Financial Performance - Net income for the three months ended September 30, 2024, was $19,618 thousand, a decrease of 5.9% compared to $20,855 thousand for the same period in 2023[7]. - Basic earnings per share for the three months ended September 30, 2024, was $1.22, down from $1.30 in the same period last year, indicating a decline of 6.2%[7]. - Net income for the nine months ended September 30, 2024, was $59,967 thousand, down from $62,187 thousand for the same period in 2023[11]. - Comprehensive income for the three months ended September 30, 2024, was $36,747 thousand, significantly up from $8,784 thousand in the same period last year[9]. - Noninterest income for the nine months ended September 30, 2024, was $30,217 thousand, a significant increase of 26.5% compared to $23,842 thousand for the same period in 2023[7]. Asset and Liability Growth - Total assets increased to $5,917,127 thousand as of September 30, 2024, up from $5,353,224 thousand at December 31, 2023, representing a growth of 10.5%[6]. - Total liabilities increased to $5,333,816 thousand as of September 30, 2024, up from $4,831,079 thousand at December 31, 2023, marking a rise of 10.4%[6]. - Shareholders' equity grew to $583,311 thousand as of September 30, 2024, compared to $522,145 thousand at December 31, 2023, reflecting an increase of 11.7%[6]. - Total deposits reached $4,455,898 thousand as of September 30, 2024, an increase of 14.2% from $3,900,918 thousand at December 31, 2023[6]. Loan Portfolio - Loans, net increased to $4,496,428 thousand as of September 30, 2024, compared to $4,253,844 thousand at December 31, 2023, reflecting a growth of 5.7%[6]. - Total loans increased to $4.55 billion as of September 30, 2024, up from $4.30 billion at December 31, 2023, representing a growth of $249 million or 5.8%[79]. - The commercial loan segment reached $3.65 billion as of September 30, 2024, reflecting a 6.8% increase from $3.42 billion at December 31, 2023[80]. - Total retail loans amounted to $904.7 million as of September 30, 2024, a slight increase of 1.8% from $888.5 million at December 31, 2023[80]. Credit Losses and Provisions - Provision for credit losses for the three months ended September 30, 2024, was $1,100 thousand, a decrease of 66.7% compared to $3,300 thousand for the same period in 2023[7]. - The provision for credit losses remained stable at $5,900,000 for both periods[20]. - The allowance for credit losses was $56.590 million, reflecting an increase from $49.914 million as of December 31, 2023, which is a rise of approximately 13.4%[110]. - The company recorded a provision for credit losses of $7.147 million for the current period, compared to a provision of $5.900 million in the previous year, marking an increase of approximately 21.1%[110]. Cash Flow and Investments - Net cash from operating activities decreased to $41,260,000, down 44.0% from $73,912,000 in the same period last year[20]. - Net cash for investing activities was $(322,475,000), compared to $(197,051,000) for the nine months ended September 30, 2023[23]. - Net cash from financing activities increased to $479,228,000, up 64.0% from $292,354,000 in the previous year[23]. - Cash and cash equivalents at the end of the period were $328,546,000, an increase from $265,987,000 at the end of September 30, 2023[23]. Securities and Fair Value - As of September 30, 2024, the total amortized cost of available for sale securities was $749.09 million, with a fair value of $703.375 million, reflecting unrealized losses of $49.565 million[69]. - The total fair value of mortgage-backed securities was $27.6 million as of September 30, 2024, with an amortized cost of $32.549 million[69]. - The total unrealized loss for available for sale securities was $66.112 million at December 31, 2023, compared to $49.565 million at September 30, 2024[66]. - The fair value of interest rate swaps was $29,646 thousand as of September 30, 2024, compared to $27,505 thousand as of December 31, 2023, indicating an increase of approximately 7.8%[146]. Capital Adequacy - The bank's total capital to risk-weighted assets ratio as of September 30, 2024, was 14.1%, exceeding the minimum requirement of 8.0%[166]. - The bank's Tier 1 capital to risk-weighted assets ratio as of September 30, 2024, was 11.4%, above the minimum requirement of 6.0%[166]. - The bank's common equity Tier 1 capital to risk-weighted assets ratio as of September 30, 2024, was 10.5%, surpassing the minimum requirement of 4.5%[166]. - The bank declared a cash dividend of $0.36 per share, payable on December 18, 2024, to shareholders of record as of December 6, 2024[172].

Things have been going quite well for shareholders of Mercantile Bank Corporation (NASDAQ: MBWM ). On October 15th, shares of the company jumped by 2.7% after management announced financial results covering the third quarter of the company's Crude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential. Subscribers get to use a 50+ stock model account, in-d ...

For the quarter ended September 2024, Mercantile Bank (MBWM) reported revenue of $57.96 million, down 0.4% over the same period last year. EPS came in at $1.22, compared to $1.30 in the year-ago quarter. The reported revenue represents a surprise of +1.98% over the Zacks Consensus Estimate of $56.83 million. With the consensus EPS estimate being $1.18, the EPS surprise was +3.39%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall ...

Robust local deposit and commercial loan growth and sustained strength in asset quality metrics highlight quarter GRAND RAPIDS, Mich., Oct. 15, 2024 /PRNewswire/ -- Mercantile Bank Corporation (NASDAQ: MBWM) ("Mercantile") reported net income of $19.6 million, or $1.22 per diluted share, for the third quarter of 2024, compared with net income of $20.9 million, or $1.30 per diluted share, for the third quarter of 2023. Net income during the first nine months of 2024 totaled $60.0 million, or $3.72 per dilute ...

Financial Data and Key Metrics Changes - The bank's net income for Q2 2024 was $18.8 million or $1.17 per diluted share, down from $20.4 million or $1.27 per diluted share in the same period last year [17] - For the first six months of 2024, net income totaled $40.3 million or $2.50 per diluted share, compared to $41.3 million or $2.58 per diluted share in the first half of 2023 [18] - The total risk-based capital ratio decreased from 13.9% to 12.9%, while the Tier 1 leverage capital ratio declined from 12.2% to 11.3% [3][3] Business Line Data and Key Metrics Changes - Total net interest income grew by 40% in the first half of 2024 compared to the same period in 2023, with mortgage banking income increasing by 76% [14][49] - Interest income on loans increased due to a higher interest rate environment and solid growth in commercial and residential mortgage loans [19] - The loan-to-deposit ratio improved to 107% as of June 30, 2024, down from 110% at year-end 2023, with deposit growth outpacing loan growth [11] Market Data and Key Metrics Changes - The cost of deposits increased by 106 basis points compared to Q2 2023, with average deposits up nearly 13% [28] - Interest income on securities and interest-earning deposits also increased due to a higher interest rate environment [26] - The bank's asset quality remained strong, with non-performing assets totaling $9.1 million, representing 16 basis points of total assets [12] Company Strategy and Development Direction - The bank aims to reduce its loan-to-deposit ratio to the mid-90% range through a three-pronged approach focusing on public and municipal banking, small business banking, and retail customer growth [45] - The strategy includes growing local deposits, which increased by approximately $260 million in the first half of 2024, reflecting a 14% annualized growth rate [47] - The bank is also focusing on maintaining a strong capital position while navigating the challenges in the financial environment [5][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's ability to navigate challenges and maintain a strong financial condition [5] - The bank expects continued loan growth in the range of 4% to 6% and a stable net interest margin between 3.50% and 3.60% for the third and fourth quarters [39] - Management noted that the competitive environment for deposits has stabilized, with no significant increases in deposit pricing expected [25] Other Important Information - The bank recorded a provision expense of $3.5 million for Q2 2024, primarily due to a specific allocation for a non-performing commercial loan [34] - Non-interest expenses increased by $1.9 million and $3.3 million during Q2 and the first half of 2024, respectively, largely due to higher salary and benefit costs [37] Q&A Session Summary Question: Loan to Deposit Ratio Target - The management does not focus on a specific timeframe for achieving the loan-to-deposit ratio target, emphasizing the need to grow the loan portfolio in line with market demand [9] Question: Deposit Competition - Management acknowledged that the transfer from non-interest-bearing deposits has slowed, and commercial customers are now more focused on cash management [22][24] Question: Credit Quality and Reserves - A specific allocation for a non-performing commercial loan relationship drove the increase in reserves, but management does not expect systemic issues in the portfolio [55][56] Question: Future Provisioning - Management indicated that the average provision expense from the first and second quarters would be a reasonable expectation moving forward [57] Question: Capital Management and Buyback Program - The bank is focused on preserving capital and is not expected to initiate a buyback program at current stock levels, despite recent stock performance [90]

Financial Performance - Net revenue for Q2 2024 was $56.8 million, an increase of $1.6 million or 2.8% from $55.2 million in Q2 2023[2] - Net income for Q2 2024 was $18.8 million, or $1.17 per diluted share, compared to $20.4 million, or $1.27 per diluted share in Q2 2023[16] - Net income for Q2 2024 was $18.8 million, a decrease from $20.4 million in Q2 2023[32] - Basic earnings per share were $1.17 in Q2 2024, down from $1.27 in Q2 2023[32] - Net interest income decreased to $47.1 million, down $0.5 million or 1.0% from $47.6 million in Q2 2023, primarily due to increased cost of funds[2] - Noninterest income rose to $9.7 million, up $2.0 million or 26.6% from $7.7 million in Q2 2023, driven by higher mortgage banking income and service charges[4] Asset and Loan Growth - Total assets increased to $5.60 billion, up $249 million from $5.35 billion at the end of 2023[6] - Total loans grew by $134 million or an annualized 6.3% in the first half of 2024, with commercial loans increasing by $118 million or 6.9%[6] - Total loans amounted to $4.438 billion, a slight increase from $4.051 billion in the prior period, indicating a growth of about 9.6%[33] - The commercial loan portfolio reached $1.275 billion, showing a growth compared to the previous quarter's $1.229 billion[33] - The average balance of loans was reported at $4.39 billion, indicating a robust lending activity[1] Deposits and Funding - Total deposits increased by $246 million, or an annualized 12.6%, reaching $4.15 billion as of June 30, 2024[24] - Interest-bearing deposits totaled $3.026 billion, reflecting a decrease from $3.385 billion, indicating a decline of approximately 10.6%[33] - Non-interest-bearing deposits amounted to $1.13 billion, showcasing a strong liquidity position[1] - Total borrowed funds stood at $789.327 million, consistent with the previous quarter's figures[33] Credit Quality and Provisions - Nonperforming assets totaled $9.1 million, or 0.2% of total assets, an increase from $3.6 million or less than 0.1% at the end of 2023[8] - Provisions for credit losses rose to $3.5 million in Q2 2024 from $2.0 million in Q2 2023[20] - Nonperforming loans increased to $9,129,000 in Q2 2024 from $6,040,000 in Q1 2024[39] - The allowance for credit losses rose to $55,408,000 in Q2 2024 from $51,638,000 in Q1 2024[39] Capital and Shareholder Returns - The bank's capital position remains strong, with excess capital over the minimum regulatory requirement approximating $151 million[9] - Shareholders' equity increased by $29 million to $551 million as of June 30, 2024[26] - The bank plans to continue its regular quarterly cash dividend program, reflecting its commitment to providing competitive returns to shareholders[10] - Cash dividend per common share remained stable at $0.35 in both Q2 2024 and Q1 2024[39] Efficiency and Cost Management - Noninterest expense totaled $29.7 million in Q2 2024, up from $27.8 million in Q2 2023, primarily due to higher salary costs and data processing expenses[21] - The efficiency ratio for Q2 2024 was 52.40%, an increase from 51.42% in Q1 2024[39] Market Strategy and Future Plans - The company plans to expand its market presence through strategic acquisitions and new product developments in the upcoming quarters[33] - The bank aims to expand its market presence while maintaining exceptional service standards[35] - The bank's commitment to community service and personalized financial products distinguishes it in the Michigan banking sector[35]

Over the last four quarters, the company has surpassed consensus EPS estimates three times. Mercantile Bank shares have added about 9.3% since the beginning of the year versus the S&P 500's gain of 18.1%. Mercantile Bank, which belongs to the Zacks Banks - Midwest industry, posted revenues of $56.75 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.93%. This compares to year-ago revenues of $55.2 million. The company has topped consensus revenue estimates four times over ...

Strong local deposit and commercial loan growth and ongoing strength in asset quality metrics highlight quarter Second quarter highlights include: Net revenue, consisting of net interest income and noninterest income, was $56.8 million during the second quarter of 2024, up $1.6 million, or 2.8 percent, from $55.2 million during the prior-year second quarter. Net interest income during the current-year second quarter was $47.1 million, down $0.5 million, or 1.0 percent, from $47.6 million during the respecti ...

"The Board of Directors' declaration of an increased third quarter cash dividend is a testament to our ongoing commitment to enhance shareholder value through worthwhile cash returns," said Ray Reitsma, President and Chief Executive Officer of Mercantile. "Our financial metrics have remained strong during the lengthy period of uncertain economic and operating conditions, which coupled with the realization of solid financial results in future periods as anticipated, should allow us to continue to reward shar ...

Wall Street analysts forecast that Mercantile Bank (MBWM) will report quarterly earnings of $1.17 per share in its upcoming release, pointing to a year-over-year decline of 7.9%. It is anticipated that revenues will amount to $56.23 million, exhibiting an increase of 1.9% compared to the year-ago quarter. The current level reflects an upward revision of 1.3% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraise ...