Earnings per share growth and increased commercial term loan originations highlight quarter
GRAND RAPIDS, Mich., July 19, 2016 — Mercantile Bank Corporation (NASDAQ: MBWM) (“Mercantile”) reported net income of $7.4 million, or $0.46 per diluted share, for the second quarter of 2016, compared with net income of $6.6 million, or $0.39 per diluted share, for the respective prior-year period. Net income during the first six months of 2016 totaled $16.0 million, or $0.98 per diluted share, compared to $13.2 million, or $0.78 per diluted share, during the first six months of 2015.
The second quarter was highlighted by:
Strong earnings performance and capital position
Increased net interest margin
Strong asset quality, as reflected by low levels of nonperforming assets and loans in the 30- to 89-days delinquent category
New commercial term loan originations of approximately $193 million
Sustained strength in commercial loan pipeline
“Mercantile continued its solid 2016 performance with an excellent quarter that reflects our bank’s position as an industry leader in our markets,” said Michael Price, Chairman, President and Chief Executive Officer of Mercantile. “Our sound earnings performance and balance sheet and sustained strength in commercial loan originations make us very confident that the strong results achieved during the first half of the year can be extended throughout the remainder of 2016.”
Operating Results
Total revenue, which consists of net interest income and noninterest income, was $31.2 million during the second quarter of 2016, up $2.1 million or 7.2 percent from the prior-year second quarter. Net interest income during the second quarter of 2016 was $27.1 million, up $2.1 million or 8.2 percent from the second quarter of 2015, primarily reflecting an increased net interest margin and a higher level of earning assets.
The net interest margin was 4.01 percent in the second quarter of 2016, up from 3.83 percent in the prior-year second quarter due to an increased yield on average earning assets. The higher yield primarily resulted from both an increased yield on securities and a change in earning asset mix. The increased yield on securities was mainly due to a significant level of accelerated discount accretion on called U.S. Government agency bonds being recorded as interest income. The accelerated discount accretion totaled $1.5 million during the second quarter of 2016 and $1.8 million during the first six months of 2016, positively impacting the net interest margin by 22 basis points and 13 basis points in the respective periods. A nominal level of accelerated discount on called U.S. Government agency bonds was recorded as interest income during the comparable 2015 periods.
The net interest margin has been relatively stable over the past eight quarters, ranging from 3.79 percent to 4.01 percent. Mercantile’s yield on loans has generally declined during this time period, consistent with the industry and primarily due to the ongoing low interest rate environment and competitive industry pressures. In Mercantile’s case, however, the negative impact of the lower loan yield has been largely offset by assets shifting out of the low-yielding securities portfolio and into the higher-yielding loan portfolio, thus capitalizing on an opportunity growing out of the 2014 merger with Firstbank Corporation. Average loans represented about 86 percent of average earning assets during the second quarter of 2016, up from approximately 81 percent during the second quarter of 2015. The reallocation of earning assets strategy was completed during the second quarter of 2016 as the level of investments reached the internal policy guideline.
As indicated in previous quarters, net interest income and the net interest margin during the second quarter of 2016 and the prior-year second quarter were affected by purchase accounting accretion and amortization entries associated with the fair value measurements recorded effective June 1, 2014. An increase in interest income on loans totaling $0.9 million and an increase in interest expense on subordinated debentures totaling $0.2 million were recorded during the second quarter of 2016. An increase in interest income on loans totaling $1.5 million and decreases in interest expense on deposits and FHLB advances aggregating $0.6 million were recorded during the second quarter of 2015. In addition, an increase in interest expense on subordinated debentures totaling $0.2 million was recorded during the same time period. Mercantile expects to continue to record adjustments in interest income on loans and interest expense on subordinated debentures in future periods; however, the adjustments to interest expense on deposits and FHLB advances ended in July and June of 2015, respectively. The resulting increase in interest expense negatively impacted the net interest margin by approximately eight to ten basis points after July 31, 2015.
Mercantile recorded a $1.1 million provision for loan losses during the second quarter of 2016 compared to a negative $0.6 million provision during the respective 2015 period. The provision expense recorded during the second quarter of 2016 primarily reflects ongoing loan growth and increased allocations related to environmental factors, while the negative provision recorded during the prior-year second quarter resulted from multiple factors, including recoveries of previously charged-off loans, reversals of specific reserves, a reduced level of loan-rating downgrades and ongoing loan-rating upgrades.
Noninterest income during the second quarter of 2016 was $4.1 million, up slightly from the $4.0 million in noninterest income recorded during the second quarter of 2015. A higher level of service charges on accounts, in large part reflecting an ongoing project to ensure all depositors are in a product that best meets their needs and is priced appropriately, was substantially offset by decreased mortgage banking income. The decline in mortgage banking income primarily reflects a decreased level of refinance activity.
Noninterest expense totaled $19.2 million during the second quarter of 2016, down $1.2 million or 5.7 percent from the respective 2015 period, primarily due to lower salary and benefit expenses and nonperforming asset costs. Salary and benefit costs totaled $10.8 million during the current-year second quarter, down $0.3 million or 2.5 percent from the prior-year second quarter primarily due to decreased bonus accrual. Nonperforming asset costs during the second quarter of 2016 were $0.3 million lower than the amount expensed during the second quarter of 2015.
Mr. Price continued: “While our net interest margin was positively impacted by the recording of accelerated discount accretion on called U.S. Government agency bonds, we are very pleased with the strength and stability of our core net interest margin, reflecting our continued focus on loan pricing discipline and strong asset quality. Our net interest income is expected to benefit from any further rate hikes initiated by the Federal Open Market Committee in light of our balance sheet structure. We continue to identify opportunities to enhance fee income and are now realizing the full cost savings associated with the cost efficiency program that was announced in the latter part of 2015, both of which should positively impact operating results during the remainder of 2016.”
Balance Sheet
As of June 30, 2016, total assets were $3.00 billion, up $96.4 million or 3.3 percent from December 31, 2015; total loans increased $102 million, or 4.5 percent, to $2.38 billion over the same time period, representing an annualized growth rate of approximately 9 percent. During the twelve months ended June 30, 2016, total loans were up $208 million or 9.6 percent. Approximately $193 million in commercial term loans to new and existing borrowers were originated during the second quarter of 2016, as ongoing sales and relationship building efforts resulted in increased lending opportunities. As of June 30, 2016, unfunded commitments on commercial construction and development loans totaled approximately $92 million, which are expected to be largely funded over the next twelve months.
Robert B. Kaminski, Jr., Executive Vice President and Chief Operating Officer of Mercantile, noted: “As reflected by the increased level of new commercial term loan originations during the second quarter of 2016, our lending staff continues to develop new relationships in our market areas and serve the credit needs of our existing customers. We remain focused on loan pricing discipline and quality, and based on the strength of our current loan pipeline, we are confident that we can continue to grow the portfolio in future periods. We are particularly pleased with the growth of the commercial loan portfolio, and we have recently implemented strategic initiatives to increase our market presence in the residential mortgage and consumer loan areas. These initiatives, including the hiring of loan originators, the introduction of new and enhanced loan products, loan specials, and increased marketing efforts, should positively impact these portfolios in upcoming periods.”
Commercial-related real estate loans continue to comprise a majority of Mercantile’s loan portfolio, representing about 55 percent of total loans as of June 30, 2016. Non-owner occupied commercial real estate (“CRE”) loans and owner-occupied CRE loans equaled approximately 30 percent and 18 percent of total loans, respectively, as of June 30, 2016. Commercial and industrial loans represented approximately 32 percent of total loans as of June 30, 2016.
As of June 30, 2016, total deposits were $2.28 billion, up $4.3 million from December 31, 2015, and $0.9 million from June 30, 2015. Local deposits were up $29.1 million since year-end 2015 and $40.1 million over the past twelve months; growth in local deposits was primarily driven by new commercial loan relationships. Wholesale funds were $275 million, or approximately 11 percent of total funds, as of June 30, 2016, compared to $189 million, or approximately 8 percent of total funds, as of December 31, 2015, and $184 million, or approximately 7 percent of total funds, as of June 30, 2015.
Asset Quality
Nonperforming assets at June 30, 2016 were $6.0 million, compared to $6.3 million as of March 31, 2016, and $6.7 million as of December 31, 2015; at each period-end, nonperforming assets represented 0.2% of total assets. The level of past due loans remains nominal, and the number and aggregate dollar amount of loan relationships on the internal watch list continue to decline. Net loan charge-offs were $0.3 million during the second quarter of 2016, less than $0.1 million in the linked quarter, and $3.9 million in the prior-year second quarter.
Capital Position
Shareholders’ equity totaled $345 million as of June 30, 2016, an increase of $10.8 million from year-end 2015. The Bank’s capital position remains above “well-capitalized” with a total risk-based capital ratio of 13.1 percent as of June 30, 2016, compared to 13.5 percent at December 31, 2015. At June 30, 2016, the Bank had approximately $82 million in excess of the 10.0 percent minimum regulatory threshold required to be considered a “well-capitalized” institution. Mercantile reported 16,271,061 total shares outstanding at June 30, 2016.
As part of a $20 million common stock repurchase program announced in January of 2015, Mercantile repurchased approximately 168,000 shares for $3.7 million, or a weighted average all-in cost per share of $22.23, during the first six months of 2016; since the program’s inception, Mercantile repurchased approximately 956,000 shares, or nearly 6 percent of total shares outstanding at year-end 2014, for $19.5 million, or a weighted average all-in cost per share of $20.38, representing approximately 97 percent of the originally authorized program. Future share repurchases totaling $15.5 million can be made under the program, which was expanded by $15 million earlier this year.
Mr. Price concluded: “Our community banking philosophy, including our focus on building and developing value-added relationships with customers in our market areas, and commitment to meeting growth objectives in a disciplined manner continue to produce strong operating results. We remain committed to increasing shareholder return as reflected by the increased quarterly cash dividend and ongoing common stock repurchase program. We are confident that Mercantile will continue its strong financial performance in the latter half of 2016 and beyond, and we believe that our sound financial condition positions us to meet growth targets and further enhance shareholder value.”
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 $3.0 billion and operates 48 banking offices serving communities in central and western 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
Second Quarter 2016 Results
MERCANTILE BANK CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
JUNE 30,
DECEMBER 31,
JUNE 30,
2016
2015
2015
ASSETS
Cash and due from banks
$
60,087,000
$
42,829,000
$
44,811,000
Interest-earning deposits
46,896,000
46,463,000
83,774,000
Federal funds sold
0
599,000
9,846,000
Total cash and cash equivalents
106,983,000
89,891,000
138,431,000
Securities available for sale
323,452,000
346,992,000
373,446,000
Federal Home Loan Bank stock
8,026,000
7,567,000
7,567,000
Loans
2,379,940,000
2,277,727,000
2,171,832,000
Allowance for loan losses
(17,110,000)
(15,681,000)
(16,561,000)
Loans, net
2,362,830,000
2,262,046,000
2,155,271,000
Premises and equipment, net
45,558,000
46,862,000
47,902,000
Bank owned life insurance
66,537,000
58,971,000
58,409,000
Goodwill
49,473,000
49,473,000
49,473,000
Core deposit intangible
11,228,000
12,631,000
14,061,000
Other assets
25,849,000
29,123,000
31,384,000
Total assets
$
2,999,936,000
$
2,903,556,000
$
2,875,944,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing
$
733,573,000
$
674,568,000
$
612,222,000
Interest-bearing
1,546,145,000
1,600,814,000
1,666,572,000
Total deposits
2,279,718,000
2,275,382,000
2,278,794,000
Securities sold under agreements to repurchase
136,690,000
154,771,000
152,081,000
Federal Home Loan Bank advances
178,000,000
68,000,000
48,000,000
Subordinated debentures
44,494,000
55,154,000
54,813,000
Accrued interest and other liabilities
16,457,000
16,445,000
13,285,000
Total liabilities
2,655,359,000
2,569,752,000
2,546,973,000
SHAREHOLDERS’ EQUITY
Common stock
303,336,000
304,819,000
310,136,000
Retained earnings
38,553,000
27,722,000
18,766,000
Accumulated other comprehensive income
2,688,000
1,263,000
69,000
Total shareholders’ equity
344,577,000
333,804,000
328,971,000
Total liabilities and shareholders’ equity
$
2,999,936,000
$
2,903,556,000
$
2,875,944,000
Mercantile Bank Corporation
Second Quarter 2016 Results
MERCANTILE BANK CORPORATION
CONSOLIDATED REPORTS OF INCOME
(Unaudited)
THREE MONTHS ENDED
THREE MONTHS ENDED
SIX MONTHS ENDED
SIX MONTHS ENDED
June 30, 2016
June 30, 2015
June 30, 2016
June 30, 2015
INTEREST INCOME
Loans, including fees
$
26,887,000
$
25,587,000
$
53,666,000
$
50,898,000
Investment securities
3,197,000
2,012,000
5,250,000
4,234,000
Other interest-earning assets
63,000
64,000
120,000
120,000
Total interest income
30,147,000
27,663,000
59,036,000
55,252,000
INTEREST EXPENSE
Deposits
1,819,000
1,775,000
3,685,000
3,675,000
Short-term borrowings
47,000
39,000
91,000
76,000
Federal Home Loan Bank advances
575,000
151,000
925,000
303,000
Other borrowed money
606,000
657,000
1,353,000
1,308,000
Total interest expense
3,047,000
2,622,000
6,054,000
5,362,000
Net interest income
27,100,000
25,041,000
52,982,000
49,890,000
Provision for loan losses
1,100,000
(600,000)
1,700,000
(1,000,000)
Net interest income after
provision for loan losses
26,000,000
25,641,000
51,282,000
50,890,000
NONINTEREST INCOME
Service charges on accounts
1,090,000
812,000
2,038,000
1,582,000
Credit and debit card income
1,080,000
1,079,000
2,095,000
2,291,000
Mortgage banking income
744,000
999,000
1,342,000
1,687,000
Earnings on bank owned life insurance
298,000
262,000
584,000
548,000
Other income
852,000
869,000
5,091,000
1,607,000
Total noninterest income
4,064,000
4,021,000
11,150,000
7,715,000
NONINTEREST EXPENSE
Salaries and benefits
10,801,000
11,074,000
21,796,000
21,158,000
Occupancy
1,480,000
1,479,000
3,084,000
3,052,000
Furniture and equipment
522,000
596,000
1,047,000
1,220,000
Data processing costs
1,970,000
1,872,000
3,962,000
3,642,000
FDIC insurance costs
365,000
483,000
757,000
960,000
Other expense
4,055,000
4,846,000
8,415,000
9,559,000
Total noninterest expense
19,193,000
20,350,000
39,061,000
39,591,000
Income before federal income
tax expense
10,871,000
9,312,000
23,371,000
19,014,000
Federal income tax expense
3,437,000
2,754,000
7,388,000
5,810,000
Net Income
$
7,434,000
$
6,558,000
$
15,983,000
$
13,204,000
Basic earnings per share
$0.46
$0.39
$0.98
$0.78
Diluted earnings per share
$0.46
$0.39
$0.98
$0.78
Average basic shares outstanding
16,240,966
16,767,393
16,266,311
16,852,002
Average diluted shares outstanding
16,268,839
16,803,846
16,293,250
16,887,702
Mercantile Bank Corporation
Second Quarter 2016 Results
MERCANTILE BANK CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
Quarterly
Year-To-Date
(dollars in thousands except per share data)
2016
2016
2015
2015
2015
2nd Qtr
1st Qtr
4th Qtr
3rd Qtr
2nd Qtr
2016
2015
EARNINGS
Net interest income
$
27,100
25,882
25,659
25,625
25,041
52,982
49,890
Provision for loan losses
$
1,100
600
500
(500)
(600)
1,700
(1,000)
Noninterest income
$
4,064
7,086
4,046
4,277
4,021
11,150
7,715
Noninterest expense
$
19,193
19,868
20,097
19,693
20,350
39,061
39,591
Net income before federal income
tax expense
$
10,871
12,500
9,108
10,709
9,312
23,371
19,014
Net income
$
7,434
8,549
6,480
7,336
6,558
15,983
13,204
Basic earnings per share
$
0.46
0.52
0.40
0.45
0.39
0.98
0.78
Diluted earnings per share
$
0.46
0.52
0.40
0.45
0.39
0.98
0.78
Average basic shares outstanding
16,240,966
16,291,654
16,314,953
16,425,933
16,767,393
16,266,311
16,852,002
Average diluted shares outstanding
16,268,839
16,325,475
16,352,187
16,461,794
16,803,846
16,293,250
16,887,702
PERFORMANCE RATIOS
Return on average assets
1.01%
1.19%
0.88%
1.01%
0.92%
1.10%
0.93%
Return on average equity
8.79%
10.18%
7.79%
8.86%
7.97%
9.48%
8.06%
Net interest margin (fully tax-equivalent)
4.01%
3.92%
3.81%
3.87%
3.83%
3.96%
3.83%
Efficiency ratio
61.59%
60.26%
67.66%
65.86%
70.02%
60.91%
68.73%
Full-time equivalent employees
633
612
639
640
656
633
656
YIELD ON ASSETS / COST OF FUNDS
Yield on loans
4.60%
4.72%
4.71%
4.79%
4.78%
4.66%
4.81%
Yield on securities
3.99%
2.52%
2.21%
2.16%
2.15%
3.24%
2.16%
Yield on other interest-earning assets
0.51%
0.54%
0.25%
0.25%
0.25%
0.53%
0.25%
Yield on total earning assets
4.45%
4.37%
4.25%
4.30%
4.23%
4.41%
4.24%
Yield on total assets
4.12%
4.03%
3.91%
3.95%
3.89%
4.08%
3.90%
Cost of deposits
0.32%
0.33%
0.34%
0.34%
0.31%
0.33%
0.33%
Cost of borrowed funds
1.42%
1.53%
1.39%
1.37%
1.35%
1.47%
1.35%
Cost of interest-bearing liabilities
0.64%
0.64%
0.61%
0.60%
0.54%
0.64%
0.55%
Cost of funds (total earning assets)
0.44%
0.45%
0.44%
0.43%
0.40%
0.45%
0.41%
Cost of funds (total assets)
0.41%
0.42%
0.40%
0.40%
0.37%
0.42%
0.38%
PURCHASE ACCOUNTING ADJUSTMENTS
Loan portfolio – increase interest income
$
935
1,316
1,074
1,354
1,494
2,251
2,910
Time deposits – reduce interest expense
$
0
0
0
196
587
0
1,175
FHLB advances – reduce interest expense
$
0
0
0
0
11
0
22
Trust preferred – increase interest expense
$
171
171
171
171
171
342
342
Core deposit intangible – increase overhead
$
688
715
715
715
768
1,403
1,562
CAPITAL
Tangible equity to tangible assets
9.66%
9.68%
9.56%
9.44%
9.44%
9.66%
9.44%
Tier 1 leverage capital ratio
11.41%
11.43%
11.56%
11.52%
11.58%
11.41%
11.58%
Common equity risk-based capital ratio
10.73%
10.86%
10.89%
10.95%
10.94%
10.73%
10.94%
Tier 1 risk-based capital ratio
12.31%
12.49%
12.83%
12.94%
12.97%
12.31%
12.97%
Total risk-based capital ratio
12.95%
13.12%
13.45%
13.58%
13.63%
12.95%
13.63%
Tier 1 capital
$
330,710
324,296
329,858
324,911
325,304
330,710
325,304
Tier 1 plus tier 2 capital
$
347,819
340,557
345,539
341,029
341,865
347,819
341,865
Total risk-weighted assets
$
2,685,823
2,596,517
2,570,015
2,511,174
2,509,001
2,685,823
2,509,001
Book value per common share
$
21.18
20.86
20.41
20.20
19.85
21.18
19.85
Tangible book value per common share
$
17.45
17.07
16.61
16.34
16.02
17.45
16.02
Cash dividend per common share
$
0.16
0.16
0.15
0.15
0.14
0.32
0.28
ASSET QUALITY
Gross loan charge-offs
$
397
475
1,266
182
4,383
872
4,831
Recoveries
$
145
456
328
239
494
601
2,352
Net loan charge-offs (recoveries)
$
252
19
938
(57)
3,889
271
2,479
Net loan charge-offs to average loans
0.04%
< 0.01%
0.17%
(0.01%)
0.73%
0.02%
0.23%
Allowance for loan losses
$
17,110
16,262
15,681
16,119
16,561
17,110
16,561
Allowance to originated loans
0.94%
0.94%
0.94%
1.04%
1.10%
0.94%
1.10%
Nonperforming loans
$
5,168
4,842
5,444
8,214
8,103
5,168
8,103
Other real estate/repossessed assets
$
815
1,478
1,293
2,272
2,033
815
2,033
Nonperforming loans to total loans
0.22%
0.21%
0.24%
0.37%
0.37%
0.22%
0.37%
Nonperforming assets to total assets
0.20%
0.22%
0.23%
0.36%
0.35%
0.20%
0.35%
NONPERFORMING ASSETS – COMPOSITION
Residential real estate:
Land development
$
42
30
23
378
380
42
380
Construction
$
319
0
0
0
0
319
0
Owner occupied / rental
$
2,893
2,955
3,515
3,714
3,316
2,893
3,316
Commercial real estate:
Land development
$
125
140
155
170
184
125
184
Construction
$
0
0
0
0
0
0
0
Owner occupied
$
2,263
2,877
2,743
2,741
2,726
2,263
2,726
Non-owner occupied
$
134
151
191
3,193
3,286
134
3,286
Non-real estate:
Commercial assets
$
165
137
69
271
212
165
212
Consumer assets
$
42
30
41
19
32
42
32
Total nonperforming assets
5,983
6,320
6,737
10,486
10,136
5,983
10,136
NONPERFORMING ASSETS – RECON
Beginning balance
$
6,320
6,737
10,486
10,136
27,931
6,737
31,429
Additions – originated loans
$
1,096
1,123
927
1,161
2,972
2,219
3,556
Merger-related activity
$
0
0
656
163
166
0
271
Return to performing status
$
0
0
(48)
0
0
0
(5)
Principal payments
$
(495)
(774)
(3,457)
(567)
(16,414)
(1,269)
(19,617)
Sale proceeds
$
(642)
(402)
(1,300)
(319)
(220)
(1,044)
(758)
Loan charge-offs
$
(261)
(356)
(172)
(65)
(4,236)
(617)
(4,607)
Valuation write-downs
$
(35)
(8)
(355)
(23)
(63)
(43)
(133)
Ending balance
$
5,983
6,320
6,737
10,486
10,136
5,983
10,136
LOAN PORTFOLIO COMPOSITION
Commercial:
Commercial & industrial
$
750,136
714,612
696,303
643,118
622,073
750,136
622,073
Land development & construction
$
40,529
39,630
45,120
47,734
47,622
40,529
47,622
Owner occupied comm’l R/E
$
438,798
441,662
445,919
427,016
422,354
438,798
422,354
Non-owner occupied comm’l R/E
$
716,930
666,013
644,351
636,227
603,724
716,930
603,724
Multi-family & residential rental
$
113,361
112,533
115,003
123,525
124,658
113,361
124,658
Total commercial
$
2,059,754
1,974,450
1,946,696
1,877,620
1,820,431
2,059,754
1,820,431
Retail:
1-4 family mortgages
$
189,119
185,535
190,385
193,003
201,907
189,119
201,907
Home equity & other consumer
$
131,067
135,683
140,646
146,765
149,494
131,067
149,494
Total retail
$
320,186
321,218
331,031
339,768
351,401
320,186
351,401
Total loans
$
2,379,940
2,295,668
2,277,727
2,217,388
2,171,832
2,379,940
2,171,832
END OF PERIOD BALANCES
Loans
$
2,379,940
2,295,668
2,277,727
2,217,388
2,171,832
2,379,940
2,171,832
Securities
$
331,478
351,372
354,559
374,740
381,013
331,478
381,013
Other interest-earning assets
$
46,896
62,814
47,062
60,106
93,620
46,896
93,620
Total earning assets (before allowance)
$
2,758,314
2,709,854
2,679,348
2,652,234
2,646,465
2,758,314
2,646,465
Total assets
$
2,999,936
2,926,056
2,903,556
2,881,377
2,875,944
2,999,936
2,875,944
Noninterest-bearing deposits
$
733,573
678,100
674,568
619,125
612,222
733,573
612,222
Interest-bearing deposits
$
1,546,145
1,587,022
1,600,814
1,635,004
1,666,572
1,546,145
1,666,572
Total deposits
$
2,279,718
2,265,122
2,275,382
2,254,129
2,278,794
2,279,718
2,278,794
Total borrowed funds
$
362,665
308,148
281,830
284,919
258,599
362,665
258,599
Total interest-bearing liabilities
$
1,908,810
1,895,170
1,882,644
1,919,923
1,925,171
1,908,810
1,925,171
Shareholders’ equity
$
344,577
338,553
333,804
328,820
328,971
344,577
328,971
AVERAGE BALANCES
Loans
$
2,342,333
2,273,960
2,243,856
2,201,124
2,147,040
2,308,147
2,133,329
Securities
$
340,866
354,499
362,390
378,286
404,311
347,681
422,246
Other interest-earning assets
$
49,365
42,008
75,111
64,027
89,357
45,687
88,493
Total earning assets (before allowance)
$
2,732,564
2,670,467
2,681,357
2,643,437
2,640,708
2,701,515
2,644,068
Total assets
$
2,952,184
2,892,229
2,909,210
2,876,671
2,865,427
2,922,207
2,869,863
Noninterest-bearing deposits
$
702,293
652,338
656,475
621,324
591,500
677,316
574,645
Interest-bearing deposits
$
1,548,509
1,588,930
1,631,218
1,652,306
1,681,437
1,568,719
1,702,444
Total deposits
$
2,250,802
2,241,268
2,287,693
2,273,630
2,272,937
2,246,035
2,277,089
Total borrowed funds
$
347,191
299,956
276,585
263,264
251,996
323,573
251,708
Total interest-bearing liabilities
$
1,895,700
1,888,886
1,907,803
1,915,570
1,933,433
1,892,292
1,954,152
Shareholders’ equity
$
339,357
336,870
330,032
328,332
330,126
338,113
330,402
CONTACT:
Michael Price, Chairman, President & CEO, 616-726-1600, mprice@mercbank.com
Charles Christmas, Executive Vice President & CFO, 616-726-1202, cchristmas@mercbank.com
The post Mercantile Bank Corporation Reports Strong Second Quarter 2016 Results appeared first on Lambert, Edwards & Associates.