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Sep 30, 2021
Mercantile Bank Q3 2021 Earnings Report
Reported strong third quarter results driven by core commercial loan originations and solid operating performance.
Key Takeaways
Mercantile Bank Corporation reported a strong third quarter with net income of $15.1 million, up 40.8% year-over-year. The bank experienced growth in core commercial loans, residential mortgage loans, and key fee income categories, while maintaining strong asset quality metrics.
Experienced strong growth in core commercial loans and residential mortgage loans.
Maintained strength in commercial loan and residential mortgage loan pipelines.
Showed ongoing strength in asset quality metrics.
Achieved solid earnings and capital position.
Mercantile Bank
Mercantile Bank
Forward Guidance
Mercantile believes core commercial loan originations will remain robust during the fourth quarter and into 2022 based on their current loan pipeline.
Positive Outlook
- Growth in core commercial loans and residential mortgage loans
- Sustained strength in commercial loan and residential mortgage loan pipelines
- Ongoing strength in asset quality metrics
- Solid earnings and capital position
- Growth in key fee income categories
Challenges Ahead
- Excess liquidity impacting yield on earning assets and net interest margin
- Lower yield on securities due to declining interest rate environment
- Increased health insurance costs due to higher level of claims
- Increased FDIC deposit insurance premiums
- Potential impact of COVID-19 pandemic on the economy