Business
Mercantile Bank Corporation Announces Solid First Quarter 2022 Results
Strong core commercial loan growth, ongoing strength in asset quality metrics, and substantial increases in several key fee income categories highlight
About this update from Mercantile Bank Corporation
[{"type":"text","content":"Strong core commercial loan growth, ongoing strength in asset quality metrics, and substantial increases in several key fee income categories highlight quarter\nGRAND RAPIDS, Mich., April 19, 2022 /PRNewswire/ -- Mercantile Bank Corporation (NASDAQ: MBWM) (\"Mercantile\") reported net income of $11.5 million, or $0.73 per diluted share, for the first quarter of 2022, compared with net income of $14.2 million, or $0.87 per diluted share, for the respective prior-year period.\n\"We are pleased with our financial results during the first three months of 2022,\" said Robert B. Kaminski, Jr., President and Chief Executive Officer of Mercantile. \"The significant increase in core commercial loans, continued strength in asset quality metrics, growth in several key fee income revenue streams, and managed overhead costs represent the main successes during the quarter and have positioned us to achieve sound operating results for the remainder of the year despite the significant drop in mortgage banking revenue stemming from changed market conditions. Our entire team continues to do an outstanding job of meeting the needs of our customers, including serving as a trusted advisor and assisting them navigate through the latest challenges of the current economic environment.\"\nFirst quarter highlights include:\nAnnualized net core commercial loan growth of approximately 11 percentSustained strength in commercial loan pipelineNet interest income growthSignificant increases in several key fee income categoriesContinued low levels of nonperforming assets and gross loan charge-offsRobust capital positionAugmented regulatory capital levels with issuance of additional subordinated notesOperating Results\nTotal revenue, which consists of net interest income and noninterest income, was $40.2 million during the first quarter of 2022, compared to $43.0 million during the prior-year first quarter. Net interest income during the first three months of 2022 was $30.9 million, up $1.4 million, or 4.6 percent, from $29.5 million during the respective 2021 period due to earning asset growth, which more than offset a lower net interest margin. Noninterest income totaled $9.3 million during the first quarter of 2022, down from $13.5 million during the first quarter of 2021 mainly due to decreased mortgage banking income, which more than offset increases in all ...