Mercantile Bank Corporation has released its fourth-quarter and full-year 2024 results. The company reported a net income of $19.6 million, or $1.22 per diluted share, for the fourth quarter of 2024, compared with net income of $20.0 million, or $1.25 per diluted share, for the respective prior-year period. For the full year 2024, Mercantile reported net income of $79.6 million, or $4.93 per diluted share, compared with net income of $82.2 million, or $5.13 per diluted share, for the full-year 2023.
In terms of revenue, net revenue, consisting of net interest income and noninterest income, was $231 million during 2024, up $5.8 million, or 2.6 percent, from $226 million during 2023. Net interest income during 2024 was $191 million, down $2.5 million, or 1.3 percent, from $194 million during 2023 as growth in earning assets, most notably in loans, and a higher yield on earning assets was more than offset by an increased cost of funds. Noninterest income totaled $40.4 million during 2024, up $8.2 million, or 25.7 percent, from $32.2 million during 2023.
The net interest margin was 3.58 percent in 2024, down from 4.05 percent in 2023. The yield on average earning assets was 6.02 percent during 2024, an increase from 5.68 percent during the prior year. The cost of funds was 2.44 percent in 2024, up from 1.63 percent in 2023.
Total assets were $6.05 billion as of December 31, 2024, up $699 million from December 31, 2023. Total loans increased $297 million, or 6.9 percent, during 2024, mainly reflecting growth in commercial loans of $292 million. Commercial loans, which grew 8.5 percent during 2024, increased despite the full payoffs and partial paydowns of certain larger relationships.
Total deposits as of December 31, 2024, were $4.70 billion, up $797 million, or 20.4 percent, from December 31, 2023. Local deposits increased $816 million during 2024, while brokered deposits decreased $18.7 million. The growth in local deposits during 2024 provided for a reduction in the loan-to-deposit ratio from 110 percent as of December 31, 2023, to 98 percent as of year-end 2024.
In terms of noninterest expense, it totaled $33.8 million during the fourth quarter of 2024, compared to $29.9 million during the prior-year fourth quarter. Noninterest expense totaled $126 million during 2024, compared to $115 million during 2023. The increases during the 2024 periods mainly resulted from larger salary and benefit costs, reflecting annual merit pay increases, market adjustments, higher residential mortgage lender commissions and incentives, lower residential mortgage loan deferred salary costs, increased bonus accruals, higher payroll taxes, and increased health insurance claims.
These figures paint a picture of Mercantile Bank Corporation's financial performance and position at the end of 2024 compared to the previous year. Following these announcements, the company's shares moved 5.6%, and are now trading at a price of $46.7. Check out the company's full 8-K submission here.
