updated 4/19/2011 6:16:42 AM ET 2011-04-19T10:16:42

GRAND RAPIDS, Mich., April 19, 2011 (GLOBE NEWSWIRE) -- Mercantile Bank Corporation (Nasdaq:MBWM) ("Mercantile") reported net income attributable to common shares of $1.1 million, or $0.12 per diluted common share, for the first quarter of 2011 compared with a net loss attributable to common shares of $3.0 million, or ($0.35) per diluted common share, for the first quarter of 2010.

Mercantile returned to profitability during the first quarter of 2011 after reporting net losses during 2009 and 2010. A record high net interest margin and a significantly lower provision for loan losses were the key drivers of the improved performance. The decreased provision expense for the quarter reflects lower volumes of loan rating downgrades and nonperforming loans, as well as progress in the stabilization of economic and real estate market conditions and resulting collateral valuations.

Michael Price, Chairman and CEO of Mercantile Bank Corporation, stated, "We are pleased to report first quarter results, our first profitable quarter after two years of quarterly losses. As we've stated repeatedly in past quarters, we have been consistently conservative in our approach to credit administration and aggressive with respect to the resolution of problem assets. At the onset of the recession, senior management and the Board of Directors developed strategies to counter the negative impact of the distressed economy and subsequent decline in real estate values. In addition, we restructured our branch network, cut discretionary operating expenses, downsized our loan portfolio, enhanced our deposit product offerings and improved our loan and deposit pricing strategies to preserve and even boost our capital position. Considerable resources have been applied to credit administration and problem asset resolution. The process has been stressful to all concerned -- borrowers as well as the Mercantile team -- but I have been pleased by the spirit of cooperation that prevailed among and between all constituencies.

"This quarter clearly demonstrates the light at the other side of this lengthy tunnel. Although nonperforming assets remain higher than we would like, significant reductions have been achieved over the past twelve months and evidence of recovery is unmistakable. New additions to the problem loan portfolio were significantly lower this quarter, and loans 30 to 89 days delinquent are virtually zero. We have also been upgrading certain of our existing loans based on the improving credit strength of those borrowers. All of these factors contributed to this quarter's sharply lower loan loss provision, which we believe is sustainable.

"We are enthused to be emerging from the prolonged stress of this economic cycle in a position of strength. Credit policies and procedures have been honed under the most challenging circumstances, providing for improved profitability of performing loans, a pruned loan portfolio and enhanced risk identification and administration practices. Our net interest margin reached a record high this quarter, despite the $60 million of nonperforming loans remaining in the mix, and we have made substantial reductions to our controllable overhead expenses. Our regulatory capital ratios are strong and improving, and we have improved our liquidity position through dramatically reduced reliance on wholesale funding and higher levels of short-term investments. We believe these enhancements are also sustainable and will contribute to profitability in future quarters."

Operating Results

Total revenue, consisting of net interest income and noninterest income, was $15.2 million during the 2011 first quarter, down $1.8 million, or 10.4 percent, from the $17.0 million generated during the first quarter of 2010. Net interest income was $13.4 million, down $0.9 million, or 6.0 percent, from the $14.3 million earned in the prior-year first quarter. The decrease in net interest income resulted from a 16.7 percent decline in average earning assets, partially offset by a 39 basis point expansion in the net interest margin. 

Noninterest income for the 2011 first quarter was $1.8 million. Excluding first quarter 2010 nonrecurring gains totaling $0.7 million from the sale of SBA-guaranteed commercial loans and tax-exempt securities, first quarter 2011 noninterest income was down $0.2 million, or 10.6 percent, from the comparable prior-year period. The decrease in noninterest income primarily reflects lower rental income from fewer foreclosed properties.

The provision for loan losses was $2.2 million during the first quarter of 2011, compared to $8.4 million for the year-ago quarter. The reduced provision expense reflects several positive factors: a significant decline in total nonperforming loans, a slowdown in loan-rating downgrades, an increase in loan-rating upgrades resulting from improving economic conditions, and progress in the stabilization of real estate valuations in Mercantile's markets. The allowance for loan losses was 3.49 percent of total loans as of March 31, 2011, compared to 3.59 percent as of December 31, 2010, and 3.35 percent as of March 31, 2010. 

Noninterest expense for the 2011 first quarter was $11.6 million, down $0.1 million from the year-ago quarter. Reduced controllable expenses, namely salaries and benefits, occupancy, and furniture and equipment costs, and lower FDIC insurance premiums were substantially offset by increased nonperforming asset costs. Controllable expenses declined $0.5 million, or 7.7 percent, during the first quarter of 2011 compared to the prior-year quarter. FDIC insurance premiums were $0.9 million in the first quarter of 2011, down from $1.2 million in the first quarter of 2010; the lower premiums primarily resulted from a decreased assessment base and rate. Costs associated with the administration and resolution of problem assets (i.e., legal expenses, property tax payments, appraisal costs and write-downs on foreclosed properties) totaled $3.1 million during the first quarter of 2011, up $0.6 million, or 23.7 percent, from the year-ago quarter.

Balance Sheet

Total assets as of March 31, 2011 were $1.58 billion, down $55.5 million, or 3.4 percent, from December 31, 2010; total loans declined $55.7 million, or 4.4 percent, over the same time period, to $1.21 billion. Compared to March 31, 2010, total assets declined $326 million, or 17.1 percent, with total loans declining $291 million, or 19.4 percent.

Real estate loans, particularly loans secured by commercial properties, comprise a majority of Mercantile's loan portfolio. Although the Company has been aggressively down-sizing its real estate exposures, commercial/industrial activity has yet to rebound sufficiently to replace loans secured by real property. At March 31, 2011, real estate loans, excluding residential mortgage loans representing permanent financing of owner-occupied dwellings and home equity lines of credit, were $848 million, or approximately 70 percent of total loans, representing a decline of $163 million, or 16.1 percent, from the $1.01 billion (67.6 percent of total loans) at March 31, 2010.

Non-owner occupied commercial real estate ("CRE") loans totaled $485 million as of March 31, 2011 (40.2 percent of total loans), a decline of $54.7 million over the past twelve months. Owner-occupied CRE loans were $274 million at first quarter-end 2011, a decline of $42.6 million over the same period. Vacant land, land development and construction ("C&D") loans, including both residential and commercial projects, totaled $90.0 million at March 31, 2011, down $66.1 million since first quarter-end 2010. The commercial and industrial ("C&I") segment of the loan portfolio was $248 million at March 31, 2011, a decline of approximately $104 million over the past twelve months, in large part reflecting the continued sluggishness in business activity and a corresponding reduction in accounts receivable and inventory financings, as well as significantly reduced requests for new equipment financing.

LOANS SECURED BY REAL ESTATE
           
($000s) 3/31/11 12/31/10 9/30/10 6/30/10 3/31/10
Residential-Related:          
 Vacant Land $16,321 $17,201 $18,013 $20,351 $20,871
 Land Development 27,171 28,147 29,735 29,627 32,199
 Construction 4,906 5,621 5,854 6,627 7,872
  48,398 50,969 53,602 56,605 60,942
           
Comm'l Non-Owner Occupied:          
 Vacant Land 13,669 14,293 15,416 19,812 22,304
 Land Development 16,492 17,807 18,221 18,585 19,058
 Construction 10,046 31,827 39,620 52,295 52,107
 Commercial Buildings 484,629 489,371 509,777 512,816 539,284
  524,836 553,298 583,034 603,508 632,753
           
Comm'l Owner Occupied:          
 Construction 1,404 672 0 1,360 1,651
 Commercial Buildings 273,739 282,388 298,846 302,768 316,302
  275,143 283,060 298,846 304,128 317,953
           
 Total $848,377 $887,327 $935,482 $964,241 $1,011,648
           
Note:  Excludes residential mortgage loans representing permanent financing of owner occupied dwellings and home equity lines of credit.          

Mercantile's liquidity continues to improve as local deposits, especially interest-bearing checking and money market deposit accounts, increase in total dollars and as a percentage of total funding. As of March 31, 2011, total deposits were $1.25 billion, a decline of $20.2 million since year-end 2010 and a reduction of $346 million since year-end 2008. By comparison, local deposits increased $287 million over the past 27 months; they now represent 60.4 percent of total deposits compared to 29.4 percent at December 31, 2008. Approximately 86 percent, or $245 million, of local deposit growth since year-end 2008 occurred in the interest-bearing checking and money market deposit account categories, primarily reflecting new and innovative products, various deposit-gathering initiatives, and enhanced advertising campaigns that have attracted new deposits as well as transfers from maturing time deposit accounts.

Wholesale funds were $572 million, or 40.5 percent of total funds, as of March 31, 2011, compared to $1.41 billion, or 71.5 percent of total funds, as of December 31, 2008. The $843 million decline in wholesale funding reflects both the shift toward local deposits as well as a $650 million decline in total loans; this allowed Mercantile to reduce brokered deposits and FHLB advances as they matured over the past 27 months and to prepay certain FHLB advances during the fourth quarter of 2010.

Short-term investments, consisting of federal funds sold and interest-bearing bank deposits, averaged $57.3 million during the first quarter of 2011. In addition to its short-term investments, Mercantile has approximately $140 million of borrowing capacity through various established lines of credit to meet potential funding needs as well as about $45 million of U.S. Government securities available to sell if needed.

 Asset Quality

Nonperforming assets ("NPAs") at March 31, 2011 were $76.1 million, or 4.8 percent of total assets, compared to $86.1 million as of December 31, 2010, and $117.6 million as of March 31, 2010 (5.3 percent and 6.2 percent of total assets, respectively). This represents a decline of $10.0 million, or 11.6 percent, from the linked quarter-end and a decline of $41.5 million, or 35.3 percent, from the year-ago quarter-end.

Robert B. Kaminski Jr., Mercantile's Executive Vice President and Chief Operating Officer, added, "Nonperforming assets declined 35 percent from their high point of $117 million reported in the year-ago first quarter, to $76 million for the current quarter, the lowest level of the past two years. We have been consistent throughout this economic downturn in our application of Mercantile's credit administration and workout policies, and we don't plan to stop our vigilance as conditions improve. The lessons learned from this cycle have significantly influenced our lending strategies, which we believe will serve us well in future periods. We anticipate that asset quality should continue to improve as the economy gathers strength, with fewer additions to nonperforming assets."   

Nonperforming loans ("NPLs") totaled $60.2 million as of March 31, 2011, down $9.2 million and $34.3 million, respectively, from the linked quarter-end and the year-ago quarter-end, while foreclosed real estate and repossessed assets declined by $0.8 million and $7.2 million, respectively, from the linked and the year-ago quarter-ends. CRE loans represent 53.8 percent of NPLs, or $32.4 million. Investor-owned nonperforming CRE loans account for $22.5 million of total CRE nonperforming loans (4.7 percent of $485 million investor-owned CRE loans), while owner-occupied CRE loans account for $9.9 million (3.6percent of $274million owner-occupied CRE loans). Given the nature of collateral and the condition of the economy in general, and real estate markets specifically, progress toward resolution has been slow in both CRE categories, although some acceleration has been noted over the past few quarters.

Progress has also been achieved this past year toward resolution of nonperforming C&D loans, including both residential and commercial projects. C&D loans currently total $90.0 million, of which $14.4 million, or 16.0 percent, were nonperforming at March 31, 2011. This represents a substantial improvement since March 31, 2010, when $31.1 million, or 19.9 percent, of the $156 million C&D loan portfolio was nonperforming. Nonperforming C&I loans were $4.7 million as of March 31, 2011, a decline of $4.4 million since the year-ago quarter-end. Owner-occupied and rental residential NPLs were $8.6 million as of March 31, 2011, up $3.7 million since the year-ago quarter-end. 

NONPERFORMING ASSETS
           
($000s) 3/31/11 12/31/10 9/30/10 6/30/10 3/31/10
Residential Real Estate:          
 Land Development $14,252 $14,547 $16,746 $21,551 $22,781
 Construction 2,268 2,333 2,924 10,231 11,425
 Owner Occupied / Rental 8,893 9,454 7,251 6,159 5,908
  25,413 26,334 26,921 37,941 40,114
           
Commercial Real Estate:          
 Land Development 2,422 2,454 2,277 2,050 3,031
 Construction 0 0 0 571 1,238
 Owner Occupied  13,389 14,740 15,083 16,216 17,311
 Non-Owner Occupied 30,086 34,209 41,725 46,706 46,552
  45,897 51,403 59,085 65,543 68,132
           
Non-Real Estate:          
 Commercial Assets 4,728 8,221 6,386 7,049 9,303
 Consumer Assets 51 161 5 0 8
  4,779 8,382 6,391 7,049 9,311
           
 Total $76,089 $86,119 $92,397 $110,533 $117,557
 
NONPERFORMING LOANS
           
($000s) 3/31/11 12/31/10 9/30/10 6/30/10 3/31/10
Past due 90 days or more and accruing interest $0 $766 $0 $24 $0
Nonaccrual, including troubled debt restructurings 55,444 63,915 64,639 81,543 88,450
Troubled debt restructurings, accruing interest 4,761 4,763 5,862 5,946 6,011
           
 Total $60,205 $69,444 $70,501 $87,513 $94,461

During the 2011 first quarter, Mercantile added $3.9 million of NPAs to its problem asset portfolio and successfully disposed of $8.5 million through a combination of asset sales, principal pay-downs, and returns to performing status. Loan charge-offs were $4.8 million and foreclosed asset valuation write-downs were $0.6 million. In total, nonperforming assets decreased a net $10.0 million from year-end 2010.

Improvement in asset quality is even more apparent on a year-over-year basis. Since March 31, 2010, Mercantile added $41.5 million of problem assets to its NPA portfolio, successfully disposed of $47.7 million, and charged-off or wrote-down an additional $35.3 million. In total, NPAs declined a net $41.5 million since the year-ago quarter-end. By comparison, Mercantile added $103.9 million of NPAs, successfully disposed of $34.4 million, and charged-off or wrote-down an additional $35.7 million during the twelve-month period ended March 31, 2010. In total, NPAs increased a net $33.8 million from March 31, 2009 to March 31, 2010.

NONPERFORMING ASSETS RECONCILIATION
           
($000s) 1Q 2011 4Q 2010 3Q 2010 2Q 2010 1Q 2010
           
Beginning balance $86,119 $92,397 $110,533 $117,557 $111,658
Additions 3,848 13,602 10,905 13,101 23,054
Returns to performing status (766) (1,019) (7,938) (1,356) (811)
Principal payments (5,555) (7,217) (5,422) (7,332) (4,242)
Sale proceeds (2,158) (5,282) (1,209) (2,398) (5,080)
Loan charge-offs (4,800) (4,650) (12,829) (8,176) (6,117)
Valuation write-downs (599) (1,712) (1,643) (863) (905)
           
 Total $76,089 $86,119 $92,397 $110,533 $117,557

Net loan charge-offs were $5.4 million during the first quarter of 2011, or an annualized 1.8 percent of average loans, compared with $5.3 million (1.6 percent annualized) and $6.2 million (1.6 percent annualized) for the linked and prior-year quarters, respectively. Of the $6.0 million in gross charge-offs during the first quarter of 2011, $3.6 million was comprised of specific reserves that were created through provision expense in prior periods.

NET LOAN CHARGE-OFFS (RECOVERIES)
           
($000s) 1Q 2011 4Q 2010 3Q 2010 2Q 2010 1Q 2010
Residential Real Estate:          
 Land Development $ (2) $312 $2,115 $1,254 $565
 Construction 0 173 93 649 587
 Owner Occupied / Rental 1,208 120 1,212 407 326
  1,206 605 3,420 2,310 1,478
           
Commercial Real Estate:          
 Land Development (73) 219 360 674 617
 Construction 0 0 0 660 0
 Owner Occupied  1,436 976 2,159 726 1,091
 Non-Owner Occupied (40) 2,642 6,805 2,551 1,945
  1,323 3,837 9,324 4,611 3,653
           
Non-Real Estate:          
 Commercial Assets 2,794 819 1,517 1,670 1,012
 Consumer Assets 126 47 1 (3) 9
  2,920 866 1,518 1,667 1,021
           
 Total $5,449 $5,308 $14,262 $8,588 $6,152

Capital Position

Shareholders' equity totaled $127 million as of March 31, 2011, a decrease of $11.4 million, or 8.3 percent, from March 31, 2010; however, regulatory capital ratios continue to improve. The Bank remains "well-capitalized" with a total risk-based capital ratio of 13.0 percent as of March 31, 2011 compared to 11.2 percent at March 31, 2010. At March 31, 2011, the Bank had approximately $41.1 million in excess of the 10.0 percent minimum regulatory threshold required to be considered a "well-capitalized" institution. Mercantile's total shares outstanding at first quarter-end were 8,601,117.

In conclusion, Mr. Price commented that Mercantile's turnaround is still in its early stages. "There is additional upside to be achieved from the continued reduction of problem assets, which should enhance our revenues, further decrease the loan loss provision, and reduce expenses associated with the administration and resolution of problem assets. These improvements in asset quality alone should contribute meaningfully to increased profitability as the economy continues to gather strength. We are also planning for any emerging opportunities in the changing commercial landscape of West and Central Michigan that might provide Mercantile with opportunities for future growth."

About Mercantile Bank Corporation

Based in Grand Rapids, Michigan, Mercantile Bank Corporation is the bank holding company for Mercantile Bank of Michigan. Founded in 1997 to provide banking services to businesses, individuals, and governmental units, the Bank differentiates itself on the basis of service quality and the expertise of its banking staff. Mercantile has seven full-service banking offices in Grand Rapids, Holland and Lansing, Michigan. Mercantile Bank Corporation's common stock is listed on the NASDAQ Global Select Market under the symbol "MBWM."

Forward-Looking Statements

This news release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Actual results may differ materially from the results expressed in forward-looking statements. Factors that might cause such a difference include changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulation or actions by bank regulators; changes in tax laws; changes in prices, levies, and assessments; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; changes in the national and local economies; and other factors, including risk factors, disclosed from time to time in filings made by Mercantile with the Securities and Exchange Commission. Mercantile undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.

MERCANTILE BANK CORPORATION
CONSOLIDATED BALANCE SHEETS
       
  MARCH 31, DECEMBER 31, MARCH 31,
  2011 2010 2010
  (Unaudited) (Audited) (Unaudited)
       
ASSETS      
 Cash and due from banks  $ 11,277,000  $ 6,674,000  $ 12,606,000
 Short-term investments 9,543,000 9,600,000 9,475,000
 Federal funds sold 56,068,000 47,924,000 74,352,000
 Total cash and cash equivalents 76,888,000 64,198,000 96,433,000
       
 Securities available for sale 207,321,000 220,830,000 212,949,000
 Federal Home Loan Bank stock 14,345,000 14,345,000 15,681,000
       
 Loans 1,206,886,000 1,262,630,000 1,497,624,000
 Allowance for loan losses (42,118,000) (45,368,000) (50,126,000)
 Loans, net 1,164,768,000 1,217,262,000 1,447,498,000
       
 Premises and equipment, net 27,518,000 27,873,000 29,141,000
 Bank owned life insurance 47,182,000 46,743,000 45,436,000
 Accrued interest receivable 5,885,000 5,942,000 7,057,000
 Other real estate owned and repossessed assets 15,884,000 16,675,000 23,096,000
 Other assets 17,144,000 18,553,000 25,632,000
       
 Total assets  $ 1,576,935,000  $ 1,632,421,000  $ 1,902,923,000
       
       
LIABILITIES AND SHAREHOLDERS' EQUITY      
 Deposits:      
 Noninterest-bearing  $ 136,025,000  $ 112,944,000  $ 118,391,000
 Interest-bearing 1,117,619,000 1,160,888,000 1,301,818,000
 Total deposits 1,253,644,000 1,273,832,000 1,420,209,000
       
 Securities sold under agreements to repurchase 80,821,000 116,979,000 98,619,000
 Federal Home Loan Bank advances 65,000,000 65,000,000 190,000,000
 Subordinated debentures 32,990,000 32,990,000 32,990,000
 Other borrowed money 11,733,000 11,804,000 16,829,000
 Accrued expenses and other liabilities 5,933,000 5,880,000 6,056,000
 Total liabilities 1,450,121,000 1,506,485,000 1,764,703,000
       
SHAREHOLDERS' EQUITY      
 Preferred stock, net of discount 20,138,000 20,077,000 19,896,000
 Common stock 173,870,000 173,815,000 173,631,000
 Retained earnings (deficit) (67,693,000) (68,781,000) (57,134,000)
 Accumulated other comprehensive income (loss) 499,000 825,000 1,827,000
 Total shareholders' equity 126,814,000 125,936,000 138,220,000
       
 Total liabilities and shareholders' equity  $ 1,576,935,000  $ 1,632,421,000  $ 1,902,923,000
 
MERCANTILE BANK CORPORATION
CONSOLIDATED REPORTS OF INCOME
     
  THREE MONTHS ENDED THREE MONTHS ENDED
   March 31, 2011  March 31, 2010
  (Unaudited) (Unaudited)
INTEREST INCOME    
 Loans, including fees  $ 16,732,000  $ 20,406,000
 Investment securities 2,391,000 2,743,000
 Federal funds sold 30,000 31,000
 Short-term investments 6,000 9,000
 Total interest income 19,159,000 23,189,000
     
INTEREST EXPENSE    
 Deposits 4,634,000 6,497,000
 Short-term borrowings 161,000 344,000
 Federal Home Loan Bank advances 606,000 1,696,000
 Other borrowed money 309,000 346,000
 Total interest expense 5,710,000 8,883,000
     
 Net interest income 13,449,000 14,306,000
     
 Provision for loan losses 2,200,000 8,400,000
     
 Net interest income after provision for loan losses 11,249,000 5,906,000
     
NONINTEREST INCOME    
 Service charges on accounts 422,000 466,000
 Gain on sale of commercial loans 0 220,000
 Net gain on sale of investment securities 0 476,000
 Other income 1,330,000 1,493,000
 Total noninterest income 1,752,000 2,655,000
     
NONINTEREST EXPENSE    
 Salaries and benefits 4,371,000 4,665,000
 Occupancy  701,000 750,000
 Furniture and equipment 303,000 409,000
 Nonperforming asset costs 3,098,000 2,504,000
 FDIC insurance costs 916,000 1,186,000
 Other expense 2,192,000 2,120,000
 Total noninterest expense 11,581,000 11,634,000
     
Income (loss) before federal income tax expense (benefit) 1,420,000 (3,073,000)
     
 Federal income tax expense (benefit) 0 (430,000)
     
 Net income (loss) 1,420,000 (2,643,000)
     
 Preferred stock dividends and accretion 332,000 320,000
     
 Net income (loss) attributable to common shares  $ 1,088,000  $ (2,963,000)
     
 Basic earnings (loss) per share $0.13 ($0.35)
 Diluted earnings (loss) per share $0.12 ($0.35)
     
 Average basic shares outstanding  8,599,166 8,501,671
 Average diluted shares outstanding  8,884,675 8,501,671
 
MERCANTILE BANK CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
  Quarterly
  1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
(dollars in thousands except per share data) 2011 2010 2010 2010 2010
           
EARNINGS          
 Net interest income  $ 13,449 13,687 13,935 14,421 14,306
 Provision for loan losses  $ 2,200 6,800 10,400 6,200 8,400
 Noninterest income  $ 1,752 2,304 2,289 1,996 2,655
 Noninterest expense  $ 11,581 12,181 11,899 11,442 11,634
 Net income (loss) before federal income tax expense (benefit)  $ 1,420 (2,990) (6,075) (1,225) (3,073)
 Net income (loss)  $ 1,420 (4,953) (5,357) (363) (2,643)
 Net income (loss) common shares  $ 1,088 (5,282) (5,682) (684) (2,963)
 Basic earnings (loss) per share  $ 0.13 (0.62) (0.67) (0.08) (0.35)
 Diluted earnings (loss) per share  $ 0.12 (0.62) (0.67) (0.08) (0.35)
 Average shares outstanding  8,599,166 8,516,202 8,507,174 8,505,086 8,501,671
 Average diluted shares outstanding  8,884,675 8,516,202 8,507,174 8,505,086 8,501,671
           
PERFORMANCE RATIOS          
 Return on average assets 0.28% (1.21%) (1.27%) (0.15%) (0.63%)
 Return on average common equity 3.49% (15.83%) (16.14%) (1.98%) (8.62%)
 Net interest margin (fully tax-equivalent) 3.64% 3.36% 3.33% 3.31% 3.25%
 Efficiency ratio 76.19% 76.17% 73.34% 69.69% 68.59%
 Full-time equivalent employees 241 242 250 248 251
           
CAPITAL          
 Period-ending equity to assets 8.04% 7.71% 7.43% 7.71% 7.26%
 Tier 1 leverage capital ratio 9.88% 9.09% 9.15% 9.02% 8.77%
 Tier 1 risk-based capital ratio 11.70% 11.17% 10.77% 10.65% 10.02%
 Total risk-based capital ratio 12.98% 12.45% 12.04% 11.92% 11.29%
 Book value per share  $ 12.30 12.20 13.23 13.74 13.64
 Cash dividend per share  $ 0.00  0.00 0.00 0.00 0.01
           
ASSET QUALITY          
 Gross loan charge-offs  $ 6,031 5,892 14,499 9,891 6,846
 Net loan charge-offs  $ 5,449 5,308 14,262 8,588 6,152
 Net loan charge-offs to average loans 1.79% 1.63% 4.11% 2.35% 1.64%
 Allowance for loan losses  $ 42,118 45,368 43,876 47,738 50,126
 Allowance for loan losses to total loans   3.49% 3.59% 3.30% 3.38% 3.35%
 Nonperforming loans  $ 60,205 69,444 70,501 87,513 94,461
 Other real estate and repossessed assets  $ 15,884 16,675 21,896 23,020 23,096
 Nonperforming assets to total assets 4.83% 5.28% 5.10% 6.13% 6.18%
           
END OF PERIOD BALANCES          
 Loans  $ 1,206,886 1,262,630 1,329,156 1,410,710 1,497,624
 Total earning assets (before allowance)  $ 1,494,163 1,555,329 1,715,322 1,706,870 1,810,081
 Total assets  $ 1,576,935 1,632,421 1,813,383 1,804,062 1,902,923
 Deposits  $ 1,253,644 1,273,832 1,351,864 1,340,160 1,420,209
 Shareholders' equity  $ 126,814 125,936 134,734 139,043 138,220
           
AVERAGE BALANCES          
 Loans  $ 1,233,037 1,292,289 1,378,248 1,465,631 1,516,898
 Total earning assets (before allowance)  $ 1,519,304 1,636,471 1,680,362 1,770,391 1,823,828
 Total assets  $ 1,602,882 1,728,375 1,774,671 1,862,526 1,920,751
 Deposits  $ 1,261,590 1,339,149 1,313,902 1,390,397 1,433,091
 Shareholders' equity  $ 126,412 132,409 139,629 138,907 139,485
CONTACT: AT MERCANTILE BANK CORPORATION:
         Michael Price
         Chairman & CEO
         616-726-1600
         mprice@mercbank.com
         
         Charles Christmas
         Chief Financial Officer
         616-726-1202
         cchristmas@mercbank.com

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Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 4.97%
$30K home equity loan FICO 5.23%
$75K home equity loan FICO 4.66%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.28%
13.21%
Cash Back Cards 17.73%
17.70%
Rewards Cards 17.00%
16.96%
Source: Bankrate.com