Mercantile Bank Reports $19.5M Q1 Income

By Tamara Parker • Tuesday, April 22 10:05 • Permanent Link

Mercantile Bank Corporation (NASDAQ: MBWM) has reported strong first quarter 2025 results, with net income of $19.5 million, or $1.21 per diluted share, compared to $21.6 million, or $1.34 per diluted share in the first quarter of 2024. The company's net revenue, consisting of net interest income and noninterest income, was $57.2 million during the first quarter of 2025, down 1.7 percent from the prior-year first quarter. Net interest income during the first three months of 2025 was $48.6 million, up 2.5 percent from the respective 2024 period, driven by a growth in earning assets.

The net interest margin was 3.47 percent in the first quarter of 2025, down from 3.74 percent in the prior-year first quarter. The yield on average earning assets was 5.74 percent during the current-year first quarter, a decrease from 6.06 percent during the respective 2024 period. The cost of funds was 2.27 percent, down from 2.32 percent in the first quarter of 2024. Mercantile recorded provisions for credit losses of $2.1 million and $1.3 million during the first quarters of 2025 and 2024, respectively.

Total assets were $6.14 billion as of March 31, 2025, up $89.0 million from December 31, 2024. Total loans increased $35.8 million, or an annualized 3.2 percent, during the first quarter of 2025, primarily reflecting growth in commercial loans of $44.3 million. Total deposits as of March 31, 2025, were $4.68 billion, down $16.6 million, or 0.4 percent, from December 31, 2024, but were up $674 million, or 16.8 percent, from March 31, 2024.

Nonperforming assets totaled $5.4 million, or less than 0.1 percent of total assets, at March 31, 2025, compared to $5.7 million, or less than 0.1 percent of total assets, at December 31, 2024. Shareholders’ equity totaled $608 million as of March 31, 2025, up $23.8 million from December 31, 2024. Mercantile Bank maintained “well-capitalized” positions at the end of the first quarter of 2025 and year-end 2024, with total risk-based capital ratios of 14.0 percent and 13.9 percent, respectively.

The company has prepared presentation materials detailing these results and its strategy moving forward. The market has reacted to these announcements by moving the company's shares 0.7% to a price of $40.53. For more information, read the company's full 8-K submission here.

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