fbpx
Published in Finance

Commercial loans propelled strong earnings for Mercantile Bank in 2021

BY Tuesday, January 18, 2022 04:30pm

GRAND RAPIDS — Mercantile Bank Corp. recorded strong earnings in 2021 with loan growth that President and CEO Robert Kaminski Jr. called “nothing short of stellar.”

The Grand Rapids-based Mercantile Bank (Nasdaq: MBWM) today reported $54 million in full-year net income, or $3.69 per diluted share. That compares to $44.1 million in net income, or 2.71 per diluted share, in 2020.

Robert Kaminski Jr. COURTESY PHOTO

Commercial lending grew at an annualized rate of 20 percent, minus loans made under the federal government’s Paycheck protection Program, to end 2021 at $2.95 billion.

“In short, based on the strength of our team, health of our customers’ businesses and the size of our loan pipelines, we expect to continue demonstrating strong organic commercial loan growth relative to peers,” Kaminski said today during a conference call with analysts to discuss results. “We are confident in our ability to continue our success given the trends and outlook for our primary Michigan markets, where the economy and real estate conditions continue to be healthy.”

Kaminski credited Mercantile’s strong commercial loan growth to the bank’s picking up business and adding commercial lenders who are “opening some new doors for us in terms of other opportunities in the community that we hadn’t had previous exposure with.”

“So, all that together really makes us feel very confident about the ability to continue robust loan growth in 2022,” he said. “Importantly, organic growth is coming from all of our markets, led by Grand Rapids in the West Michigan region.”

Mercantile Bank did record lower earnings for the fourth quarter that resulted from a $4 million contribution made to a new charitable foundation formed late last year. Quarterly net income of $11.6 million, or 74 cents per diluted share, for the final three months of 2021 compares to $15 million, or 95 cents per diluted share, in the fourth quarter of 2020.

The contribution to The Mercantile Bank Foundation cut into quarterly and annual net income by $3.2 million, or 20 cents per diluted share.

Mercantile Bank has 44 offices across the Lower Peninsula with $5.25 billion in total assets at the end of 2021 and $4.08 billion in total deposits. The corporation just last week closed on a debt placement that raised another $15 million in capital, which was on top of the $75 million raised in December through a debt placement.

Read 1664 times
SUBSCRIBE TO MIBIZ TODAY FOR WEST MICHIGAN’S FINEST BUSINESS NEWS REPORTING >