Mercantile Bank Corporation (NASDAQ: MBWM) has reported robust first-quarter results for 2024, with net income of $21.6 million, or $1.34 per diluted share. This marks an increase from the first quarter of 2023, where net income was $21.0 million, or $1.31 per diluted share.
Total revenue for the first quarter of 2024 was $58.2 million, up 5.2% from the prior-year first quarter. Net interest income was $47.4 million, down 2.1% from the first quarter of 2023, while noninterest income totaled $10.9 million, up 56.4% from the first quarter of 2023. The significant increase in noninterest income primarily reflected higher levels of treasury management fees, mortgage banking, bank-owned life insurance, and interest rate swap income, along with revenue generated from an investment in a private equity fund.
The net interest margin was 3.74% in the first quarter of 2024, down from 4.28% in the prior-year first quarter. The yield on average earning assets was 6.06% during the first three months of 2024, up from 5.35% during the respective 2023 period.
During the first quarter of 2024, total assets were $5.47 billion, up $113 million from December 31, 2023, and $570 million from March 31, 2023. Total loans increased $18.2 million during the first quarter of 2024, and commercial loans grew $14.3 million, or an annualized 1.7%.
Total deposits equaled $4.01 billion as of March 31, 2024, representing increases of $107 million from December 31, 2023, and $410 million from March 31, 2023. Local deposits were up $102 million during the first quarter of 2024, despite the typical level of seasonal noninterest-bearing deposit withdrawals by customers.
Nonperforming assets totaled $6.2 million, or 0.1% of total assets, at March 31, 2024, compared to $3.6 million, or less than 0.1% of total assets, at December 31, 2023, and $8.4 million, or 0.2% of total assets, at March 31, 2023.
Shareholders’ equity totaled $537 million as of March 31, 2024, up $14.5 million from year-end 2023. Mercantile Bank maintained a “well-capitalized” position as of March 31, 2024, with a total risk-based capital ratio of 13.8%, compared to 13.4% as of December 31, 2023.
As a result of these announcements, the company's shares have moved -1.3% on the market, and are now trading at a price of $35.02. For the full picture, make sure to review Mercantile Bank's 8-K report.