Mercantile Bank (MBWM) came out with quarterly earnings of $1.34 per share, beating the Zacks Consensus Estimate of $1.14 per share. This compares to earnings of $1.31 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 17.54%. A quarter ago, it was expected that this holding company for Mercantile Bank of Michigan would post earnings of $1.22 per share when it actually produced earnings of $1.25, delivering a surprise of 2.46%.Ov ...

Strong local deposit growth, sustained strength in asset quality metrics and noteworthy increases in several noninterest revenue streams highlight quarter GRAND RAPIDS, Mich., April 16, 2024 /PRNewswire/ -- Mercantile Bank Corporation (NASDAQ: MBWM) ("Mercantile") reported net income of $21.6 million, or $1.34 per diluted share, for the first quarter of 2024, compared with net income of $21.0 million, or $1.31 per diluted share, for the first quarter of 2023. "We are delighted to report another quarter of e ...

Board declares $0.35 regular quarterly cash dividend on common stock, providing for a current annual yield of approximately 3.9 percent  GRAND RAPIDS, Mich., April 16, 2024 /PRNewswire/ -- Mercantile Bank Corporation (NASDAQ: MBWM) ("Mercantile") announced today that on April 11, 2024, its Board of Directors declared a regular quarterly cash dividend of $0.35 per common share, payable on June 19, 2024, to holders of record as of June 7, 2024.  The $0.35 cash dividend is approximately 6 percent higher than t ...

Part I [Business](index=3&type=section&id=Item%201.%20Business) Mercantile Bank Corporation, a Michigan-based bank holding company, provides commercial and retail banking services across 43 locations, focusing on small- to medium-sized businesses - Mercantile Bank Corporation is a Michigan-registered bank holding company, with Mercantile Bank as its primary subsidiary, becoming a financial holding company in April 2014[10](index=10&type=chunk) - Mercantile Bank, a state-chartered bank, operates **43 offices** primarily serving small- to medium-sized businesses and retail customers in West and Central Michigan[11](index=11&type=chunk) - As of December 31, 2023, the company employed **665 individuals** (631 full-time, 34 part-time), emphasizing human capital and DEI initiatives[24](index=24&type=chunk) - The company's ESG Committee has driven sustainability efforts, reducing natural gas use by **29%** and electricity by **39%** over five years, with eStatement adoption nearing **60%** by year-end 2023[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) Commercial Real Estate Loan Portfolio Composition (as of Dec 31) | Category | 2023 Balance (in thousands USD) | % of Total | 2022 Balance (in thousands USD) | % of Total | | :--- | :--- | :--- | :--- | :--- | | **Real estate – owner occupied** | $717,667 | 16.7% | $639,192 | 16.3% | | **Real estate – non-owner occupied** | $1,035,684 | 24.1% | $979,214 | 25.0% | | Office (non-owner occupied) | $271,448 | 6.3% | $324,227 | 8.3% | | **Vacant land, land development, and residential construction** | $74,753 | 1.7% | $61,873 | 1.6% | | **Real estate – multi-family and residential rental** | $332,609 | 7.7% | $266,468 | 6.8% | | **Total Commercial Real Estate Loans** | **$2,160,713** | **50.2%** | **$1,946,747** | **49.7%** | - Total commercial real estate loans represented **247%** of total regulatory capital as of December 31, 2023 and 2022, remaining below the **300%** regulatory guideline[40](index=40&type=chunk) - Asset quality remained strong, with nonaccrual loans decreasing to **$3.4 million** (**0.1%** of total loans) at year-end 2023 from **$7.7 million** (**0.2%** of total loans) at year-end 2022[50](index=50&type=chunk) [Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) The company faces multiple risks including interest rate sensitivity, liquidity concerns, commercial real estate exposure, intense competition, cybersecurity threats, and regulatory changes - **Interest Rate Risk:** Earnings are highly dependent on net interest income and sensitive to Federal Reserve policies, where rising rates can increase defaults and negatively impact the economy[61](index=61&type=chunk)[62](index=62&type=chunk) - **Liquidity Risk:** Approximately **49%** of the company's deposits were uninsured as of December 31, 2023, posing a significant withdrawal risk, especially given recent financial institution failures[64](index=64&type=chunk) - **Commercial Real Estate Risk:** Approximately **50%** of the total loan portfolio is in commercial real estate, making it vulnerable to value declines and borrower strain under stressed economic conditions[66](index=66&type=chunk) - **Competition Risk:** The company faces substantial competition from larger financial institutions with greater resources, higher lending limits, and potentially less regulation[69](index=69&type=chunk) - **Cybersecurity Risk:** Constant threats of cyber-attacks pose risks of data loss, reputational damage, regulatory penalties, and financial losses, with remote work introducing additional vulnerabilities[99](index=99&type=chunk)[100](index=100&type=chunk) - **Regulatory Risk:** The banking industry is subject to extensive and changing regulation, where minimum capital requirements could impact dividend payments or necessitate dilutive capital raises[103](index=103&type=chunk)[104](index=104&type=chunk) [Unresolved Staff Comments](index=22&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company has no unresolved written comments from the SEC staff issued 180 days or more before the end of its 2023 fiscal year - There are no unresolved written comments from the SEC staff regarding periodic or current reports issued 180 days or more before the end of the 2023 fiscal year[114](index=114&type=chunk) [Cybersecurity](index=23&type=section&id=Item%201C.%20Cybersecurity) The company's cybersecurity program, overseen by the CISO and Board, includes policies and 24/7 third-party monitoring, with no material incidents reported to date - The cybersecurity program is managed by the Chief Information Security Officer (CISO), reporting to the Senior Management Team and Board of Directors[116](index=116&type=chunk)[117](index=117&type=chunk) - The company employs a third-party firm for continuous **24/7** monitoring of its information systems, including intrusion detection and instantaneous alerting[118](index=118&type=chunk) - The Board of Directors annually reviews and approves the Information & Cyber Security Program Policy (ICSPP) and Response Policy (ICSRP), monitoring material risks including cybersecurity[123](index=123&type=chunk)[124](index=124&type=chunk) - To date, cybersecurity threats or incidents have not materially affected the company[122](index=122&type=chunk) Part II [Properties](index=25&type=section&id=Item%202.%20Properties) The company operates 43 banking offices, primarily in Western and Central Michigan, with most facilities owned and considered sufficient for growth - The company operates **43 banking offices**, with its headquarters in Grand Rapids, Michigan[127](index=127&type=chunk) - All banking offices are bank-owned, except for **ten locations** under operating lease agreements[127](index=127&type=chunk) [Legal Proceedings](index=25&type=section&id=Item%203.%20Legal%20Proceedings) The company may be involved in incidental legal proceedings, but management believes none are currently material to its financial condition - Management believes the company is not a party to any legal proceedings material to its financial condition[129](index=129&type=chunk) [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=25&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq under "MBWM", with consistent quarterly cash dividends increasing to $0.35 per share for Q1 2024, and no share repurchases in 2022-2023 - The company's common stock trades on the Nasdaq Global Select Market under the symbol **"MBWM"**, with approximately **1,200 record holders** and **7,000 beneficial owners** as of February 29, 2024[132](index=132&type=chunk) Quarterly Stock Prices and Dividends (2022-2023) | Period | High Price (USD) | Low Price (USD) | Dividend per Share (USD) | | :--- | :--- | :--- | :--- | | **2023** | | | | | First Quarter | $37.00 | $29.39 | $0.33 | | Second Quarter | $31.56 | $23.89 | $0.33 | | Third Quarter | $36.73 | $26.95 | $0.34 | | Fourth Quarter | $41.93 | $30.12 | $0.34 | | **2022** | | | | | First Quarter | $40.01 | $34.93 | $0.31 | | Second Quarter | $36.04 | $30.10 | $0.31 | | Third Quarter | $39.03 | $29.26 | $0.32 | | Fourth Quarter | $36.36 | $30.02 | $0.32 | - A cash dividend of **$0.35 per share** was declared on January 11, 2024, payable on March 13, 2024[139](index=139&type=chunk) - No shares were repurchased during 2022 or 2023 under the stock repurchase program, leaving approximately **$6.8 million** available as of December 31, 2023[140](index=140&type=chunk)[142](index=142&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is incorporated by reference from the Financial Information section - Management's Discussion and Analysis of Financial Condition and Results of Operations is incorporated by reference from a later section of the Annual Report[145](index=145&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023, with no significant changes reported - Management, including the CEO and CFO, concluded the company's disclosure controls and procedures were effective as of December 31, 2023[149](index=149&type=chunk) - Based on the COSO framework, management concluded the company's internal control over financial reporting was effective as of December 31, 2023[152](index=152&type=chunk) Part III [Directors, Executive Compensation, and Corporate Governance](index=29&type=section&id=Item%2010%2C%2011%2C%2013%2C%2014) Information on directors, executive compensation, and corporate governance is incorporated by reference from the company's definitive Proxy Statement for the May 23, 2024 Annual Meeting of Shareholders - Information for Items 10, 11, 13, and 14 is incorporated by reference from the company's Proxy Statement for the Annual Meeting of Shareholders on May 23, 2024[156](index=156&type=chunk)[157](index=157&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk) [Security Ownership and Equity Compensation Plans](index=30&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information is incorporated by reference from the Proxy Statement, with **393,387** securities available for future issuance under the Stock Incentive Plan of 2023 as of December 31, 2023 Equity Compensation Plan Information (as of Dec 31, 2023) | Plan Category | Securities to be issued upon exercise (a) (units) | Weighted-average exercise price (b) (USD) | Securities remaining available for future issuance (c) (units) | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 0 | $0 | 393,387 | | Equity compensation plans not approved by security holders | 0 | $0 | 0 | | **Total** | **0** | **$0** | **393,387** | - The available securities are under the Stock Incentive Plan of 2023, allowing for awards such as stock options, restricted stock, and stock awards[160](index=160&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=31&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements and exhibits filed as part of the Form 10-K, with Consolidated Financial Statements and Reports of Independent Registered Public Accounting Firms incorporated by reference - The Consolidated Financial Statements, Notes, and Reports of Independent Registered Public Accounting Firms are filed as part of this report and incorporated by reference in Item 8[164](index=164&type=chunk) Financial Information [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=34&type=section&id=Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2023, net income rose to **$82.2 million**, driven by increased net interest income and loan growth, while total assets grew to **$5.35 billion**, maintaining strong asset quality and capital ratios [Financial Overview](index=37&type=section&id=Financial%20Overview) This section provides a high-level summary of the company's financial performance, including net income, diluted EPS, loan growth, and asset quality Key Financial Results | Metric | 2023 (USD) | 2022 (USD) | | :--- | :--- | :--- | | Net Income | $82.2 million | $61.1 million | | Diluted EPS | $5.13 | $3.85 | - The increase in net income was primarily driven by higher net interest income, resulting from an improved net interest margin and strong loan growth[187](index=187&type=chunk) - Commercial loans increased by **$283 million** (**9%**) during 2023, while residential mortgage loans grew by **$120 million** (**17%**)[189](index=189&type=chunk)[190](index=190&type=chunk) - Asset quality remained strong, with nonperforming loans at **0.08%** of total loans and net loan charge-offs of only **$0.1 million** for the year[191](index=191&type=chunk) [Financial Condition](index=39&type=section&id=Financial%20Condition) This section details the company's balance sheet, including asset and liability composition, loan portfolio, allowance for credit losses, and shareholders' equity - Total assets increased by **$481 million** during 2023 to **$5.35 billion**, with total loans growing by **$387 million**, deposits by **$188 million**, and FHLBI advances by **$160 million**[199](index=199&type=chunk) - The allowance for credit losses was **$49.9 million** (**1.16%** of total loans) at year-end 2023, up from **$42.2 million** (**1.08%** of total loans) at year-end 2022[214](index=214&type=chunk)[215](index=215&type=chunk)[220](index=220&type=chunk) - The securities available for sale portfolio increased by **$14.2 million** to **$617 million**, with the net unrealized loss improving to **$63.9 million** from **$82.7 million** at year-end 2022[222](index=222&type=chunk) - Shareholders' equity increased by **$80.7 million** to **$522 million**, driven by **$82.2 million** in net income and a **$14.9 million** decline in the after-tax net unrealized loss on securities, partially offset by **$21.0 million** in cash dividends[234](index=234&type=chunk) [Results of Operations](index=48&type=section&id=Results%20of%20Operations) This section analyzes the company's income statement, focusing on net interest income, provision for credit losses, noninterest income, and noninterest expense - Net interest income increased by **$35.3 million** (**22.3%**) in 2023, driven by a **72 basis point** expansion in the net interest margin to **4.05%**[238](index=238&type=chunk)[239](index=239&type=chunk) - The yield on average earning assets increased significantly to **5.68%** in 2023 from **3.82%** in 2022, primarily due to higher rates on variable-rate commercial loans following FOMC rate hikes[239](index=239&type=chunk) - The cost of funds rose to **1.63%** in 2023 from **0.49%** in 2022, reflecting the higher interest rate environment and a shift towards higher-costing deposit products[239](index=239&type=chunk) - The provision for credit losses was **$7.7 million** in 2023, up from **$6.6 million** in 2022, mainly due to loan growth and slower mortgage prepayment speeds[250](index=250&type=chunk) - Noninterest income remained flat at **$32.1 million**, as growth in card fees and swap income was offset by lower mortgage banking income and service charges[251](index=251&type=chunk) - Noninterest expense increased by **$7.3 million** to **$115 million**, primarily due to a **$3.7 million** increase in salary and benefit costs[198](index=198&type=chunk)[252](index=252&type=chunk) [Capital Resources and Liquidity](index=54&type=section&id=Capital%20Resources%20and%20Liquidity) This section discusses the company's capital adequacy, including regulatory capital ratios, and its liquidity position, detailing funding sources and unfunded commitments - The bank's total risk-based capital ratio was **13.4%** as of December 31, 2023, exceeding the **10.0%** minimum for a "well capitalized" categorization[256](index=256&type=chunk) - Wholesale funds increased to **$636 million** (**13.8%** of total funding) at year-end 2023, up from **$308 million** (**7.3%**) at year-end 2022[258](index=258&type=chunk) - At year-end 2023, the company had **$2.09 billion** in unfunded loan commitments and **$19.4 million** in unfunded standby letters of credit[263](index=263&type=chunk) [Market Risk Analysis](index=56&type=section&id=Market%20Risk%20Analysis) This section analyzes the company's exposure to market risks, primarily interest rate risk, using net interest income simulation to assess sensitivity Net Interest Income Simulation (Next 12 Months) | Interest Rate Scenario | Dollar Change (in thousands USD) | Percent Change | | :--- | :--- | :--- | | Interest rates down 300 bps | $(16,900) | (8.3)% | | Interest rates down 100 bps | $(6,200) | (3.0)% | | Interest rates up 100 bps | $7,100 | 3.5% | | Interest rates up 300 bps | $21,200 | 10.4% | - The company's primary market risk is interest rate risk, measured by net interest income simulation analysis, indicating the company is asset-sensitive[265](index=265&type=chunk)[273](index=273&type=chunk) [Reports of Independent Registered Public Accounting Firms](index=59&type=section&id=Reports%20of%20Independent%20Registered%20Public%20Accounting%20Firms) The report includes unqualified opinions from Plante & Moran, PLLC on 2023 consolidated financial statements and internal control, identifying Allowance for Credit Losses as a critical audit matter - Plante & Moran, PLLC issued an unqualified opinion on the consolidated financial statements for the year ended December 31, 2023[279](index=279&type=chunk) - Plante & Moran, PLLC issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2023[280](index=280&type=chunk)[289](index=289&type=chunk) - The critical audit matter identified was the general reserve portion of the Allowance for Credit Losses (ACL), due to significant judgment in determining qualitative factor adjustments[284](index=284&type=chunk)[285](index=285&type=chunk) - BDO USA, P.C. issued an unqualified opinion on the consolidated financial statements for the two years ended December 31, 2022[297](index=297&type=chunk) [Consolidated Financial Statements](index=64&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show total assets grew to **$5.35 billion** in 2023, driven by loan growth, with net income increasing to **$82.2 million** due to higher net interest income Consolidated Balance Sheet Highlights (as of Dec 31) | (in thousands USD) | 2023 | 2022 | | :--- | :--- | :--- | | Total Assets | $5,353,224 | $4,872,619 | | Loans, net | $4,253,844 | $3,874,373 | | Total Deposits | $3,900,918 | $3,712,811 | | Total Liabilities | $4,831,079 | $4,431,211 | | Total Shareholders' Equity | $522,145 | $441,408 | Consolidated Income Statement Highlights (Year Ended Dec 31) | (in thousands USD) | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Net Interest Income | $193,545 | $158,244 | $124,062 | | Provision for Credit Losses | $7,700 | $6,550 | $(4,300) | | Noninterest Income | $32,143 | $32,077 | $56,220 | | Noninterest Expense | $115,289 | $107,981 | $110,866 | | **Net Income** | **$82,217** | **$61,063** | **$59,021** | [Notes to Consolidated Financial Statements](index=72&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed financial information, including CECL adoption, loan portfolio growth to **$4.30 billion**, increased allowance for credit losses, securities portfolio details, deposit composition shifts, and strong regulatory capital ratios - The company adopted the Current Expected Credit Loss (CECL) model (ASU 2016-13) effective January 1, 2022[393](index=393&type=chunk) Loan Portfolio by Segment (as of Dec 31) | Loan Segment | 2023 Balance (in thousands USD) | % of Total | 2022 Balance (in thousands USD) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Commercial | $3,415,299 | 79.4% | $3,131,830 | 80.0% | | Retail | $888,459 | 20.6% | $784,789 | 20.0% | | **Total Loans** | **$4,303,758** | **100.0%** | **$3,916,619** | **100.0%** | Allowance for Credit Losses Roll-Forward (Year Ended Dec 31, 2023) | (in thousands USD) | Amount | | :--- | :--- | | Beginning Balance (Jan 1, 2023) | $42,246 | | Provision for credit losses | $7,700 | | Charge-offs | $(863) | | Recoveries | $831 | | **Ending Balance (Dec 31, 2023)** | **$49,914** | Deposit Composition (as of Dec 31) | Deposit Type | 2023 Balance (in thousands USD) | % of Total | 2022 Balance (in thousands USD) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Noninterest-bearing checking | $1,247,640 | 32.1% | $1,604,750 | 43.3% | | Interest-bearing checking | $635,790 | 16.3% | $575,028 | 15.5% | | Money market | $957,434 | 24.5% | $776,723 | 20.9% | | Savings | $262,566 | 6.7% | $381,602 | 10.3% | | Time Deposits | $797,488 | 20.4% | $374,708 | 10.1% | | **Total Deposits** | **$3,900,918** | **100.0%** | **$3,712,811** | **100.0%** | Bank Regulatory Capital Ratios (as of Dec 31, 2023) | Ratio | Actual | Minimum to be Well Capitalized | | :--- | :--- | :--- | | Total capital (to risk weighted assets) | 13.4% | 10.0% | | Tier 1 capital (to risk weighted assets) | 12.4% | 8.0% | | Common equity (to risk weighted assets) | 12.4% | 6.5% | | Tier 1 capital (to average assets) | 12.2% | 5.0% |

Mercantile Bank Corporation (NASDAQ:MBWM) Q4 2023 Earnings Conference Call January 16, 2024 10:00 AM ET Company Participants Zack Mukewa - IR, Lambert Global Robert Kaminski - President & CEO Raymond Reitsma - COO & President of the Bank Charles Christmas - EVP & CFO Conference Call Participants Daniel Tamayo - Raymond James Erik Zwick - Hovde Group Damon DelMonte - KBW Operator Good morning, and welcome to the Mercantile Bank Corporation Fourth Quarter 2023 Earnings Results Conference Call. All participant ...

• Laddered maturities generally on U.S. Government agency and municipal bond segments. 15 As of December 31, 2023 Deposits & Sweep Accounts Large Depositors Includes Sweep Account Balances Governmental – 14 relationships aggregating $0.1 billion Portion with deposits less than $5 million in 2023 FINANCIAL PERFORMANCE ($ in thousands) December 31, 2023 December 31, 2022 19 | --- | --- | --- | |-----------------------------------------|-------|--------------------------------| | Source | | Availability ($ in ...

Table of Contents U.S. SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File No. 000-26719 MERCANTILE BANK CORPORATION (Exact name of registrant as specified in its charter) Michigan 38-3360865 (State or other jurisdi ...

Table of Contents U.S. SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File No. 000-26719 MERCANTILE BANK CORPORATION (Exact name of registrant as specified in its charter) Michigan 38-3360865 (State or other jurisdiction ...

• Significant increase in net interest income depicting net interest margin expansion and loan growth Mercantile® Bank Corporation 62,006,000 36,003,000 119,159,000 69,254,000 33,826,000 93,335,000 64,611,000 Company Overview Executive Management Team | --- | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------- ...

Mercantile Bank Corporation (NASDAQ:MBWM) Q2 2023 Earnings Conference Call July 18, 2023 10:00 AM ET Company Participants Zack Mukewa - Lambert IR Bob Kaminski - President & CEO Ray Reitsma - COO & President of the Bank Chuck Christmas - EVP & CFO Conference Call Participants Brendan Nosal - Piper Sandler Daniel Tamayo - Raymond James Erik Zwick - Hovde Group Damon DelMonte - KBW Operator Good morning, and welcome to the Mercantile Bank Corporation Second Quarter 2023 Earnings Results Conference Call. All p ...