Mercantile Bank Corporation (NASDAQ: MBWM) has reported its third-quarter results for 2024, showing a net income of $19.6 million, or $1.22 per diluted share, compared with net income of $20.9 million, or $1.30 per diluted share in the third quarter of 2023. For the first nine months of 2024, the net income was $60.0 million, or $3.72 per diluted share, compared with net income of $62.2 million, or $3.89 per diluted share, during the same period in 2023.
The third quarter of 2024 saw total assets at $5.92 billion, up $564 million from December 31, 2023. Total loans increased $115 million, or an annualized 10.3 percent, during the third quarter of 2024, and $249 million, or an annualized 7.7 percent, during the first nine months of 2024. The commercial loan portfolio expansion in both 2024 periods almost exclusively reflected growth in commercial loans, which increased $115 million, or an annualized 12.9 percent, during the current-year third quarter and $233 million, or an annualized 9.1 percent, during the first nine months of 2024.
Total deposits equaled $4.46 billion as of September 30, 2024, representing increases of $309 million, or an annualized 30.0 percent, during the third quarter of 2024, and $555 million, or an annualized 19.0 percent, during the first nine months of 2024. Local deposits were up $339 million, or 33.7 percent annualized, during the current-year third quarter and $600 million, or 21.4 percent annualized, during the first nine months of 2024.
The net interest margin was 3.52 percent in the third quarter of 2024, down from 3.98 percent in the prior-year third quarter. Noninterest income totaled $9.7 million during the third quarter of 2024, up $0.4 million, or 4.6 percent, from $9.3 million during the third quarter of 2023. The net interest income during the current-year third quarter was $48.3 million, down $0.7 million, or 1.4 percent, from $49.0 million during the respective 2023 period as increased yields on, along with growth in, earning assets were more than offset by a higher cost of funds.
Mercantile bank recorded provisions for credit losses of $1.1 million and $3.3 million during the third quarters of 2024 and 2023, respectively. Nonperforming assets totaled $9.9 million, or 0.2 percent of total assets, at September 30, 2024, compared to $9.1 million, or 0.2 percent of total assets, at June 30, 2024, and $3.6 million, or less than 0.1 percent of total assets, at December 31, 2023.
Shareholders’ equity totaled $583 million as of September 30, 2024, up $61.2 million from December 31, 2023. Mercantile Bank maintained “well-capitalized” positions at the end of the third quarter of 2024 and year-end 2023, with total risk-based capital ratios of 13.9 percent and 13.4 percent, respectively.
Mercantile Bank reported 16,142,433 total shares outstanding as of September 30, 2024. The market has reacted to these announcements by moving the company's shares 4.3% to a price of $45.26. Check out the company's full 8-K submission here.
