Business
Mercantile Bank Corporation Reports Strong First Quarter 2020 Results
Continued strength in core profitability and solid commercial loan growth highlight quarter GRAND RAPIDS, Mich., April 21, 2020 /PRNewswire/ -- Mercantile
About this update from Mercantile Bank Corporation
[{"type":"text","content":"Continued strength in core profitability and solid commercial loan growth highlight quarter\n\n\nGRAND RAPIDS, Mich., April 21, 2020 /PRNewswire/ -- Mercantile Bank Corporation (NASDAQ: MBWM) (\"Mercantile\") reported net income of $10.7 million, or $0.65 per diluted share, for the first quarter of 2020, compared with net income of $11.8 million, or $0.72 per diluted share, for the respective prior-year period. Proceeds from a bank owned life insurance claim and a gain on the sale of a former branch facility increased net income in the prior-year period by $1.8 million, or $0.11 per diluted share. Excluding the impacts of these transactions, diluted earnings per share increased $0.04, or approximately 7 percent, during the current-year first quarter compared to the prior-year first quarter.\n\"We are very pleased with our first quarter 2020 financial performance, which depicts the ongoing success of certain strategic initiatives,\" said Robert B. Kaminski, Jr., President and Chief Executive Officer of Mercantile. \"Our robust financial results reflect solid growth in the commercial loan portfolio, increased fee income, managed overhead costs, and sound asset quality.\" \nFirst quarter highlights include:\nRobust earnings and capital position Solid growth in key fee income categories Controlled overhead costs Strong asset quality Annualized net commercial loan growth of approximately 5 percent Residential mortgage loan originations up nearly 200 percent compared to the respective 2019 period Continued strength in commercial loan and residential loan pipelinesOperating Results\nTotal revenue, which consists of net interest income and noninterest income, was $36.9 million during the first quarter of 2020, compared to $37.3 million during the prior-year first quarter. Net interest income during the first quarter of 2020 was $30.3 million, down $0.3 million, or 1.1 percent, from the first quarter of 2019, reflecting a decreased net interest margin, which more than offset the positive impact of earning asset growth.\nThe net interest margin was 3.63 percent in the first quarter of 2020, compared to 3.88 percent in the first quarter of 2019. The yield on average earning assets was 4.54 percent during the first quarter of 2020, down from 4.89 percent during the prior-year first quarter primarily due to a decreased yield on commercial lo...