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Mercantile reports higher second quarter earnings, aided by lower federal tax rate

BY MiBiz Staff Tuesday, July 17, 2018 09:32am

GRAND RAPIDS —Mercantile Bank Corp. today reported higher earnings for the second quarter and first half of 2018.

The Grand Rapids-based Mercantile Bank (Nasdaq: MBWM) recorded quarterly net income of $9.4 million, or 57 cents per diluted share, which compares with $7.3 million, or 45 cents per diluted share, in the same period a year earlier.

The bank’s second quarter results benefitted from a lower federal corporate tax rate. Mercantile Bank’s federal tax burden declined to $2.2 million for the quarter, down from $3.2 million in the same period in 2017.

Mercantile originated $142 million in commercial loans to new and existing borrowers in the quarter. The bank finished the quarter with a net increase of $78.3 million in total loans to $2.63 billion, a 3.1-percent increase from a year earlier.

At the end of the second quarter, Mercantile had about $116 million in unfunded commercial construction and development loan commitments that it expects to fund over 12 to 18 months.

“Our strong operating performance and balance sheet, sustained strength in commercial and residential mortgage loan originations, and healthy loan pipelines make us confident that the solid results achieved during the first half of the year will continue throughout the remainder of 2018,” President and CEO Robert Kaminski said in this morning’s earnings announcement.

Mercantile Bank has 47 offices in the central and western Lower Peninsula with $3.29 billion in total assets as of June 30.

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