Mercantile Bank reported net income of $12.6 million, or $0.77 per diluted share, for the third quarter of 2019, compared with net income of $10.1 million, or $0.61 per diluted share, for the respective prior-year period.
Net income during the first nine months of 2019 totaled $36.1 million, or $2.20 per diluted share, compared to $30.5 million, or $1.83 per diluted share, during the first nine months of 2018.
Bank owned life insurance claims and a gain on the sale of a former branch facility increased reported net income during the first nine months of 2019 by approximately $3.1 million, or $0.19 per diluted share. Interest income related to purchased loan accounting entries increased net income during the first nine months of 2019 by $0.9 million, or $0.05 per diluted share, and net income during the first nine months of 2018 by $2.7 million, or $0.16 per diluted share. Excluding the impacts of these transactions, diluted earnings per share increased $0.29, or 17.4 percent, during the first nine months of 2019 compared to the respective 2018 period.
“We are very pleased to once again report a quarter of robust operating performance, representing a continuation of the financial trends demonstrated during the first six months of the year,” said Robert B. Kaminski, Jr., president and CEO of Mercantile. “Our sustained strength in core profitability, solid capital position, and healthy commercial loan and residential mortgage loan pipelines give us confidence that the sound financial performance exhibited during the first three quarters of the year will continue in the fourth quarter and beyond.”
Third quarter highlights included:
- Strong earnings performance and capital position
- Increased fee income
- Controlled overhead costs
- Strong asset quality
- Annualized net loan growth of approximately 7%
- New commercial term loan originations of $153 million
- Continued strength in commercial and residential loan pipelines
As of September 30, 2019, commercial and industrial loans and owner-occupied commercial real estate loans combined represented approximately 58% of total commercial loans, a level that has remained relatively consistent and in line with internal expectations.
Based in Grand Rapids, MI, Mercantile Bank of Michigan provides banking services to businesses, individuals and governmental units, and differentiates itself on the basis of service quality and the expertise of its banking staff. Mercantile has assets of approximately $3.7 billion and operates 46 banking offices.