Mercantile Bank Corporation Reports Strong 2nd Quarter 2019 Results.
GRAND RAPIDS, Mich: Mercantile Bank Corporation (NASDAQ: MBWM) ("Mercantile") reported net income of $11.7 million, or $0.71 per diluted share, for the second quarter of 2019, compared with net income of $9.4 million, or $0.57 per diluted share, for the respective prior-year period. Net income during the first six months of 2019 totaled $23.5 million, or $1.43 per diluted share, compared to $20.3 million, or $1.22 per diluted share, during the first six months of 2018.
A bank owned life insurance claim increased reported net income during the second quarter of 2019 by approximately $1.3 million, or $0.08 per diluted share. Excluding the impact of this transaction, diluted earnings per share increased $0.06, or 10.5 percent, during the second quarter of 2019 compared to the prior-year second quarter. Bank owned life insurance claims and a gain on the sale of a former branch facility increased reported net income during the first six months of 2019 by approximately $3.1 million, or $0.19 per diluted share, while the successful collection of certain nonperforming commercial loans increased reported net income during the respective 2018 period by approximately $1.7 million, or $0.10 per diluted share. Excluding the impacts of these transactions, diluted earnings per share increased $0.12, or 10.7 percent, during the first six months of 2019 compared to the respective prior-year period.
"We are very pleased to conclude the first half of 2019 with another quarter of solid operating results," said Robert B. Kaminski, Jr., President and Chief Executive Officer of Mercantile. "Our sound financial condition, sustained strength in commercial and residential mortgage loan originations, and expected new loan fundings elicit confidence that the strong results achieved during the first six months of the year will continue throughout the last half of the year."
Second quarter highlights include:
Robust earnings performance and capital position
Healthy net interest margin
Increased fee income
Controlled overhead costs
Strong asset quality, as reflected by low levels of nonperforming assets and loans in the 30- to 89-days delinquent category
Annualized net loan growth of almost 12 percent
New commercial term loan originations of approximately $134 million
Continued strength in commercial and residential loan pipelines
Operating Results
Total revenue, which consists of net interest income and noninterest income, was $37.5 million during the second quarter of 2019, up $3.7 million, or 10.9 percent, from the prior-year second quarter. Reflecting a higher level of earning assets, net interest income of $31.1 million during the second quarter of 2019 was up $1.9 million, or 6.5 percent, from the second quarter of 2018.
The net interest margin was 3.79...
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