Business
Mercantile Bank Corporation Reports Second Quarter 2020 Results
Robust mortgage banking income offsets loan loss reserve build during quarter GRAND RAPIDS, Mich., July 21, 2020 /PRNewswire/ -- Mercantile Bank Corporation
About this update from Mercantile Bank Corporation
[{"type":"text","content":"Robust mortgage banking income offsets loan loss reserve build during quarter\n\n\nGRAND RAPIDS, Mich., July 21, 2020 /PRNewswire/ -- Mercantile Bank Corporation (NASDAQ: MBWM) (\"Mercantile\") reported net income of $8.7 million, or $0.54 per diluted share, for the second quarter of 2020, compared with net income of $11.7 million, or $0.71 per diluted share, for the respective prior-year period. Net income during the first six months of 2020 totaled $19.4 million, or $1.19 per diluted share, compared to $23.5 million, or $1.43 per diluted share, during the first six months of 2019.\nProceeds from a bank owned life insurance claim increased net income in the prior-year second quarter by $1.3 million, or $0.08 per diluted share. Excluding the impact of this transaction, diluted earnings per share decreased $0.09, or 14.3 percent, during the current-year second quarter compared to the respective prior-year period. Proceeds from bank owned life insurance claims and a gain on the sale of a former branch facility increased net income in the first six months of 2019 by $3.1 million, or $0.19 per diluted share. Excluding the impacts of these transactions, diluted earnings per share decreased $0.05, or 4.0 percent, during the first six months of 2020 compared to the respective prior-year period.\n\"We are pleased with our financial performance during the second quarter of 2020, especially when taking into consideration the unique and persistent challenges presented by the COVID-19 pandemic,\" said Robert B. Kaminski, Jr., President and Chief Executive Officer of Mercantile. \"The tremendous efforts of the Mercantile team allowed us to successfully navigate through these challenges, including meeting customers' banking needs while working remotely. We also increased our loan loss reserve during the quarter to reflect the potential deterioration in our loan portfolio stemming from the pandemic and associated weakened economic conditions.\" \nSecond quarter highlights include:\nSolid capital position Asset quality metrics remained strong Paycheck Protection Program loan fundings of approximately $549 million Continued strength in commercial loan and residential mortgage loan pipelines Substantial increase in mortgage banking income Controlled overhead costsOperating Results\nTotal revenue, which consists of net interest income and noninter...