Mercantile Bank Reports $18.8M Q2 Net Income

By Bobby Samwell • Tuesday, July 16 15:14 • Permanent Link

Mercantile Bank Corporation (NASDAQ: MBWM) reported net income of $18.8 million, or $1.17 per diluted share, for the second quarter of 2024, compared with net income of $20.4 million, or $1.27 per diluted share, for the second quarter of 2023. For the first six months of 2024, net income totaled $40.3 million, or $2.50 per diluted share, compared with net income of $41.3 million, or $2.58 per diluted share, during the first six months of 2023.

The net revenue, consisting of net interest income and noninterest income, was $56.8 million during the second quarter of 2024, up 2.8 percent from $55.2 million during the prior-year second quarter. Net interest income during the current-year second quarter was $47.1 million, down 1.0 percent from $47.6 million during the respective 2023 period. Noninterest income totaled $9.7 million during the second quarter of 2024, up 26.6 percent from $7.7 million during the second quarter of 2023.

The net interest margin was 3.63 percent in the second quarter of 2024, down from 4.05 percent in the prior-year second quarter. The yield on average earning assets was 6.07 percent during the current-year second quarter, an increase from 5.61 percent during the respective 2023 period.

As of June 30, 2024, total assets were $5.60 billion, up $249 million from December 31, 2023. Total loans increased $134 million, or an annualized 6.3 percent, during the first six months of 2024, primarily reflecting commercial loan growth of $118 million, or an annualized 6.9 percent. Total deposits equaled $4.15 billion as of June 30, 2024, representing an increase of $246 million, or an annualized 12.6 percent, from December 31, 2023.

Nonperforming assets totaled $9.1 million, or 0.2 percent of total assets, at June 30, 2024, compared to $6.2 million, or 0.1 percent of total assets, at March 31, 2024, and $3.6 million, or less than 0.1 percent of total assets, at December 31, 2023.

Shareholders’ equity totaled $551 million as of June 30, 2024, up $29.0 million from December 31, 2023. Mercantile Bank maintained “well-capitalized” positions at the end of the second quarter of 2024 and year-end 2023, with total risk-based capital ratios of 13.9 percent and 13.4 percent, respectively.

Today the company's shares have moved 11.7% to a price of $49.28. For more information, read the company's full 8-K submission here.

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