GRAND RAPIDS — Mercantile Bank Corp. maintained solid growth and earnings through the third quarter.
The Grand Rapids-based Mercantile Bank (Nasdaq: MBWM) this morning reported third quarter net income of $12.6 million, or 77 cents per diluted share. That compares to net income of $10.1 million, or 61 cents per diluted share, for the same period a year ago.
Total loans grew 8.9 percent during the previous 12 months to end the third quarter at $2.93 billion. Commercial loans alone increased 8.6 percent to $2.50 billion.
“The bank’s solid financial condition, accelerating commercial and mortgage loan originations, and solid loan pipelines give us confidence that the healthy results achieved during the first nine months of the year will provide the foundation for continued strong performance for the rest of 2019 and future periods,” President and CEO Robert Kaminski said in a morning conference call with brokerage analysts to discuss quarterly results. “Our steady core profitability, strong capital position and healthy loan pipelines will serve us well for the balance of the year and beyond.”
Mercantile Bank originated $153 million in commercial loans to new and existing borrowers during the third quarter, and $412 million in the first nine months of the year, President Ray Reitsma said. The quarterly commercial loan growth was the highest since the second quarter of 2016, Reitsma added.
As of Sept. 30, the bank had a “solid” pipeline with about $91 million in commercial construction and development loans that it expects to largely fund in the next 12-18 months, he said.
Net income through the first nine months of 2019 totaled $36.1 million, or $2.20 per diluted share, versus $30.4 million, or $1.83 per diluted share, through the third quarter a year ago.
The nine-month results included $3.1 million, or 19 cents per diluted share, from the sale of a former branch location and a bank-owned life insurance claim. Interest income from purchased loan accounting entries increased net income during the first nine months of 2019 by $900,000, or 5 cents per diluted share, and by $2.7 million, or 16 cents per diluted share, in the same period of 2018.
Minus those impacts, diluted earnings per share grew by 29 cents in the first nine months of 2019 over the same period a year earlier.
Mercantile Bank, with 46 offices across the Lower Peninsula, ended the third quarter with $3.71 billion in total assets, a year-over-year increase of 12.4 percent.