SYS-CON MEDIA Authors: Mat Mathews, PR.com Newswire, David Smith, Tim Crawford, Kevin Benedict

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Mercantile Bank Corporation Reports Strong Fourth Quarter and Full Year 2013 Results

2013 diluted earnings per share increased 69 percent for the quarter and 50 percent for the year

GRAND RAPIDS, Mich., Jan. 21, 2014 /PRNewswire/ -- Mercantile Bank Corporation (NASDAQ: MBWM) ("Mercantile") reported net income attributable to common shares of $5.2 million, or $0.59 per diluted share, for the fourth quarter of 2013, compared with net income attributable to common shares of $3.0 million, or $0.35 per diluted share, for the prior-year period. For the full year 2013, Mercantile reported net income attributable to common shares of $17.0 million, or $1.95 per diluted share, compared with net income attributable to common shares of $11.5 million, or $1.30 per diluted share, for the full year 2012.

The fourth quarter and year were highlighted by:

  • Increased profitability driven by improved asset quality
  • Nonperforming assets declined 63 percent from a year ago; currently represent only 0.7 percent of total assets
  • Level of loans in the 30- to 89-days delinquent category were negligible throughout 2013
  • New term loan originations of approximately $62 million during the fourth quarter and $230 million during the full year
  • Net interest margin remained well-above historical average levels
  • Announced first quarter cash dividend of $0.12 per common share, reflecting a current annual yield of approximately 2.3 percent
  • Definitive merger agreement signed with Firstbank Corporation; shareholders of both companies overwhelmingly voted to approve merger

"Mercantile delivered very strong performance through all of 2013, continuing our growth trajectory for a fourth consecutive year," said Michael Price, Chairman and CEO of Mercantile.  "Over the past several years, Mercantile has demonstrated consistent leadership in our markets by delivering strong operating results and gains in financial strength in an improving regional economy. We are encouraged by what we are seeing in new business development in our markets and we are confident that significant opportunities await our bank in 2014 as we consummate the pending merger."

Operating Results

Total revenue, which consists of net interest income and noninterest income, was $14.3 million during the fourth quarter of 2013, up $0.5 million or 3.5 percent from the prior-year fourth quarter. The increase in total revenue resulted from higher net interest income, which more than offset lower noninterest income. Net interest income during the fourth quarter of 2013 was $12.7 million, up $1.0 million or 8.2 percent from the fourth quarter of 2012, reflecting a 2.8 percent increase in average earning assets and an 18 basis point increase in the net interest margin. Total revenue was $54.3 million during the full year 2013, down $0.4 million or 0.7 percent from 2012. The decrease in total revenue resulted from lower noninterest income, which more than offset higher net interest income. Net interest income was $47.5 million in 2013, up $0.8 million or 1.6 percent from the prior year, reflecting a six basis point increase in the net interest margin, which more than offset a slight decrease in average earning assets. The yield on average earning assets was relatively stable throughout 2013 as the collection of unaccrued interest on nonaccrual commercial loan relationships that were paid off and commercial loan prepayment fees substantially offset the high level of lower-yielding federal funds sold. The cost of funds declined during 2013 mainly due to maturing fixed-rate certificates of deposit being renewed at lower rates, replaced by lower-costing funds, or allowed to runoff.

Noninterest income during the fourth quarter of 2013 was $1.6 million, down 22.9 percent from the prior-year fourth quarter. Noninterest income for 2013 was $6.9 million, down 14.0 percent from 2012. The decrease in noninterest income during the 2013 periods primarily resulted from lower rental income on foreclosed properties, as many such properties have been sold, and reduced residential mortgage banking fee income.

Mercantile recorded a negative $2.5 million provision for loan losses during the fourth quarter of 2013 and a negative $7.2 million provision during 2013 compared to a $0.3 million provision and a negative $3.1 million provision during the respective 2012 periods.  The negative provision expense is the result of several factors, including continued progress in loan recoveries and collections, a reduced level of loan-rating downgrades and ongoing loan-rating upgrades as the quality of the loan portfolio continues to improve. Loan recoveries totaled $2.5 million during the fourth quarter of 2013, while loan charge-offs not specifically reserved for in prior periods amounted to $0.6 million, resulting in a net positive impact of $1.9 million on provision expense.  Loan recoveries totaled $6.6 million during 2013, while loan charge-offs not specifically reserved for in prior periods amounted to $1.4 million, resulting in a net positive impact of $5.2 million on provision expense.

Noninterest expense totaled $9.1 million during the fourth quarter of 2013, down 1.0 percent from the prior-year fourth quarter. Noninterest expense for 2013 was $36.4 million, down 8.1 percent from 2012. Costs associated with the administration and resolution of problem assets, including legal expenses, property tax payments, appraisal costs and write-downs on foreclosed properties, totaled negative $0.2 million during the fourth quarter of 2013 and $0.6 million during 2013 compared to $0.9 million and $5.9 million during the respective 2012 periods.  Gains on sales of other real estate, which are netted against problem asset costs, totaled $0.6 million during the fourth quarter of 2013 compared to $0.7 million during the fourth quarter of 2012 and $2.3 million during 2013 compared to $1.3 million during 2012. The reduction in problem asset costs reflects the continuation of Mercantile's aggressive approach to managing and resolving problem assets. Pre-tax merger-related costs totaled $0.5 million during the fourth quarter of 2013 and $1.2 million during 2013.

Mr. Price continued: "We remain particularly pleased with the improvement in the financial performance of our loan portfolio.  In 2013, we recorded a $7.2 million negative provision in large part reflecting significant recoveries and reductions in nonperforming and other stressed lending relationships.  We will continue our efforts to strengthen the makeup of our loan portfolio while taking advantage of new business opportunities presented by improving economic conditions in our markets.  We will strive to remain flexible and opportunistic as we pursue disciplined growth for long-term performance." 

Balance Sheet

As of December 31, 2013, total assets were $1.43 billion, an increase of $4.0 million or 0.3 percent from December 31, 2012; total loans increased $12.1 million, or 1.2 percent, to $1.05 billion over the same time period.  Approximately $62 million and $230 million in new term loans to new and existing borrowers were originated during the fourth quarter and full year 2013, respectively, as continuing relationship building efforts have led to increased lending opportunities. 

Commercial-related real estate loans continue to comprise a majority of Mercantile's loan portfolio, representing approximately 66 percent of total loans as of December 31, 2013.  Non-owner occupied commercial real estate ("CRE") loans, comprising 34.6 percent of total loans as of December 31, 2013, increased 12.1 percent during the last twelve months.  Owner-occupied CRE loans, equaling 24.9 percent of total loans at the end of the current year, increased 1.0 percent since December 31, 2012.  Commercial and industrial loans, representing 27.2 percent of total loans as of December 31, 2013, increased slightly during 2013.

LOAN COMPOSITION












($000s)


12/31/13


9/30/13


6/30/13


3/31/13


12/31/12












Commercial:











   Commercial & Industrial

$

286,373

$

286,887

$

279,300

$

272,890

$

285,322

   Land Development &











      Construction


36,741


40,741


42,170


45,174


48,099

   Owner Occupied CRE


261,877


258,656


253,172


253,089


259,277

   Non-Owner Occupied CRE


364,066


368,301


357,452


327,776


324,886

   Multi-Family & Residential











      Rental Properties


37,639


53,178


53,522


50,035


50,922

         Total Commercial


986,696


1,007,763


985,616


948,964


968,506












Retail:











   1-4 Family Mortgages


31,467


31,149


35,709


35,735


33,766

   Home Equity & Other











      Consumer Loans


35,080


36,575


37,337


38,257


38,917

         Total Retail


66,547


67,724


73,046


73,992


72,683












      Total

$

1,053,243

$

1,075,487

$

1,058,662

$

1,022,956

$

1,041,189

Mercantile has continued its efforts to improve liquidity by growing local deposits and reducing wholesale funding.  As of December 31, 2013, total deposits were $1.12 billion, down $16.3 million from December 31, 2012.  By comparison, local deposits increased $40.4 million to $906 million over the past year, representing 81.0 percent of total deposits as of December 31, 2013 compared to 76.2 percent at December 31, 2012.  Growth in local deposits was driven primarily by new commercial loan relationships, as well as the introduction of innovative new products, various deposit-gathering initiatives and enhanced advertising and branding campaigns. 

Wholesale funds were $258 million, or 20.9 percent of total funds, as of December 31, 2013, compared to $305 million, or 24.7 percent of total funds, as of December 31, 2012.

Short-term investments, consisting of federal funds sold and interest-bearing bank deposits, averaged $138.1 million during the fourth quarter of 2013.  In addition to its short-term investments, Mercantile had approximately $169 million of borrowing capacity through various established lines of credit to meet potential funding needs, as well as approximately $43 million of unpledged U.S. Government securities as of December 31, 2013.

Asset Quality

Nonperforming assets ("NPAs") at December 31, 2013 were $9.6 million, or 0.7 percent of total assets, compared to $25.9 million as of December 31, 2012, or 1.8 percent of total assets.  This represents a reduction of $16.3 million or 63.1 percent from the end of 2012.

Robert B. Kaminski, Jr., Mercantile's Executive Vice President and Chief Operating Officer, noted: "We remain pleased with the long term trends we have established in improving asset quality and delivering meaningful reductions in nonperforming assets.  These trends reflect our aggressive stance to move troubled assets off our balance sheet.  Nonperforming assets now represent 0.67 percent of our total assets and our 30- to 89-day delinquent loans continue at a nominal level. The entire Mercantile team has worked hard on this initiative, while staying true to our community banking roots, maintaining a steady focus on meeting the needs of our existing customers and driving the growth of new relationships in our markets.  Our markets are competitive, but Mercantile is implementing robust sales programs and marketing initiatives to complement the overall value that we bring to clients.  We believe these efforts are bearing fruit, as evidenced by the $230 million in term loans to new and existing borrowers we originated in 2013." 

Nonperforming loans ("NPLs") totaled $6.7 million as of December 31, 2013, down $12.3 million from the year-ago quarter-end, while foreclosed real estate and repossessed assets declined $4.1 million from the year-ago quarter-end.  As of December 31, 2013, CRE NPLs totaled $1.1 million.  Owner-occupied nonperforming CRE loans accounted for $0.9 million of total CRE NPLs, while investor-owned CRE NPLs accounted for $0.2 million.  Owner-occupied and rental residential NPLs totaled $4.2 million as of December 31, 2013.

NONPERFORMING ASSETS












($000s)


12/31/13


9/30/13


6/30/13


3/31/13


12/31/12

Residential Real Estate:











   Land Development

$

467

$

538

$

936

$

1,370

$

2,362

   Construction


22


89


89


448


476

   Owner Occupied / Rental


4,426


3,078


3,516


4,027


4,812



4,915


3,705


4,541


5,845


7,650












Commercial Real Estate:











   Land Development


481


633


681


755


789

   Construction


0


0


0


0


0

   Owner Occupied 


1,049


1,219


1,566


2,708


3,534

   Non-Owner Occupied


2,108


5,490


6,898


8,722


13,232



3,638


7,342


9,145


12,185


17,555












Non-Real Estate:











   Commercial Assets


1,016


1,111


755


869


734

   Consumer Assets


0


0


1


1


1



1,016


1,111


756


870


735












      Total

$

9,569

$

12,158

$

14,442

$

18,900

$

25,940

 

During the fourth quarter of 2013, Mercantile added $1.9 million of NPAs to its problem asset portfolio, while disposing of $4.5 million mainly through a combination of principal payments and asset sales ($3.9 million) and loan charge-offs ($0.6 million). In total, NPAs decreased by a net $2.6 million, or 21.3 percent, during the fourth quarter of 2013.  During the 12-month period ended December 31, 2013, Mercantile added $3.9 million of problem assets to its NPA portfolio, successfully disposed of $16.5 million, and charged-off or wrote down an additional $3.8 million.  In total, NPAs declined by a net $16.4 million since December 31, 2012.

NONPERFORMING ASSETS RECONCILIATION












($000s)


4Q 2013


3Q 2013


2Q 2013


1Q 2013


4Q 2012












Beginning balance

$

12,158

$

14,442

$

18,900

$

25,940

$

35,942

Additions


1,869


852


495


692


3,691

Returns to performing











   status


0


0


0


0


(37)

Principal payments


(3,073)


(2,362)


(1,988)


(3,512)


(6,960)

Sale proceeds


(796)


(528)


(2,374)


(1,887)


(4,858)

Loan charge-offs


(553)


(56)


(319)


(2,116)


(1,202)

Valuation write-downs


(36)


(190)


(272)


(217)


(636)












      Total

$

9,569

$

12,158

$

14,442

$

18,900

$

25,940












Net loan recoveries were $0.1 million during the fourth quarter of 2013 compared with net loan recoveries of $1.9 million and net loan recoveries of $0.6 million for the linked- and prior-year quarters, respectively. Net loan recoveries totaled $1.3 million during 2013, compared with net loan charge-offs of $4.8 million during 2012.

NET LOAN CHARGE-OFFS (RECOVERIES)












($000s)


4Q 2013


3Q 2013


2Q 2013


1Q 2013


4Q 2012

Residential Real Estate:











   Land Development

$

(78)

$

(387)

$

(119)

$

690

$

(119)

   Construction


0


0


0


0


0

   Owner Occupied / Rental


(144)


(105)


(301)


479


16



(222)


(492)


(420)


1,169


(103)












Commercial Real Estate:











   Land Development


0


0


30


(210)


55

   Construction


0


0


0


0


0

   Owner Occupied 


47


(74)


(6)


54


515

   Non-Owner Occupied


1,206


(1,215)


79


61


(112)



1,253


(1,289)


103


(95)


458












Non-Real Estate:











   Commercial Assets


(1,154)


(172)


(95)


69


(935)

   Consumer Assets


(4)


5


1


(1)


(35)



(1,158)


(167)


(94)


68


(970)












      Total

$

(127)

$

(1,948)

$

(411)

$

1,142

$

(615)

Capital Position

Shareholders' equity totaled $153.3 million as of December 31, 2013, an increase of $6.7 million from year-end 2012. The Bank remains "well-capitalized" with a total risk-based capital ratio of 15.7 percent as of December 31, 2013, compared to 14.7 percent at December 31, 2012.  At December 31, 2013, the Bank had approximately $69 million in excess of the 10.0 percent minimum regulatory threshold required to be considered a "well-capitalized" institution.  Mercantile reported 8,739,108 total shares outstanding at December 31, 2013.

Reflecting the continued strength of Mercantile's operating performance and capital position, on January 16, 2014, the Board of Directors declared a cash dividend of $0.12 per common share, which is payable on March 10, 2014 to shareholders of record on February 10, 2014.

Mr. Price concluded: "While we recorded an outstanding year from virtually every benchmark, we were also making steady progress toward the consummation of our merger with Firstbank Corporation.  We believe that this business combination will bring together two very strong community banks to create a major Michigan financial institution that combines strong customer relationships and a growing pipeline of new business opportunities.  Our expectation is to create a combined business enterprise that can deliver disciplined growth and increasing value to our shareholders, together with improved financial performance, a strong capital position and the capacity to capitalize on new market opportunities in western and central Michigan." 

About Mercantile Bank Corporation

Based in Grand Rapids, Michigan, Mercantile Bank Corporation is the bank holding company for Mercantile Bank of Michigan. Founded in 1997 to provide banking services to businesses, individuals and governmental units, the Bank differentiates itself on the basis of service quality and the expertise of its banking staff. Mercantile has seven full-service banking offices in Grand Rapids, Holland and Lansing, Michigan. 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.

 

Mercantile Bank Corporation







Fourth Quarter 2013 Results







MERCANTILE BANK CORPORATION

CONSOLIDATED BALANCE SHEETS










DECEMBER 31,


DECEMBER 31,


DECEMBER 31,



2013


2012


2011



(Unaudited)


(Audited)


(Audited)

ASSETS







   Cash and due from banks

$

17,149,000

$

20,302,000

$

12,402,000

   Interest-bearing deposit balances


6,389,000


10,822,000


9,641,000

   Federal funds sold


123,427,000


104,879,000


54,329,000

      Total cash and cash equivalents


146,965,000


136,003,000


76,372,000








   Securities available for sale


131,178,000


138,314,000


172,992,000

   Federal Home Loan Bank stock


11,961,000


11,961,000


11,961,000








   Loans


1,053,243,000


1,041,189,000


1,072,422,000

   Allowance for loan losses


(22,821,000)


(28,677,000)


(36,532,000)

      Loans, net


1,030,422,000


1,012,512,000


1,035,890,000








   Premises and equipment, net


24,898,000


25,919,000


26,802,000

   Bank owned life insurance


51,377,000


50,048,000


48,520,000

   Accrued interest receivable


3,649,000


3,874,000


4,403,000

   Other real estate owned and repossessed assets


2,851,000


6,970,000


15,282,000

   Deferred tax asset


17,754,000


22,015,000


26,013,000

   Other assets


5,911,000


15,310,000


14,994,000








      Total assets

$

1,426,966,000

$

1,422,926,000

$

1,433,229,000















LIABILITIES AND SHAREHOLDERS' EQUITY







   Deposits:







      Noninterest-bearing

$

224,580,000

$

190,241,000

$

147,031,000

      Interest-bearing


894,331,000


944,963,000


965,044,000

         Total deposits


1,118,911,000


1,135,204,000


1,112,075,000








   Securities sold under agreements to repurchase


69,305,000


64,765,000


72,569,000

   Federal Home Loan Bank advances


45,000,000


35,000,000


45,000,000

   Subordinated debentures


32,990,000


32,990,000


32,990,000

   Accrued interest and other liabilities


7,435,000


8,377,000


5,596,000

         Total liabilities


1,273,641,000


1,276,336,000


1,268,230,000








SHAREHOLDERS' EQUITY







   Preferred stock, net of discount


0


0


20,331,000

   Common stock


162,999,000


166,074,000


173,979,000

   Retained earnings (deficit)


(4,101,000)


(21,134,000)


(32,639,000)

   Accumulated other comprehensive income (loss)


(5,573,000)


1,650,000


3,328,000

      Total shareholders' equity


153,325,000


146,590,000


164,999,000








      Total liabilities and shareholders' equity

$

1,426,966,000

$

1,422,926,000

$

1,433,229,000

 

 

Mercantile Bank Corporation










Fourth Quarter 2013 Results










MERCANTILE BANK CORPORATION

CONSOLIDATED REPORTS OF OPERATIONS















THREE MONTHS ENDED

THREE MONTHS ENDED

TWELVE MONTHS ENDED

TWELVE MONTHS ENDED


December 31, 2013

December 31, 2012

December 31, 2013

December 31, 2012


(Unaudited)


(Unaudited)



(Unaudited)



(Audited)


Interest income













   Loans, including fees

$

13,980,000


$

13,245,000


$

52,924,000


$

53,898,000


   Investment securities


1,305,000



1,338,000



5,085,000



5,798,000


   Federal funds sold


84,000



76,000



212,000



192,000


   Interest-bearing deposit balances


4,000



7,000



21,000



29,000


      Total interest income


15,373,000



14,666,000



58,242,000



59,917,000















Interest expense













   Deposits


2,179,000



2,556,000



8,912,000



11,137,000


   Short-term borrowings


22,000



27,000



80,000



157,000


   Federal Home Loan Bank advances


154,000



122,000



533,000



993,000


   Other borrowed money


323,000



224,000



1,261,000



929,000


      Total interest expense


2,678,000



2,929,000



10,786,000



13,216,000















      Net interest income


12,695,000



11,737,000



47,456,000



46,701,000















Provision for loan losses


(2,500,000)



300,000



(7,200,000)



(3,100,000)















      Net interest income after













         provision for loan losses


15,195,000



11,437,000



54,656,000



49,801,000















Noninterest income













   Service charges on accounts


377,000



381,000



1,532,000



1,523,000


   Other income


1,214,000



1,682,000



5,340,000



6,471,000


      Total noninterest income


1,591,000



2,063,000



6,872,000



7,994,000















Noninterest expense













   Salaries and benefits


5,204,000



4,973,000



20,298,000



19,367,000


   Occupancy


626,000



554,000



2,547,000



2,501,000


   Furniture and equipment


230,000



288,000



984,000



1,176,000


   Problem asset costs


(188,000)



931,000



595,000



5,862,000


   Merger-related costs


467,000



0



1,246,000



0


   FDIC insurance costs


189,000



306,000



793,000



1,200,000


   Other expense


2,557,000



2,128,000



9,940,000



9,518,000


      Total noninterest expense


9,085,000



9,180,000



36,403,000



39,624,000















      Income before federal income













         tax expense (benefit)


7,701,000



4,320,000



25,125,000



18,171,000















Federal income tax expense (benefit)


2,538,000



1,271,000



8,092,000



5,636,000















      Net income


5,163,000



3,049,000



17,033,000



12,535,000















Preferred stock dividends and accretion


0



0



0



1,030,000















      Net income attributable to













         common shares

$

5,163,000


$

3,049,000


$

17,033,000


$

11,505,000















   Basic earnings per share


$0.59



$0.35



$1.96



$1.33


   Diluted earnings per share


$0.59



$0.35



$1.95



$1.30















   Average basic shares outstanding


8,724,163



8,662,034



8,710,677



8,625,198


   Average diluted shares outstanding


8,735,096



8,674,342



8,724,708



8,849,627


 

 

Mercantile Bank Corporation











Fourth Quarter 2013 Results











MERCANTILE BANK CORPORATION

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)


















Quarterly


Year-To-Date



2013


2013


2013


2013


2012





(dollars in thousands except per share data)

4th Qtr


3rd Qtr


2nd Qtr


1st Qtr


4th Qtr


2013


2012
















EARNINGS















   Net interest income

$

12,695


11,994


11,312


11,454


11,737


47,456


46,701

   Provision for loan losses

$

(2,500)


(1,700)


(1,500)


(1,500)


300


(7,200)


(3,100)

   Noninterest income

$

1,591


1,683


1,772


1,827


2,063


6,872


7,994

   Noninterest expense

$

9,085


9,922


8,813


8,584


9,180


36,403


39,624

   Net income before federal income















      tax expense (benefit)

$

7,701


5,455


5,771


6,197


4,320


25,125


18,171

   Net income

$

5,163


3,453


4,016


4,400


3,049


17,033


12,535

   Net income common shares

$

5,163


3,453


4,016


4,400


3,049


17,033


11,505

   Basic earnings per share

$

0.59


0.40


0.46


0.51


0.35


1.96


1.33

   Diluted earnings per share

$

0.59


0.40


0.46


0.50


0.35


1.95


1.30

   Average basic shares outstanding


8,724,163


8,707,038


8,705,667


8,705,677


8,662,034


8,710,677


8,625,198

   Average diluted shares outstanding


8,735,096


8,725,268


8,718,649


8,718,601


8,674,342


8,724,708


8,849,627
















PERFORMANCE RATIOS















   Return on average assets


1.43%


0.99%


1.18%


1.28%


0.85%


1.22%


0.82%

   Return on average common equity


13.49%


9.15%


10.70%


12.07%


8.27%


11.36%


7.51%

   Net interest margin (fully tax-equivalent)


3.80%


3.76%


3.66%


3.68%


3.62%


3.73%


3.67%

   Efficiency ratio


63.59%


72.55%


67.36%


64.63%


66.52%


67.01%


72.45%

   Full-time equivalent employees


241


239


239


231


232


241


232
















CAPITAL















   Period-ending equity to assets


10.74%


10.54%


11.23%


10.81%


10.30%


10.74%


10.30%

   Tier 1 leverage capital ratio


12.53%


12.57%


12.52%


12.01%


11.31%


12.53%


11.31%

   Tier 1 risk-based capital ratio


14.65%


14.08%


14.17%


14.12%


13.37%


14.65%


13.37%

   Total risk-based capital ratio


15.91%


15.34%


15.43%


15.38%


14.64%


15.91%


14.64%

   Book value per common share

$

17.54


17.21


17.34


17.20


16.84


17.54


16.84

   Cash dividend per common share

$

0.12


0.12


0.11


0.10


0.09


0.45


0.09
















ASSET QUALITY















   Gross loan charge-offs

$

2,408


85


382


2,415


1,469


5,290


12,644

   Net loan charge-offs

$

(127)


(1,948)


(411)


1,142


(615)


(1,344)


4,755

   Net loan charge-offs to average loans


(0.05%)


(0.72%)


(0.16%)


0.45%


(0.24%)


(0.13%)


0.45%

   Allowance for loan losses

$

22,821


25,195


24,947


26,035


28,677


22,821


28,677

   Allowance for loan losses to total loans


2.17%


2.34%


2.36%


2.55%


2.75%


2.17%


2.75%

   Nonperforming loans

$

6,718


8,609


10,526


12,394


18,970


6,718


18,970

   Other real estate and repossessed assets

$

2,851


3,549


3,916


6,506


6,970


2,851


6,970

   Nonperforming assets to total assets


0.67%


0.86%


1.07%


1.36%


1.82%


0.67%


1.82%
















END OF PERIOD BALANCES















   Loans

$

1,053,243


1,075,487


1,058,662


1,022,956


1,041,189


1,053,243


1,041,189

   Total earning assets (before allowance)

$

1,326,198


1,303,952


1,241,945


1,275,325


1,307,165


1,326,198


1,307,165

   Total assets

$

1,426,966


1,422,003


1,343,750


1,385,355


1,422,926


1,426,966


1,422,926

   Deposits

$

1,118,911


1,121,509


1,061,315


1,092,790


1,135,204


1,118,911


1,135,204

   Shareholders' equity

$

153,325


149,834


150,938


149,692


146,590


153,325


146,590
















AVERAGE BALANCES















   Loans

$

1,054,573


1,072,199


1,044,527


1,032,066


1,022,047


1,050,961


1,049,315

   Total earning assets (before allowance)

$

1,335,386


1,274,532


1,253,661


1,278,824


1,299,623


1,285,725


1,288,456

   Total assets

$

1,437,436


1,378,412


1,364,370


1,388,900


1,417,621


1,392,398


1,405,606

   Deposits

$

1,128,103


1,086,253


1,075,761


1,098,996


1,127,706


1,097,328


1,110,512

   Shareholders' equity

$

151,873


149,785


150,478


147,783


146,244


149,990


153,274

 

SOURCE Mercantile Bank Corporation

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