based capital ratio


12.41%


12.68%


12.74%


12.74%


12.28%


   Total risk-based capital ratio


13.51%


13.80%


13.82%


13.73%


13.03%


   Tier 1 capital

$

437,567


430,146


420,225


412,526


406,445


   Tier 1 plus tier 2 capital

$

476,462


468,113


455,797


444,772


431,273


   Total risk-weighted assets

$

3,526,161


3,391,563


3,298,047


3,238,444


3,309,336


   Book value per common share

$

27.21


27.04


26.59


26.20


25.82


   Tangible book value per common share

$

24.02


23.86


23.37


22.96


22.55


   Cash dividend per common share

$

0.29


0.28


0.28


0.28


0.28














ASSET QUALITY












   Gross loan charge-offs

$

53


340


124


335


40


   Recoveries

$

481


234


250


153


229


   Net loan charge-offs (recoveries)

$

(428)


106


(126)


182


(189)


   Net loan charge-offs (recoveries) to average loans


(0.05%)


0.01%


(0.02%)


0.02%


(0.03%)


   Allowance for loan losses

$

38,695


37,967


35,572


32,246


24,828


   Allowance to loans


1.15%


1.19%


1.07%


0.98%


0.86%


   Allowance to loans excluding PPP loans


1.33%


1.33%


1.27%


1.16%


0.86%


   Nonperforming loans

$

2,793


3,384


4,141


3,212


3,469


   Other real estate/repossessed assets

$

374


701


512


198


271


   Nonperforming loans to total loans


0.08%


0.11%


0.12%


0.10%


0.12%


   Nonperforming assets to total assets


0.07%


0.09%


0.11%


0.08%


0.10%














NONPERFORMING ASSETS - COMPOSITION












   Residential real estate:












      Land development

$

34


35


36


36


37


      Construction

$

0


0


198


198


283


      Owner occupied / rental

$

2,305


2,607


2,597


2,750


2,922


   Commercial real estate:












      Land development

$

0


0


0


0


43


      Construction

$

0


0


0


0


0


      Owner occupied  

$

646


1,232


1,576


275


287


      Non-owner occupied

$

0


22


23


25


0


   Non-real estate:












      Commercial assets

$

169


172


198


98


156


      Consumer assets

$

13


17


25


28


12


   Total nonperforming assets

$

3,167


4,085


4,653


3,410


3,740














NONPERFORMING ASSETS - RECON












   Beginning balance

$

4,085


4,653


3,410


3,740


2,736


   Additions

$

116


972


1,615


220


1,313


   Return to performing status

$

(115)


0


(72)


(26)


(7)


   Principal payments

$

(559)


(1,064)


(249)


(278)


(110)


   Sale proceeds

$

(77)


(245)


0


(49)


(192)


   Loan charge-offs

$

(33)


(231)


(51)


(173)


0


   Valuation write-downs

$

(250)


0


0


(24)


0


   Ending balance

$

3,167


4,085


4,653


3,410


3,740














LOAN PORTFOLIO COMPOSITION












   Commercial:












      Commercial & industrial

$

1,284,507


1,145,423


1,321,419


1,307,456


873,679


      Land development & construction

$

58,738


55,055


50,941


52,984


62,908


      Owner occupied comm'l R/E

$

544,342


529,953


549,364


567,621


579,229


      Non-owner occupied comm'l R/E

$

932,334


917,436


878,897


841,145


823,366


      Multi-family & residential rental

$

147,294


146,095


137,740


132,047


133,148


         Total commercial

$

2,967,215


2,793,962


2,938,361


2,901,253


2,472,330


   Retail:












      1-4 family mortgages

$

337,844


337,888


322,118


325,923


331,686


      Home equity & other consumer

$

59,311


61,620


63,723


64,743


72,875


         Total retail

$

397,155


399,508


385,841


390,666


404,561


         Total loans

$

3,364,370


3,193,470


3,324,202


3,291,919


2,876,891














END OF PERIOD BALANCES












   Loans

$

3,364,370


3,193,470


3,324,202


3,291,919


2,876,891


   Securities

$

452,259


405,349


330,426


325,663


330,149


   Other interest-earning assets

$

596,855


563,174


495,308


386,711


186,938


   Total earning assets (before allowance)

$

4,413,484


4,161,993


4,149,936


4,004,293


3,393,978


   Total assets

$

4,710,354


4,437,344


4,420,610


4,314,379


3,657,387


   Noninterest-bearing deposits

$

1,605,471


1,433,403


1,449,879


1,445,620


956,290


   Interest-bearing deposits

$

2,039,491


1,978,150


1,922,155


1,816,660


1,689,126


   Total deposits

$

3,644,962


3,411,553


3,372,034


3,262,280


2,645,416


   Total borrowed funds

$

584,672


562,360


600,892


611,298


576,996


   Total interest-bearing liabilities

$

2,624,163


2,540,510


2,523,047


2,427,958


2,266,122


   Shareholders' equity

$

441,243


441,554


431,900


425,221


418,389














AVERAGE BALANCES












   Loans

$

3,318,281


3,268,866


3,292,025


3,254,985


2,849,892


   Securities

$

419,514


365,631


327,668


333,843


344,906


   Other interest-earning assets

$

591,617


559,593


457,598


251,833


153,638


   Total earning assets (before allowance)

$

4,329,412


4,194,090


4,077,291


3,840,661


3,348,436


   Total assets

$

4,578,887


4,459,370


4,346,624


4,119,573


3,602,784


   Noninterest-bearing deposits

$

1,510,334


1,478,616


1,454,887


1,304,986


923,827


   Interest-bearing deposits

$

2,026,896


1,936,069


1,863,302


1,767,985


1,724,030


   Total deposits

$

3,537,230


3,414,685


3,318,189


3,072,971


2,647,857


   Total borrowed funds

$

576,645


588,100


583,994


607,074


517,961


   Total interest-bearing liabilities

$

2,603,541


2,524,169


2,447,296


2,375,059


2,241,991


   Shareholders' equity

$

443,548


438,171


429,865


422,230


419,612


 

MBWM-ER

Cision View original content:http://www.prnewswire.com/news-releases/mercantile-bank-corporation-announces-strong-first-quarter-2021-results-301271918.html

SOURCE Mercantile Bank Corporation