Mercantile Bank (US:MBWM)2025-07-22 14:00Financial Performance - Net income increased to $22.6 million in 2Q25, compared to $18.8 million in 2Q24[11] - Earnings per share (EPS) rose to $1.39 in 2Q25, up from $1.17 in 2Q24[11] - Commercial loans experienced an annualized growth of 7% in 2Q25[11] - Total deposits grew by 2% (annualized) in 2Q25 and 13% over the last twelve months (LTM)[11] - The ratio of nonperforming assets to total assets stood at 0.16% at the end of 2Q25[11] - Total risk-based capital ratio was 14.4% at the end of 2Q25, compared to 14.1% at the end of 2Q24[11] Shareholder Value - Mercantile's 5-Year Tangible Book Value (TBV) Compound Annual Growth Rate (CAGR) is 8%, outperforming the proxy peer group's 4%[13, 15, 16] - Mercantile's 5-Year EPS CAGR is 10%, exceeding the proxy peers' 5%[17, 19, 20] Balance Sheet and Interest Rate Risk Management - Loan to deposit ratio decreased from 107% to below 100% over the last twelve months[21, 22] - The company closed two transferable energy tax credit deals, resulting in a tax benefit of $1.5 million in 2Q25[48] - Variable rate loans constitute 78% of the total loan portfolio[55]