Business
Mercantile Bank Corporation Announces Strong Fourth Quarter and Full Year 2019 Results
Improved profitability stemming from increased net interest income and mortgage banking activity income highlight 2019 GRAND RAPIDS, Mich., Jan. 21, 2020
About this update from Mercantile Bank Corporation
[{"type":"text","content":"Improved profitability stemming from increased net interest income and mortgage banking activity income highlight 2019\n\n\nGRAND RAPIDS, Mich., Jan. 21, 2020 /PRNewswire/ -- Mercantile Bank Corporation (NASDAQ: MBWM) (\"Mercantile\") reported net income of $13.3 million, or $0.81 per diluted share, for the fourth quarter of 2019, compared with net income of $11.6 million, or $0.70 per diluted share, for the respective prior-year period. For the full year 2019, Mercantile reported net income of $49.5 million, or $3.01 per diluted share, compared with net income of $42.0 million, or $2.53 per diluted share, for the full year 2018.\nNet gains and losses on sales and write-downs of former branch facilities decreased reported net income during the fourth quarter of 2019 by approximately $0.3 million, or $0.02 per diluted share. Interest income related to purchased loan accounting entries increased net income during the fourth quarter of 2019 by $0.2 million, or $0.01 per diluted share, and net income during the fourth quarter of 2018 by $0.5 million, or $0.03 per diluted share. Excluding the impacts of these transactions, diluted earnings per share increased $0.15, or 22.4 percent, during the fourth quarter of 2019 compared to the respective 2018 period.\nBank owned life insurance claims and the net impact of gains and losses on sales and write-downs of former branch facilities increased reported net income during 2019 by approximately $2.7 million, or $0.16 per diluted share. Interest income related to purchased loan accounting entries increased net income during 2019 by $1.1 million, or $0.07 per diluted share, and net income during 2018 by $3.2 million, or $0.19 per diluted share. Excluding the impacts of these transactions, diluted earnings per share increased $0.44, or 18.8 percent, during 2019 compared to 2018.\nFourth quarter and full year highlights include:\nStrong earnings and capital position Solid growth in key fee income categories Controlled overhead costs Strong asset quality Net loan growth of $104 million, or nearly 4 percent, during the full year Sustained strength in commercial and residential mortgage loan pipelines Announced first quarter 2020 regular cash dividend of $0.28 per common share, an increase of 3.7 percent from the regular cash dividend paid during the fourth quarter of 2019\"We are very pleased to r...