Mercantile Bank Corporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Reports Net Loan Charge-Offs for the Fourth Quarter of 2017; Provides Earnings Guidance for the Year 2018
January 16, 2018 at 06:01 am
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Mercantile Bank Corporation announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2017. The company reported net income of $8.0 million, or $0.48 per diluted share, for the fourth quarter of 2017, compared with net income of $8.1 million, or $0.49 per diluted share, for the respective prior-year period. Total revenue, which consists of net interest income and noninterest income, was $32.9 million during the fourth quarter of 2017, up $1.9 million, or 6.0%, from the prior-year fourth quarter. Net interest income during the fourth quarter of 2017 was $28.4 million, up $2.0 million, or 7.4%, from the fourth quarter of 2016 of $26.435 million, reflecting a higher level of earning assets and an increased net interest margin. Income before federal income tax expense was $12.457 million against $12.045 million a year ago. Return on average assets was 0.97% against 1.05% a year ago. Return on average equity was 8.70% against 9.35% a year ago.
For the full year 2017, the company reported net income of $31.3 million, or $1.90 per diluted share, compared with net income of $31.9 million, or $1.96 per diluted share, for the full year 2016. Total revenue was $129 million during the full year 2017, up $1.8 million, or 1.5%, from 2016. Net interest income was $110 million in 2017, up $3.9 million, or 3.7%, from the prior year net interest income of $105.867 million, reflecting a higher level of earning assets. Net interest income and the net interest margin during 2017 and 2016 were also affected by purchase accounting accretion and amortization entries associated with the fair value measurements recorded effective June 1, 2014. Income before federal income tax expense was $46.083 million against $46.887 million a year ago. Return on average assets was 1.00% against 1.07% a year ago. Return on average equity was 8.82% against 9.35% a year ago.
Net loan charge-offs were $0.3 million during the fourth quarter of 2017, or an annualized 0.05% of average loans, and $0.2 million, or an annualized 0.03% of average loans, during the prior-year fourth quarter.
Provided the earning guidance for the year 2018. For the full year, The company expects effective tax rate to be about 19.5% throughout 2018.
Mercantile Bank Corporation is the bank holding company for Mercantile Bank (The Bank). The Bank is a state banking company that provides commercial banking services primarily to small- to medium-sized businesses and retail banking services. Its operations are centered around the West and Central portions of Michigan. It also has banking offices located in the metropolitan Detroit, Michigan area, Traverse City, Michigan, Saginaw, Michigan, and Midland, Michigan. It makes secured and unsecured commercial, construction, mortgage and consumer loans, and accepts checking, savings and time deposits. It also enables customers to conduct certain loan and deposit transactions by personal computer and through mobile applications. Its insurance product offerings include private passenger automobiles, homeowners, personal inland marine, boat owners, recreational vehicles, dwelling fire, umbrella policies, small businesses, and life insurance products.
Mercantile Bank Corporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Reports Net Loan Charge-Offs for the Fourth Quarter of 2017; Provides Earnings Guidance for the Year 2018