Mercantile Bank (US:MBWM)2024-11-01 12:37Financial 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].