GRAND RAPIDS — Mercantile Bank Corp. grew third quarter earnings by more than 20 percent compared to a year ago.
The Grand Rapids-based Mercantile Bank (Nasdaq: MBWM) this morning reported $10.1 million in quarterly net income, or 61 cents per diluted share. That compares with net income of $8.3 million, or 51 cents per diluted share, in the third quarter of 2017.
The bank grew total loans by $143 million during the quarter, or about 5.5 percent, to $2.67 billion. Loan growth included $119 million in commercial loans originated to new and existing borrowers.
At the end of the quarter, Mercantile Bank had $152 million in commercial and construction and development loan commitments that it expects to fund in the next 12 months to 18 months.
Mercantile Bank’s net income through three quarters of 2018 totaled $30.4 million, or $1.83 per diluted share, versus $23.2 million, or $1.41 per diluted share, over the same period in 2017.
“Our strong financial performance during the first nine months of 2018 positions us to meet profitability and growth targets in the fourth quarter and beyond,” Mercantile Bank President and CEO Robert Kaminski said during a conference call with analysts to discuss quarterly results. “Our sustained strength and core profitability, sound capital position, and healthy commercial and residential mortgage loan pipelines position us to finish the year in strong fashion and take advantage of future growth opportunities.”
A lower federal tax rate contributed to part of the bank’s earnings growth. Mercantile Bank recorded $2.3 million in federal tax expenses for the third quarter, compared to $3.7 million a year earlier, and $7.4 million over nine months of 2018, down from $10.3 million through three quarters last year.
The bank’s strong performance led directors to declare a special cash dividend of 75 cents per share of common stock, which is in addition to a higher quarterly dividend of 25 cents per share.
Mercantile Bank has 47 offices in Lower Peninsula with total assets of $3.3 billion and $2.5 billion in deposits.