Mercantile Bank (US:MBWM)2025-01-21 14:00Financial Performance - Net income for Q4 2024 was $19.6 million, or $1.22 per diluted share, compared to $20.0 million, or $1.25 per diluted share in Q4 2023[1] - Full-year 2024 net income was $79.6 million, or $4.93 per diluted share, down from $82.2 million, or $5.13 per diluted share in 2023[1] - The net interest margin for 2024 was 3.58 percent, down from 4.05 percent in 2023[8] - The net interest income for the fourth quarter of 2024 was $48.36 million, slightly down from $48.65 million in the same quarter of 2023, reflecting a decrease of 0.6%[31] - Total interest income for the twelve months ended December 31, 2024, was $321.5 million, compared to $271.4 million for the same period in 2023, marking an increase of 18.5%[31] - Basic earnings per share remained stable at $1.22 for both Q4 2024 and Q3 2024[33] - Return on average assets decreased to 1.30% in Q4 2024 from 1.35% in Q3 2024[33] Revenue and Income Sources - Total revenue for 2024 was $231 million, an increase of $5.8 million, or 2.6 percent, from $226 million in 2023[7] - Noninterest income for Q4 2024 was $10.2 million, up $1.9 million, or 22.6 percent, from $8.3 million in Q4 2023[11] - Mercantile Bank's total noninterest income for the twelve months ended December 31, 2024, was $40.39 million, up from $32.14 million in 2023, showing a growth of 25.7%[31] - Noninterest expense for 2024 totaled $126 million, up from $115 million in 2023, primarily due to increased salary and benefit costs[12] Asset and Deposit Growth - Total deposits increased by $797 million, or 20.4 percent, to $4.70 billion as of December 31, 2024[17] - The bank's total deposits increased to $4.70 billion as of December 31, 2024, up from $3.90 billion a year earlier, representing a growth of 20.5%[29] - As of December 31, 2024, Mercantile Bank's total assets reached $6.05 billion, an increase from $5.35 billion as of December 31, 2023, representing a growth of approximately 13.0%[29] - Shareholders' equity totaled $585 million as of December 31, 2024, up $62.4 million from $522.1 million as of December 31, 2023, indicating a year-over-year increase of 12.0%[20] Loan Performance - Commercial loans grew by $292 million, or 8.5 percent, during 2024[14] - The loan-to-deposit ratio improved from 110 percent at the end of 2023 to 98 percent at the end of 2024[17] - Nonperforming assets were $5.7 million, or less than 0.1 percent of total assets, as of December 31, 2024, down from $9.9 million, or 0.2 percent, at September 30, 2024[18] - Nonperforming loans decreased to $5,743,000 in Q4 2024 from $9,877,000 in Q3 2024[33] - The provision for credit losses for the fourth quarter of 2024 was $1.5 million, down from $1.8 million in the same quarter of 2023, indicating improved asset quality[31] Capital and Funding - Tier 1 capital increased to $633,134,000 in Q4 2024, up from $618,038,000 in Q3 2024[33] - The company reported a total of $649,528,778 in borrowed funds, which supports its operational liquidity[34] - Total borrowed funds stood at $770,838,000, highlighting the company's funding strategy[4] - Total interest-bearing liabilities were $4,106,315,000, indicating the company's leverage position[5] Dividend and Shareholder Value - The bank declared an increased regular cash dividend for the first quarter of 2025, reflecting its commitment to shareholder value[23] Overall Financial Health - The overall financial metrics suggest a positive outlook for future growth and stability[10] - Nonperforming assets and past due loans remained at low levels, demonstrating the effectiveness of the bank's loan review program[19]