Mercantile Bank Corp. today reported net income of $7.3 million, or 45 cents per share, for the second quarter with strong loan growth that’s projected to continue through the year.
The results for the April-to-June period compare with net income of $7.4 million, or 46 cents per share, in the second quarter of 2016.
Mid-year net income totaled $14.9 million, or 91 cents per share, versus $15.9 million, or 98 cents per share, in the first half of 2016, which included one-time gains of $1.1 million for a bank-owned life insurance benefit and $1.8 million on the sale of trust preferred securities.
The Grand Rapids-based Mercantile Bank (Nasdaq: MBWM) finished the quarter with $3.14 billion in total assets, versus $2.99 billion a year earlier, and total loans increased 6 percent in a year to $2.52 billion.
The bank recorded $152 million in new commercial loan originations during the quarter from new and existing borrowers and the quarter’s end had $111 million in unfunded commitments for commercial construction and development loans that it expects to “largely fund” within 12 to 18 months.
President and CEO Robert Kaminski described the period as a “solid quarter that reflects the ongoing success of our strategic initiatives.” The bank projects 2017 loan growth in the high single digits, he said.
“Our sound financial condition and anticipated new loan fundings make us confident that the strong performance achieved during the first six months of the year can continue throughout the last half of the year,” Kaminski said.
Mercantile Bank has 49 offices in western and central Michigan.